Bowen Coking Coal has completed acquisition of the Broadmeadow East coking coal project near Moranbah, paving the way for development of its first mine.

The company said today it had mine planning and environmental approval processes underway to fast-track the start-up of operations.

“We are genuinely excited about having completed the Broadmeadow East acquisition well ahead of schedule,” managing director Gerhard Redelinghuys said.

“As the project sits on a granted mining lease, Broadmeadow East now becomes our most advanced open-pit coking coal project.

“We have already commenced the necessary planning and regulator submissions to determine the optimal mine plan and associated environmental authorisations, with a view to being shovel ready as soon as practically possible.

“Alongside Hillalong and Isaac River, we now have three open-pit coking coal projects which we are driving towards production. This reflects our intention to become a significant producer of high quality coking coal from Queensland ‘s premier Bowen Basin in the near term.”

The company has previously indicated plans to have the project operational by the end of 2021, creating up to 200 ongoing jobs.

The deal to buy Peabody Energy’s Broadmeadow East project is costing Bowen Coking Coal $1 million cash plus royalties of up to $1.5 million.

The transaction includes access rights to the New Lenton Joint Venture coal handling and preparation plant and train load-out facility.

Bowen Coking Coal has secured throughput capacity of a minimum of 1Mtpa, with the ability to potentially increase this capacity to a total of 2Mtpa subject to agreement.

Broadmeadow East, with a JORC resource of 33 million tonnes, is about 25km north-east of the town of Moranbah. It is 30km north-west of Bowen Coking Coal’s Isaac River project and 45km south of the company’s Hillalong coking coal tenements.

Bowen Coking Coal has engaged Xenith Consulting to conduct mine planning and design work.

Nitro Solutions is managing the environmental approval processes while the final transfer of title is underway.

Bowen Coking Coal said it was also designing a mini exploration program to test a potential extension of the resource towards the south.