Wongai Coking Coal Project

The Wongai Coking Coal Project is a unique resource of high quality hard coking coal that is shallow and located less than 15km from the coast in tropical North Queensland. The project offers an opportunity to develop a high quality hard coking coal resource in a new geological basin.

It has high quality coking coal properties valued in the manufacture of steel. This is a major resource that could support a medium scale underground coal mining project with a long life/low capital/low operating cost mining operation.

The project is located on freehold land owned by the Kalpowar Traditional Owners, who are also our joint venture partners.

 

This is a unique opportunity to develop a project that will have low capital cost and low operating cost and provide a source of high quality coking coal to the steel mills of Japan, South Korea, China, India, Vietnam and South East Asia.

Coal

The project will consist of a flexible bord and pillar underground mine, process plant, overland haulage and transhipment facility producing 1.8 – 2.0 million tonne per annum of premium hard coking coal for the Asian markets. A concept study was completed in early 2014 showing geological resource, mine and infrastructure layout and providing solid economic returns. This study is being upgraded with a pre-feasibility stage now 70% complete.

The local Kalpower people, traditional owners and local landowners have endorsed an Indigenous Land Use Agreement which has been registered with the government.  Local landowners operate a cattle property on the land above the coal resource and proposed mining area. The respondents to the ILUA control 12.5% fixed and free carry interest in the project and will benefit from long term employment and training. The mine will make a significant economic contribution to remote North Queensland including Cooktown and Cairns and local indigenous business enterprises.

The farm-in agreement allows Bounty a staged progression to secure 51% interest in the project on completion of a bankable feasibility study. Bounty has also executed a life of mine management contract with the joint venture partners.

Programmed Activities March 2016 to June 2017

During this period Bounty will conduct investigations and exploration to advance the Wongai project toward development approval. Key milestones are completion of: prefeasibility study; bankable feasibility study; environmental impact statement; and conversion of part of the project to mining lease.