The Mackenzie coal project in the Bowen Basin is set to change hands.
Aus Tin Mining has signed a binding term sheet with Resources and Energy Investments to acquire the interests.
Mackenzie comprises Mineral Development Licence (MDL 503) and Exploration Permit Coal (EPC 1445) about 30km north-east of Blackwater in the Bowen Basin.
Mackenzie is adjacent to producing coal mines at Jellinbah and Yarrabee with collective coal production of approximately 8.4Mt in 2019, of which the quality is primarily a low volatile Pulverised Coal Injection (PCI) for export markets.
Mackenzie includes a previously announced Indicated and Inferred JORC Resource of 138.1Mt1 of potential low volatile PCI quality coal.
The resource is reportedly based on 31 drill holes targeting four main seams (Aries, Castor, Pollux and Pisces) occurring at depths of between 250m and 450m.
A former owner of the tenements, Moreton Resources, reported the, “resource contains semi-soft metallurgical coking coal and low volatile PCI coal properties throughout”1.
Aus Tin Mining was excited by the opportunity to acquire Mackenzie and its substantial coal resources located in the engine room of Queensland’s coal industry, said Aus Tin Mining director Nicholas Mather.
“As global steel production rises to meet post-COVID demand, and given there is no commercial substitute for metallurgical coal in the production of steel, global demand for metallurgical coal will increase,” Mr Mather said.