Bowen Coking Coal has started boxcut development at Ellensfield South in its Burton coal complex for what is set to be the Queensland company’s third open-cut mine.

The first Run-of-Mine (ROM) coal production from the Ellensfield South pit is expected in the third quarter of 2023, with plans to ramp up to a steady-state production rate of 2Mtpa-2.4Mtpa for about three years.

Meanwhile the coal handling and processing plant (CHPP) at Burton has started washing coal after the commissioning of the first refurbished module.

And the Bowen Coking Coal board has approved a $18 million revamp of the second module to lift nameplate capacity to 5.5Mtpa.

New Bowen Coking Coal chief executive officer Mark Ruston said turning on the first stage of the Burton wash plant was a very significant milestone for the company.

“Bowen is making great strides at the Burton complex and delivering on the first phase of our growth strategy to become a significant producer of high-quality, low-ash, and low-sulphur coking coal for global steel production,” he said.

“The opening of the Ellensfield South pit is another major milestone for Bowen following first coal sales from the Broadmeadow East pit and Bluff ine in the southern Bowen Basin last year.

“Committing to the expansion of Burton capacity demonstrates Bowen’s firm belief in a robust, long-term future for high-quality Australian metallurgical coal exports.”

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In addition to the Burton CHPP and Mallawa train load out facility, the Burton complex includes the Lenton pits, Broadmeadow East (BME) pit and three Burton pits – Ellensfield South, Plumtree North and Isaac.

Contractor BUMA Australia has mobilised an additional excavator fleet at Broadmeadow East to increase coal production from that pit in the short term, while a further truck/excavator fleet will be deployed at Ellensfield South from next week.

A third new fleet is planned to be mobilised at Ellensfield South during the third quarter of CY2023, once sufficient pit-room is made available from boxcut development activities.

At that point the Burton complex would be supported by five large excavator fleets across the initial two pits, Bowen Coking Coal said.

Processing through the Burton CHPP is expected to ramp up over a period of three months, initially washing ROM stockpiles of Broadmeadow East coal.

Bowen Coking Coal said refurbishment of the second module of the CHPP, as well as the skyline conveyor system at the TLO, would now commence.

The ramp-up comes against a backdrop of elevated coking coal prices – with premium hard coking coal trading at $US321 per tonne as at the start of this week.

Mr Ruston said the company believed that strong coking coal prices would be here for some time to come.

“The expected re-entry of China, the world’s largest steel producer, is likely to make up lost ground this year after ending its strict zero-COVID policy, which has previously dampened growth and its associated steel and metallurgical coal demand.”