QCoal an emerging Bowen Basin giant

QCOAL’s chief financial officer James Black will this month outline company plans to become a 20-million-tonne coal export power house from Queensland’s north Bowen Region using rail infrastructure established by Indian giant GVK.
QCoal an emerging Bowen Basin giant QCoal an emerging Bowen Basin giant QCoal an emerging Bowen Basin giant QCoal an emerging Bowen Basin giant QCoal an emerging Bowen Basin giant

Sonoma mine location, courtesy of QCoal.

Lou Caruana

Black will address the Bowen Basin Mining Club on March 22 in Mackay and explain the company’s plans for the future, including updates on its Sonoma mine as well as the Cows, Drake, Jax and Byerwen coal projects.

QCoal plans to expand to production of 20 million tonnes of coal for export each year by 2018.

American giant Cliffs Natural Resources announced in July that it would sell its 45% economic interest in the Sonoma joint venture coal mine to QCoal in a $141 million deal.

The assets to be sold include Cliffs' interests in the Sonoma mine along with its ownership of the affiliated wash plant.

Sonoma mine produces 4Mtpa of coking and thermal coal products for export to countries such as Japan, Korea, Taiwan and China. It represents a 170Mt resource.

The mine's first shipment of coal product was railed in January 2008, with the first load of coal shipped that February.

GVK Hancock and QCoal entered into a memorandum of understanding in December for the two companies to work together on coal transportation services, to be provided by GVK Hancock to QCoal for approximately 20Mtpa of coal.

It is anticipated QCoal’s product will be transported using the infrastructure being developed by GVK Hancock, including the Galilee Basin North-South rail line, recently announced as the preferred rail corridor by the Queensland government.

The MoU sets out the key commercial principles – including the scope of services, pricing and service requirements – for GVK Hancock to provide transportation services to QCoal and its joint venture parties.

GVK Hancock and QCoal have also been in detailed discussions that have identified numerous areas of co-operation set to benefit the projects being developed.