Bowen Coking Coal has secured an agreement with Peabody to acquire the Broadmeadow East coking coal project near Moranbah, Queensland.
Broadmeadow East is an undeveloped project with around 33 million tonnes of metallurgical coal that is less than 50 kilometres from two other BCB projects.
The deal includes rights to the New Lenton joint venture coal handling and preparation plant, and the train load-out facility, both located near the Broadmeadow East project.
BCB has secured a 1 million tonne per annum throughput capacity at the New Lenton joint venture coal handling preparation plant and train load-out facility, with the possibility of this doubling under the agreement.
According to BCB managing director Gerhard Redelinghuys, the Broadmeadow East project will provide the company with the opportunity to jumpstart its coal production.
“We are delighted to have reached agreement with Peabody on this deposit. The deposit is unmined, sits within a granted Mining Lease and we have secured access to necessary infrastructure in the form of a haul road, CHPP and train load out facility, increasing the potential for a rapid start to production,” Redelinghuys said.
“Broadmeadow East becomes the most advanced project in the company’s portfolio of near-term coking coal development projects, which reflects the board’s desire to transform the company from developer to producer, as soon as possible.”
A cash payment of $1 million has been slated for the acquisition plus a royalty of $1 per tonne of coal produced, with BCB having also received commitments to raise $2.25 million on the ASX.