FXR and ICX cooperate on coking coal project
Fox Resources Limited (FXR) and International Coal Limited (ICX) have announced their intention to cooperate on the Bundaberg coking coal project in Queensland, Australia.
The Bundaberg project covers EPC 2196 and EPC 1523. The arrangement follows the estimation of a 37.9 million t Inferred Resource in EPC 2196, and there has been no change to the data since the information was released in December 2013. Recent drilling by Fox Resources confirmed strong results.
Economic viability
Fox Resources managing director, Paul Dunbar, commented: “The [data sharing] arrangement is an initial step toward evaluating the economic viability of the combined coal seams that occur on EPC2196 and EPC1523. We are going to work together in a transparent manner to evaluate the potential and possible economic viability of the combined project. It’s in our best interest to see the project evaluated and potentially developed to its maximum potential”.
The arrangement paves the way for future cooperation between the two companies on the development of the coking coal project.
Strong results
Glen Simpson, CEO of ICX, added: “The project has great potential and continues to deliver strong results. Our next step will be to refine our understanding of our resource, the resource potential in the region and move toward conceptualizing the opportunity it presents. Having a strong relationship with Fox Resources will ensure we maximize that opportunity and makes perfect sense for the potential development of the area”.
The Bundaberg project contains a significant Inferred Resource of hard coking coal within EPC 2196 and a resource is expected to be estimated on EPC 1523 as soon as the data from the recently completed drilling program is compiled.
Joint development
Fox Resources and International Coal have agreed to work together to develop the resource at Bundaberg held under EPC 1523 and EPC 2196. International Coal Limited has also reached an agreement with Queensland Coal Investments (QCI) to take over the management and operation of EPC 2194, 2195 and 2196 with QCI remaining at a 25% stake in the project.
Conclusion
The cooperation between International Coal and Fox Resources will ensure the resource potential at Bundaberg is maximized. The Board and Management of both companies look forward to working together to further develop this project.
Adapted from press release by Katie Woodward
Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/04032014/cooperation_on_queensland_coking_coal_project_585/
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