Eagle Downs is a large, high-quality and fully permitted metallurgical coal development project.
The Eagle Downs metallurgical coal project is located approximately 25 kilometres south-east of the town of Moranbah in Queensland’s Bowen Basin.
In September 2018 we completed the acquisition of a 50 per cent interest in the project and assumed operatorship, with the other 50 per cent interest held by Aquila Resources, a subsidiary of China’s largest steel producer, BaoWu.
Following the completion of a feasibility study in the December 2020 quarter, the project has been placed on hold. While the study indicated the potential for a long-life operation, the expected returns do not currently support the allocation of capital in accordance with our capital management framework.
The project benefits from prior investment which has established infrastructure that may potentially support an accelerated development. In particular, dual 2km drifts were approximately 40% complete at the time of acquisition.
Prior work undertaken has indicated that the project has the potential to export 4.5Mtpa of coal (on average) from one longwall over the first 10 years of full production. Read the original announcement here.
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