South32 has reduced its estimates of coal reserves at the Illawarra metallurgical coal project in southern New South Wales.
The announcement follows the conclusion of a commercial agreement to relinquish a portion of its mining lease in the Appin area, alongside modifications to the mine layout.
South32’s partial lease relinquishment was the result of a commercial arrangement with a land holder within the lease area.
Coal reserves for the Bulli seam have been reduced by 22 million tonnes to 114 million tonnes following the changes, with coal reserves for the Wongawilli seam remaining unchanged.
The Illawarra metallurgical coal project produces high-quality metallurgical coal used for steelmaking, which is shipped both around Australia and globally.
It is wholly owned by South32 and consists of two underground coal mines (Appin and Dendrobium) and two coal processing facilities, located 80 kilometres south of Sydney.
Earlier this year, the company reported strong production results at the site following longwall developments.
South32’s production reached 3.8 million tonnes in the half year to December 2018, which was a 106 per cent increase on the same half a year previously.
The results were driven by longwall moves at the Dendrobium and Appin collieries.