Coal news and updates

Malabar Coal (ASX: MBC) has calculated a maiden Reserve of 91 million tonnes for its Spur Hill Underground Coking Coal Project in New South Wales.

 

Spur Hill is adjacent to BHP Billiton’s (ASX: BHP) Mt Arthur North mine, Anglo Coal’s Drayton mine and in close proximity to Xstrata Coal’s Mangoola mine.

 

Resources have also been updated to 626Mt including an increase in the Indicated Resource to 395Mt from 334Mt.

 

The Reserves Estimate was calculated based on two seams that will be mined in the initial years of the mine’s life.

 

More of the Resource is expected to be converted into Reserves as further field‐work and studies are undertaken, underpinning the project beyond 20 years.

 

Spur Hill is currently envisioned as a longwall operation that will produce between 6 million to 8 million tonnes per annum of ROM coal. First coal is expected to ship in late 2017-early 2018.

 

 

 

Source: www.proactiveinvestors.com.au