CQ mine takeover promises 200 new jobs
BOWEN Coking Coal has reached an agreement to acquire the Peabody’s Broadmeadow East coal project near Moranbah.
The company will acquire the undeveloped mine for $1 million, plus up to $1.5 million in royalties.
Bowen Coking Coal director Nick Jorss expected the project to be operational within 18 months and create between 180 and 200 new ongoing jobs.
The company has set a target for Broadmeadow East to produce at least one million tonnes of metallurgical coal per annum.
The deal included rights to the New Lenton joint venture coal handling and preparation plant and train load-out facility, both located near the project.
Mr Jorss expected a fast approvals process for Broadmeadow East because it was on a granted mining lease.
“It is a nice, mid-sized project that we can get going very quickly,” he said.
“Very little construction needs to be done because we are using third-party infrastructure.”
Broadmeadow East is now the company’s most advanced project within its portfolio of near-term coking coal development projects.
Mr Jorss said the acquisition would support the company’s planned transition from coal explorer to coal producer.
“That is really what the company was set up to do,” he said.
“That is where we can start to create some real value. Not just shareholder value, but value for employees, communities and governments.”
Broadmeadow East is one of Bowen Coking Coal’s five coal projects in the Bowen Basin.
It also owns the Isaac River coal project, located near Daunia Mine.
A mining lease has been lodged for the project and environmental approvals are being sought.
“That was the most advanced project we had until we bought Broadmeadow East,” Mr Jorss said.
“We now expect Broadmeadow East to come into production before Isaac River.”