Hutton Coking Coal Project Overview
Valiant Resources is a private coal exploration and development company that was established to develop its principal asset, the Hutton Coking Coal Project, across its tenements that cover 1,469 sq km in the southern area of the Bowen Basin in Queensland, Australia.
The Hutton Coking Coal Project is one of the largest undeveloped coking coal assets in the world.
Valiant’s principal asset has five defined mining areas with a total JORC compliant Resource of 5.35 billion tonnes comprising:
- JORC Inferred Resource of 3.61 billion tonnes; and
- JORC Indicated Resources of 1.75 billion tonnes
The coals are of the Late Permian Bandanna Formation. The Resource is at depths suitable for underground mining.
The most recent update of the Hutton coal resource estimate is dated May 2019 and supersedes the last resource estimate dated October 2016. Underground mineable coal resources are reported for the B and D coal seams of the Bandanna Formation, with a minimum seam thickness of 1.8 m and a depth of cover limit of 900 m. The resource estimate totals 5.35 Bt, of which 1.75 Bt is classified as Indicated and 3.6 Bt as Inferred (Table 1.1).
Hutton coal resources are reported in accordance with the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (The JORC Code), 2012 Edition.
Figure 1.1 summarises the Hutton project coal resources according to depth of cover increments. 450 Mt of the total resource occurs at depths less than 600 m while 1.9 Bt occurs between 600 and 700 m and 1.78 Bt between 700 and 800 m depth. EPC1275 generally has greater depth of cover as shown in Figure 1.1, with the bulk of the resource between 600 and 900m depth.
Hutton Coking Coal Project – Location
Hutton Coking Coal Project – Identified Mining Areas
The table that follows the map below summarises each of the five identified mining areas of the Hutton Coking Coal Project. The five mining areas are predominantly of a semi-soft or semi-hard coking coal profile (SSCC/SHCC) and have the potential to produce a substantial percentage of the global seaborne coking coal market once developed individually as stand alone projects or as one super-complex.
The volumes of coal, if all mines reach full production, would represent a new major global supply that would materially increase the availability of SHCC/SSCC on the seaborne market. Potential production volumes indicative of:
- Mining Area 2 – 12 mtpa;
- Mining Area 1 – 12 mtpa;
- Dual longwall operations across Mining Areas 2 & 1 – 24 mtpa;
- Across all 5 Mining Areas (if all in production) – up to 49-55 mtpa.
The identified mining areas mapped above were defined following a Mining Areas Identification and Structural Interpretation Study based on the following criteria and key assumptions:
- Depth of Cover: >400m and <900m (JORC cut-offs)
- Geological Constraints: No mining in areas designated High Geological Complexity
- Environmental Constraints: No mining under the national park
- Target Seam: Includes either the B or D seam, both seams or the coalesced B/D Springwater Seam
- Seam Thickness: >1.8m
- Where interburden was <20m, the thicker seam was targeted and the thinner seam was assumed to be sterilised
- Lease Boundaries: Within the combined EPC 1110 and EPC 1275 lease area.
Hutton Coking Coal Project – Rail Options and Port
The Hutton Project is located adjacent to BMA (BHP Billiton Mitsubishi Alliance) Ridgelands Project that runs along the western boundaries of Hutton Coking Coal Project’s tenure. The Glencore Wandoan Project is also shown in the lower right corner of the image below, and is anchoring the proposed but deferred Surat Basin Rail Link (SBR). Valiant is investigating multiple options for rail solutions for the Hutton Coking Coal Project with options under review that include the development of its own Hutton rail link (Option 1) to join the Moura line via 180 km of new rail or alternatively to join the SBR via a spur line (Options 2 & 3) should the SBR project proceed in coming years.
Coal form the Hutton Project is likely to be shipped from the Wiggins Island Coal Export Terminal at Gladstone (WICET) under a custom terminal given the quantity of coal production possible anticipated from Hutton.
Valiant recently completed a Rail study to investigate the preferred rail transport solution to port for the Hutton Coking Coal Project. The result of the study was delineation and development of the Hutton Rail Project.
Hutton Coking Coal Project – Available Data Inventory
There have been approximately 800 wells drilled in this area with over 550 points of well data currently in the Valiant Resources regional geological model (as of October 2016) of the Hutton Coking Coal Project. The Company is continually updating its geological model and will continue to upgrade its resource as more data becomes available with a number of wells anticipated to be added later this year.
The image below shows the coverage of existing 2D seismic lines. The Company also has acquired 3D seismic surveys and as of May 2019, has incorporated these into the geological model.
The Company is continually updating its geological model and conducting further studies with the addition of recently acquired data to its substantial existing inventory of seismic, coal quality and drilling data across the resource area.
Valiant has conducted detailed studies and has numerous reports summarising available information and studies and activities that have been undertaken to define and continue to develop the Hutton Coking Coal Project.
Valiant completed two Scoping Studies in early 2017 on the two primary mining areas identified from the Mining Areas study (Mining Areas 2 & 1) undertaken with Palaris in 2015.
Click below for further information on the Hutton Coking Coal Project and Hutton Rail Project.