Fox Resources and International Coal have agreed to an information sharing arrangement regarding their hard metallurgical coal projects in Bundaberg, Queensland, which lie adjacent to one another.
While International Coal has estimated a coal resource of 37.9 million t in tenement EPC2196, exploration by fox indicates the resource extends south into its EPC1523 tenement.
International Coal has also reached an agreement with Hancock Prospecting subsidiary Queensland Coal Investment (QCI) to take over the management and operation of EPC2194, 2195 and 2196, with QCI remaining at a 25% stake in the project.
International Coal CEO Glenn Simpson, said: “The project has great potential and continues to deliver strong results. Our next step will be to refine our understanding of our resource, the resource potential in the region and move toward conceptualising the opportunity it presents.”
Simpson added that “having a strong relationship with Fox Resources will ensure we maximise that opportunity and makes perfect sense for the potential development of the area.”
Paul Dunbar, managing director of Fox Resources, said that the arrangement with International Coal was an initial step toward evaluating the economic viability of the combined coal seams that occur on EPC2196 and EPC1523. “We are going to work together in a transparent manner to evaluate the potential and possible economic viability of the combined project,” Dunbar said. “It’s in our best interest to see the project evaluated and potentially developed to its maximum potential.”
Proactive Investors suggest that the agreement between the two companies to share data from their adjacent metallurgical coal projects will ensure that the resource potential for both tenements is maximised.
That the arrangement could also pave way for joint development is “encouraging” according to analysts. Doing so would allow the companies to combine their resources for project development, bringing economies of scale.
The contained hard metallurgical coal has a Crucible Swelling Number (CSN) of 9, which shows a high-quality coal that compares favourably with recognised Bowen Basin benchmark coals and mines.
There are also nearby port options with likely capacity at Bundaberg port potentially available – once the projects have been developed and coal extraction begins.
Edited from various sources by Sam Dodson
Read the article online at: https://www.worldcoal.com/coal/04032014/international_coal_and_fox_resources_join_forces_584/