Washpool Hard Coking Coal Project

Washpool Hard Coking Coal Project

The Washpool Coal Project (the Project), consists of a proposed open cut coal mine situated in the Bowen Basin, Central Queensland. The Project will deliver up to approximately 1.6 – 2.0 million product tonnes per annum (Mtpa) of hard coking coal for export markets.

The Project site is located 260 km west of Rockhampton, 60 km to the north east of Emerald and 24 km to the northwest of Blackwater. The Project is positioned between the Curragh Coal Mine (to the east) operated by Wesfarmers (Curragh) Ltd and Ensham Coal Mine (to the west) operated by Ensham Resources Pty Ltd. To the north of the Project area lies the Mackenzie River.  The coal resource for Washpool is located within two Exploration Permits for Coal (EPC) 958 and 966, and a Mineral Development Licence application (MDLa) 403, however, the Project area is confined to a smaller proposed Mining Lease application (MLa) 80164.

The Washpool resource currently totals 138 Mt of Indicated and Inferred tonnes of high rank coal which exhibits excellent coking properties. Coal will be mined at approximately 4 Mt/a run-of-mine (ROM) coal which will produce approximately 1.6 – 2.0 Mt/a of product, until the depletion of reserves. The coal will be mined initially using truck and shovel mining methods with a view to moving to dragline in the future, with the emphasis on in pit waste dumping. There are plans to transport the coal via rail along the existing Peak Downs – Emerald – Blackwater railway system, to the new Wiggins Island Coal Export Terminal (WICET) for export coal terminal for export to overseas markets.

The Project Feasibility Study is scheduled to be completed in the first quarter 2010. On the basis of this study indicates robust project economics, the project will then proceed to Definitive (bankable) feasibility study. Subject to completion of the approval process and the Definitive feasibility study, the Project is expected to commence production in 2012.

Washpool Coal Project - Location Plans

map map

Project History

Argos (QLD) Pty Ltd, a wholly owned company of Aquila Recourses Limited, was granted EPC 958 (Washpool) in June 2005. This was followed by EPC 966 (Mt Crocker) in April 2006. In 2006, Aquila completed four drill traverses spacing across EPC 958, which identified the resource. In 2007, Aquila commenced another exploration program to delineate the resource extent and target coal quality. A total of 69 holes, made up of 10 cored drill holes and 59 chip drill holes were drilled, and from this the first JORC compliant resource was established. This data was used to identify mining and logistics options and to complete the Project Concept Study in July 2009. Since then the total holes drilled has been raised to approximately 175.

The Resource

The initial resource statement for the deposit has been prepared with an estimated insitu coal resource of 138.1 million tonnes.

Washpool Project Estimate of Insitu Coal Resources
  Insitu Coal Resources (Mt)
Seam Indicated Inferred Indicated and
Inferred
A 5.6 10.0 15.6
B 8.6 13.6 22.2
C 6.0 11.0 17.0
D 7.3 17.3 24.6
E 6.3 12.8 19.1
F - 39.6 39.6
Total 33.8 104.3 138.1

A new resource statement will be released with the Feasibility Study.

Mine Operation

The proposed Washpool mining operation will use open cut truck and shovel strip mining methods and a combination of dragline(s) and, with the emphasis on in pit waste dumping. The base case considered will be approximately 4 Mt/a ROM coal which will produce 1.6 – 2.0 Mt/a product. This plan requires the average movement of 30 – 40 million bank cubic metres (Mbcm) of overburden removal per year. The mine will have a life of approximately 20 years.

The target seam is 5 to 6 m thick made up of a number of plies separated by interburdens which will require selective mining techniques or a total mining method in conjunction with a waste strategy at the coal handling and processing plant (CHPP).

Coal Handling and Preparation

The coal handling and preparation plant (CHPP) and rail load out facilities will be located to the south of the deposit. The CHPP will have a capacity of up to 600 tonnes per hour (t/hr) feed, and be capable of processing up to 4 Mtpa and is likely to operate seven days per week.

The CHPP’s infrastructure will most likely comprise a run of mine (ROM) pad, ROM coal delivery system, coal washery module, coal waste delivery system (tailings and coarse rejects), clean coal delivery system, product stockpile, offices, fuel farm and workshops.

Construction of transport infrastructure for the Project will include work necessary to connect the Project to the regional systems and cover transport requirements on site. Access to the Project area is currently via publically gazetted roads. The transport study is investigating all options to minimise the impact to the neighbouring landowners and the environment. Within the Project area, the main haul roads will be constructed north-south to connect the mining area to the ROM pad, east-west to access the various waste dumps on the site, and constructed using current mine design standards.

Logistics Options

Construction of transport infrastructure for the Project will include work necessary to connect the Project to the regional systems and cover transport requirements on site.

The Blackwater railway system is 16 km south of the Project area and provides access to the coal port at Gladstone some 260 km to the east. A transport options study is currently being undertaken to determine the most appropriate and feasible route with limited impacts. Once determined, an infrastructure lease application will be submitted over the area required through the Queensland Department of Employment, Economic Development and Innovation (DEEDI).

The product coal from the Project will be railed from site to Gladstone for shipping to export customers. A nomination of 1.6 Mtpa has been lodged with Wiggins Island coal export terminal to take the complete product stream from the mine for export.

Photos

Project Approvals

A Mining Lease application was submitted in December 2009. As part of the approvals process for this project, Aquila is currently undertaking an Environmental Impact Statement (EIS) which is required under the Queensland Environmental Protection Act 1994. An EIS is a general and technical document that assesses the feasibility of a project by conducting thorough technical studies of potential environmental, social and economic impacts, and proposes feasible ways to manage them. An EIS requires significant background research, baseline studies, impact modelling and public consultation and input.

The Washpool Coal Project has decided to undertake a voluntary EIS involving almost 18 months of stakeholder consultation and scientific study to ensure the project is economically, socially and environmentally sound. The EIS will provide a detailed description of the:

  • existing social, economic, natural environment;
  • proposed project and development objectives;
  • potential impact of the project on the social, economic, natural environment;
  • need for, and scope of, any environmental management plans and/or operational plans to mitigate potential adverse impacts; and
  • measures proposed to mitigate potential adverse impacts.

The following documents relate to the Washpool Coal Project EIS and the process conducted to date.

Throughout the Project a number of community consultation newsletters and forums will be distributed and held, copies of these can be found below.

For further information about the EIS process for the Washpool Coal Project please contact lmaiorana@aquilaresources.com.au

Washpool Coal Project - Landscape

washpool coal project landscape image

* The estimates of Coal Resources for the Washpool Project presented on this website have been carried out in accordance with the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code), 2004, prepared by the Joint Ore Reserves Committee of The Australasian Institute of Mining and Metallurgy (AusIMM) and The Australasian Institute of Geoscientists and Minerals Council of Australia, December 2004.  The information in this report that relates to Washpool Coal Resources, is compiled by Mr Blair Richardson and modelled and reviewed by Mr Lyon Barrett.  Mr Richardson was previously an employee of Aquila Resources Ltd, with 25 years experience in geology and over 15 years experience in resource evaluation.  Mr Richardson is a member of The Australasian Institute of Mining and Metallurgy and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which hs is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the JORC Code.  Mr Richardson holds shares in Aquila Resources Ltd.  Mr Barratt is a full time employee of Salva Resources and has over 15 years experience in geology and over 10 years experience in resource evaluation.  Mr Barrett is a member of The Australasian Institute of Mining and Metallurgy and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the JORC Code.  Mr Richardson and Mr Barrett consent to the inclusion on this website of the matters based on their information in the form and context in which it appears.