COAL

Coal in Australia

Teresa Coal Project, Queensland

Linc Energy is proposing to develop the Teresa Coal Project located about 17 kilometres from Emerald in the Bowen Basin in Queensland.

The project is contained within the boundaries defined under Mining Lease Applications 70405 and 70442. The existing Emerald–Clermont rail line (Blair Athol Branch Railway) traverses the leases as does the Gregory Highway.

The proposed longwall mine could produce up to 8 million tonnes per annum of Run of Mine coal with a product yield of approximately 80 per cent. The product would be an export quality PCI coal. The life of the mine is dependent on final production numbers, but is expected to be 20 to 30 years. Coal mined via underground methods will be fed to a CHPP prior to load-out and rail shipment to port for export.

Construction is scheduled to commence in early 2013 subject to gaining all necessary approvals.

Linc Energy has engaged GHD to act as the consultant on the Environmental Impact Statement for the project.

  To view Linc Energy’s Queensland tenements

  For more information read Linc Energy’s ASX announcements

Great Northern Leases Exploration, Queensland

Linc Energy owns five Exploration Permits for Coal (EPC) in the Millungera Basin in North Queensland. Linc Energy has also applied for another five EPCs in the region, which have been accepted by the regulator.

Exploration work to date has identified formations for drilling, with initial indications revealing extensive coal measures. Groundwater pressure studies have been conducted and following an initial round of drilling, Linc Energy will conduct further drilling to delineate the resources.

  To view Linc Energy’s Queensland tenements

Galilee Coal Royalty, Queensland

As part of the sale of its Galilee tenement (renamed ‘Carmichael’) to the Adani Group of India last year, Linc Energy secured a royalty of $2 per tonne (indexed to CPI) over the first twenty years of production. With Adani planning a 60 million tonne per annum coal mine on the site, Linc Energy holds an extremely valuable royalty deed that may earn in excess of $120 million per annum at full production.

Since the sale last year, Adani has secured the 99 year lease of the X50 Abbot Point Coal Terminal near Bowen and is a preferred proponent to develop the proposed Dudgeon Point Coal Terminal near Mackay. Adani is also expected to bid for one of the new terminals at Abbot Point.

Linc Energy will continue to update the market on this future revenue stream as Adani work towards their stated goal of having first production from Carmichael in 2014.

  For more information read Linc Energy’s ASX announcements

Other Coal Exploration in Queensland

Linc Energy holds Exploration Permits for Coal in the following coal basins: Biloela Basin, Bowen Basin, Callide Basin, Clarence Moreton Basin, Eromanga Basin, Galilee Basin and Surat Basin.

  To view Linc Energy's Queenslands coal tenements

  For more information read Linc Energy’s ASX announcements