Gram agreed a £1.12/share cash deal taking ownership of the Cook coking coal colliery in Queensland, the nearby Minyango mine development project undergoing feasibility studies, and port usage rights.
The company is seeking to acquire coal assets to satisfy demand for coal in Guangdong province and its adjacent provinces.
Caledon has increased Cook’s marketable coal reserve estimate by 115% to 47.7 million mt in March and increased the project’s coal resource estimate by 874 million mt, or 256%, to 1.216 billion mt in December at Minyango.
An exploration drilling program was undertaken between June 2009 and September 2010 at the Cook mine site.
Wash plant simulations indicated that the Minyango project could generate a primary coking coal product of 7.5-8% ash with low to moderate sulfur and phosphorous and a secondary thermal product of 15% ash, reports Platts.com
