Washpool Hard Coking Coal Project

Washpool Hard Coking Coal Project is an open cut coal mine proposed by Aquila Resources. The Project is located 260 kilometres (km) west of Rockhampton and 60 km to the north east of Emerald.

The project, which is the subject of a feasibility study, has a notional commissioning date of 2012. It is estimated that the project will produce 1.6-2.0 million tonnes per annum of coking coal. The project is estimated to cost $402 million and employ 400 people during construction and 300 while operating.

In June 2009, Aquila Resources announced that it had completed a concept study on the project which "has produced robust economics and identified no potential fatal flaws". The company stated that its capital expenditure estimate included "a 30% contingency allowance" and was based on estimated production of "1.6mtpa of Hard Coking Coal over a 18 year mine life forecast, at an average FOB cost of <USD70/t". While the company states that that "Base Case project economics" are "very robust" giving the project an internal rate of return of 35% and a payback period of four years, this was abased on a rather optimistic assumption (for exporters) of the A$1 trading at US70 cents. The company also states that "1.6mtpa of capacity is being secured at the Wiggins Island Coal Terminal Project at Gladstone by the Company, with first production schedule to occur during calendar 2012."

In June 2009 the company stated that the project feasibility study is due for completion by December 2010 with "the Definitive Feasibility Study, Mining Lease grant and approval process to be completed mid 2011."

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