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Next stage for Galilee coal projects

Hancock Prospecting yesterday submitted the draft terms of reference for its Kevin’s Corner Coal Mine Project to the Queensland Government and commenced an Environmental Impact Study (EIS) for its Alpha Coal Project.

Hancock has also established two subsidiary companies to develop the projects, which are both in the Galilee Basin.

Hancock Coal will be responsible for the Alpha Coal Project, while Hancock Galilee will oversee the Kevin’s Corner Project.

According to Hancock project director – coal Paul Mulder, 30 mtpa thermal coal mines would be built and operated at each project.

“The commencement of the EIS means the Alpha Project is the most advanced project in the Galilee Basin,” he said.

“We hope to move Kevin’s Corner into the EIS stage in the not-too-distant future.”

According to Mulder, the exploration programs to date had concentrated on coal suitable for export.

“The deposits contain high quality thermal coal with low ash content and low sulphur,” he said.

The Alpha project is currently based on a deposit of 2.6 billion tonnes of measured, indicated and inferred JORC compliant resources.

Kevin’s Corner is based on a deposit of 1.5 billion tonnes of indicated and inferred JORC compliant resources, but by the end of 2009 this will be upgraded to 2.5 billion tonnes.

“Both of these mines have the critical mass to support stand alone rail and port infrastructure, a fact that the Queensland Government has acknowledged,” Mulder said.

“These are clearly very large, high quality deposits in a premium location of the Basin.”

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