The 50:50 Eagle Downs joint venture is located southeast of Moranbah in the northern Bowen Basin, and is immediately down dip of BHP Billiton Mitsubishi Alliance's Peak Downs Coal Mine.
The joint venture this morning was able to upgrade the resource after an increase in indicated tonnage by 94Mt and decreasing inferred tonnage by 10Mt.
Coal resources occur in the Q seam, Harrow Creek Upper seam, Harrow Creek Lower seam and the Dysart seam within the Permian Moranbah Coal Measures.
A concept study into the project has indicated the potential for a hard coking coal longwall operation initially producing 4Mt per annum, with further potential to 7Mtpa at an estimated FOR operating cost of $A40–45 per tonne. The mine will target first coal by 2012.