Eagle Downs Metallurgical Coal Project

Eagle Downs metallurgical coal project site

Eagle Downs Metallurgical Coal Project ("Eagle Downs") is a proposed multi-seam underground longwall coal mine under development. 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 the regional rail infrastructure connecting Eagle Downs to multiple coal terminals.

Eagle Downs has the potential to average 4.5Mtpa, from one long wall over the first 10 years of full production. It is a fully permitted development project that is expected to produce a high quality hard coking coal product.

In September 2018, South32, a globally diversified mining company, completed the acquisition of a 50% interest in Eagle Downs and assumed operatorship of the Project. A final feasibility study is currently underway, with final investment decision ("FID") scheduled for the second half of 2020. Subject to FID, Aquila in partnership with South32 plan to construct a multi-seam underground longwall coal mine and processing plant with a dedicated rail spur and train loadout facility.

Project Definition and Status

The studies commenced in 2019 with the Feasibility Study ("FS") work currently being advanced ahead of FID.

The FS seeks to optimise the proposed mine development plan which was based on the detailed design that was conducted in past feasibility studies, which covered an extensive exploration program including a 3D seismic program over the mining area and technical studies completed, including ventilation, gas drainage, geotechnical design and hydrogeology amongst others.

The mine design will be utilising the latest technology to provide the best operational equipment to achieve targeted production rates, increased safety and capital efficiency.

Mine and Plant Description

The construction of the mine access is approximately 40% complete. The access consists of the development of two drifts, each 2km long down to the coal seam.

Site infrastructure including water supply and power requirements are already currently in place.  See photograph of existing infrastructure already established on site.