Bowen: Bring Around Burton Coal Mine

SURFACE MINING

Bowen: Bring Around Burton Coal Mine

In the days after the preferred bIdder desIgnatIon was granted for the stopped Bluff coal mine at Carabella Resources, Bowen Coking Coal, which is centered in Queensland, inked a 'transformative' binding contract for 90% of the suspended Burton mine and its surrounding resources.

The conditions with New Hope Corporation include payment of A$20 million in advance to the New Hope Corporation for the interest in the fellow LentonJoint Undertaking, including Burton, a 5.5 million ton per annum coal-fired plant, transport routes, and load-out facilities. At least $10 million in cash must be delivered as a down payment, and there are proceeding milestones along with royalty payments not allowed to exceed $77.5 million.

Burton ran for nearly 20 years until Peabody Energy, who was the owner at that time) was stopped in 2016 because of low charcoal prices. With Bluff, Burton, and its current production ambitions in the adjacent Broadmeadow East, and Isaac Rivers at the core of the Bowen coal basin, Bowen aims to become a significant multi-mine coking coal producer.

Burton would provide it a focal center with an infrastructure replacement worth $300 million.

It thinks that within 12 months, six months after Broadmeadow East and Isaac River, Burton can return to production. Bowen plans to produce 5Mtpa each year by 2024.