The Isaac River Project is located in the central Bowen Basin, approximately 30 km to the east of Moranbah in Central Queensland. It contains a resource estimate of 8.7 million t in accordance with the JORC code, of which 8.3 million t is classified in the measured and indicated categories. Studies have indicated a run of mine production target of 0.4 – 0.6 million tpy over a 4 – 5 year period. The total coal yield at Isaac River is estimated be approximately 81% split between 49% primary metallurgical (8 – 10% ash) and 32% secondary PCI (at 10.5% ash and high calorific value).
Bowen Coking Coal’s Managing Director and CEO, Gerhard Redelinghuys, said: “The EA approval is a major milestone for the project and is now on its way to becoming another one of Bowen’s new mines. The project requires only a modest capital investment as it is planned to leverage off existing third-party infrastructure. Isaac River will contribute additional high quality metallurgical coal to the company’s sales mix, complimenting the Bluff and Broadmeadow East/Burton projects which are on track for near term exports.”
In recent weeks, coal prices have rallied to all time high levels on the back of increased demand from Asia, coupled with supply shortages fuelled by the crisis in Ukraine and subsequent sanctions against Russia. Low volatile hard coking coal (Platts symbol PLVHA00) was trading at US$539/t FOB and mid volatile PCI (Platts symbol MCLVA00) traded at US$495/t on 28 March 2022.
The MLA and federal environmental approval under the EPBC Act are underway and are expected to be completed early in 3Q22.
