Aquila Upgrades Eagle Downs Coking Coal Reserves 61% To 254 Million Tons
April 10 2011 - 9:04PM
Dow Jones News
Reserves of hard coking coal at diversified mining explorer and
developer Aquila Resources Ltd.'s (AQA.AU) Eagle Downs project are
61% above previous estimates, totaling 254 million tons of
unprocessed coal, the company said Monday.
Aquila said the reserves would support a 47-year mine life at
the site, although the mine presently has no way of getting its
product to export markets due to a dispute between Aquila and Vale
S.A. (VALE), which owns a 50% stake in the mine.
Aquila said it expected to be granted a mining lease by July but
a definitive feasibility study on the project--an important step
towards production--couldn't be completed until it had export
capacity.
Around 206.6 million tons of Eagle Downs' coal reserves were in
the most-reliable "proved" category, with another 47.5 million tons
regarded as "probable," a less-accurate measure, Aquila said.
In terms of resources--a measure of overall coal in the ground
as opposed to economically recoverable reserves--the company said
Eagle Downs has 959 million tons, with 819 million tons in the
most-reliable "measured" and "indicated" categories.
Eagle Downs is in the Bowen Basin region of Queensland, the
world's biggest exporter of the hard coking coal used in
steelmaking. It sits just south of the four million tons a year
Isaac Plains mine, also a 50-50 joint venture of Aquila and
Vale.
Last February, Aquila announced a dispute with Vale, saying that
the Brazilian miner hadn't committed to a plan to export Eagle
Downs' coal through a new rail link to the port of Abbot Point in
northern Queensland, which currently is used exclusively by Xstrata
PLC (XTA.LN).
Aquila said that without this capacity it wouldn't be able to
complete its definitive feasibility study. It had also applied for
capacity at Dalrymple Bay, the world's biggest coking coal
terminal, and Wiggins Island, a multi-user coal export terminal
being developed close to the port of Gladstone in central
Queensland, the company said.
-By David Fickling, Dow Jones Newswires; +61 2 8272 4689; david.fickling@dowjones.com
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