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I was just having a quick look at the ALPHA COAL PROJECT in Queensland. Its also thermal coal so I thought it was worth looking at considering we are looking at developing BM?

key features
•30 mtpa open-cut coal mine
•495 km railway
•new port facility at Abbot Point
•water and electricity infrastructure

Tuesday, May 29, 2012

Alpha Coal Project given go-ahead
The Newman Government has given the green light to what will be one of Australia’s biggest mines, the $6.4 billion Alpha Coal Project in Queensland’s Galilee Basin.

Mr Seeney said the Coordinator-General had approved the mine with strict conditions and the move was a major step towards opening up the Galilee Basin’s coal deposits.

“The proposal is for a 30 million tonnes per year open-cut coal mine and a 495km railway line from the mine to the Port of Abbot Point near Bowen,” he said.

The project is expected to generate up to 3600 construction jobs and 990 operational jobs.

The mine plan comprises six separate open-cut pits, with a total strike length of 24 km in a north-south direction.

Hancock Coal anticipates the construction period to occur between 2013 and 2016, subject to relevant approvals being granted for the project."

This project will require hundreds of KM of rail which is why the CAPEX is more than 6 BILLION....

I wonder how their production costs will look compared to the exergens estimated costs of $20 per MT??

If I recall, the CAPEX for the BM project is approx. 2 billion which is less than one third of Alpha??

Definitely gives you a better understanding of the economics of BM IMO....

existing rail which will require work but the rail is already in place....that's a big cost and time savings??tick

The BM project is much closer to an existing port? tick

Hard to beat an estimated $20 per MT which is what was mentioned at the seminar last week.tick

I think the BM mine could also run for more than 30 years? tick

Now, are the Vic and fed government serious about supporting mining in vic? well the ALDP and S7 projects definitely support the mining plan/intention IMO


yes, lots of hurdles but none of this potential is built into the current MNM SP IMO...

I don't think out MC has any built in potential for coal or CSG at this stage...

Interesting time ahead,,,