Meteor Downs South

In April 2011 Endocoal lodged a Mining Lease Application for Meteor Downs South for a proposed 1.5Mtpa opencut thermal coal mine. The open cut mine will comprise of one pit only. This will be developed using a “centre pit basal seam ramp” configuration. This configuration provides the operational flexibility necessary to run a safe, low cost and highly productive operation.
 

Queensland Government's Department of Environment and Resource Management (DERM) have advised Endocoal an Environmental Impact Study ("EIS") is not required for the Meteor Downs South Project.  Endocoal has appointed consultants to undertake environmental baseline studies to allow development of the Environment Management Plan (EMP). This will then support the Environmental Authority Application required to be lodged and considered prior to the grant of a Mining Lease. Endocoal expects that the EMP process will take approximately 14-15 months.

Consultants have also been identified to prepare a Bankable Feasibiltiy Study for the MDS project which is targeted for completion in the second half of 2011.

These applications are supported by the required:

The current JORC resource for the Meteor Downs South mine project is 15.4Mt. It is planned to produce 1.5 Mtpa of low ash export grade thermal coal. The mining process will be open cut strip mining using standard truck and excavator methods. The project will require the removal of 5.4 million bank cubic meters (Mbcm) of overburden in the first year of operation, increasing up to 9.2 Mbcm in the final year. The current assumption is that all overburden will be moved by a single excavator and dump truck fleet.

With coal mining targeted at 1.5Mtpa it is proposed the overburden removal fleet will also be used to mine coal. A separate dedicated coal mining fleet will not be required. Coal mined from the pit would be hauled by the dump trucks to a top of ramp stockpile. The coal would then be rehandled from the top of the ramp and hauled by roadtrain 6.5k to a crushing/sizing plant. This will enable the appropriate buildup of Run of Mine inventory prior to train-loading.

The target coal seam has an ash content of 11.2% and will not require washing before dispatch to market. This negates the requirement to construct and operate a coal washing facility and the need for construction and management of a tailing disposal facility.

Product coal will be transported to the Port of Gladstone. This will require a rail loop connecting to the existing QR Bauhinia spur line to Blackwater presently servicing the adjoining Xstrata Rolleston open cut operation.