The funds will be used for exploring and evaluating the potential for future commercialization options within the Columboola tenement and also open up the opportunity for participation in MetroCoal’s other tenements. The Columboola JVA requires a minimum expenditure of AUD4m within the first two years of the agreement.
Mike O’Brien, CEO of MetroCoal, said: “China Coal is a substantial company producing in excess of 100 million tonnes of coal a year. With access to this strong mining base CCIEC will bring valuable technical skill and expertise into the joint venture, particularly in underground coal mining. Discussions have been ongoing for some time and during this period we have developed a good relationship with CCIEC Executives that will provide a constructive base for our future relationship.
“In terms of the work program the Columboola JVA will continue the initial exploration activities in EPC 1165 and subject to the success of this program, advance the development plans to exploit significant underground coal assets.”
MetroCoal, an Australia-based coal company, holds coal exploration tenements in the Surat coal basin covering approximately 4,000sqkm.
