With a total indicated and inferred resources of 13.5Mt, Bluff is an open-cut PCI coal mine in the Bowen Basin
Bluff is an open-cut PCI coal mine in the Bowen Basin. (Credit: Lukáš Jančička from Pixabay)
Bowen Coking Coal, through its wholly-owned subsidiary, has signed an option agreement with mining contractor MACA to acquire Bluff PCI Coal Mine in Australia.
With a total indicated and inferred resources of 13.5Mt, Bluff is an open-cut PCI coal mine in the Bowen Basin. Since December last year, the coal mine has been on care and maintenance.
In July this year, Bowen secured preferred bidder status in the sale process for the mine carried out by FTI Consulting as receivers and managers and controllers on behalf of MACA.
Bluff’s major assets consist of a granted mining lease (ML80194), secondary exploration permits (EPC1175 and EPC1999), an approved Environmental Authority and minor surface infrastructure that comprises workshop facilities, explosives magazines and minor surface infrastructure.
The mine acquisition is also comprised of ownership of 1,931ha of grazing land on two adjacent Grazing Homestead Perpetual leases.
Bowen Coking Coal executive vice-chairman Nick Jorss said: “Bluff is a rare opportunity to acquire a near-production asset which can be recommissioned without significant capital expenditure.
“The acquisition of the Bluff PCI mine accelerates our goal of becoming the Bowen Basin’s next independent producer of high-quality metallurgical coal to supply the steel industry worldwide.
“Our experienced team is preparing to restart the mine as soon as possible to maximise economic and social benefits afforded by the current high coal price environment.”
According to the company, the Bluff coal product is classified as an Ultra-Low Volatile PCI coal that is treated as a premium in the market for its low ash, high energy and high coke replacement ratio in comparison to standard PCI coal.
Following the start of operations in the first quarter of 2019, the site saw mining of up to 1.4Mt of coal to mid fourth-quarter of 2020.
It is located in the central Bowen Basin mining the Aries Castor, Pollux and Orion seams of the Rangal Coal Measures.
Bowen is aiming to produce 1.0 – 1.2Mtpa ROM over 4 to 6 years to serve the global steel industry.