Eagle Downs Metallurgical Coal Project

Eagle Downs Metallurgical Coal Project site

Eagle Downs Metallurgical Coal Project ("Eagle Downs") is a proposed underground coal mine operated by South32 with a total projected life of 47 years. It is located to the south of Moranbah in the Bowen Basin, immediately adjacent to and down dip of BHPB Mitsubishi Alliance's (BMA's) Peak Downs Mine. It is one of the last remaining undeveloped areas targeting the Moranbah Measures in the Bowen Basin, which is predominately the source of the world's premium seaborne traded hard coking coal product. The Eagle Downs mine site is crossed by regional rail infrastructure connecting Eagle Downs to multiple coal terminals.

Production from Eagle Downs is expected to average 5.2Mtpa from the initial Harrow Creek Upper (HCU) seam, at an operating cost of ~US$71/t (FOB ex-royalties), placing the mine in the lowest cost quartile of seaborne metallurgical coal supply. It is a fully permitted development project that is expected to produce a high quality, low volatile hard coking coal product. At peak production the mine is expected to employ a workforce of over 700.

The Project has been substantially de-risked with construction of the mine underground access drifts already approximately 40% complete. Project water supply and power infrastructure has been secured and a logistics solution progressed.