New Lenton

 

Key Information

Product:  Coking/PCI (pulverised coal injection)/thermal coal
Mining method:  Open cut
Location: Bowen Basin, Queensland (ML 70337, ML 70456, EPC 865, EPC 766, EPC 1675)
Reserves and Resources: See our latest ASX JORC Announcement
Development status:  Environmental Impact Statement (EIS) commenced


Overview

The New Lenton Project is an open-cut coal resource located within the northern part of the Bowen Basin. The project consists for the most part of the Rangal coal measures, namely the Leichhardt and Vermont seams. There is an existing mining lease on the project, ML70337, which was granted in 2008, with three additional EPC’s (Exploration Permit – Coal) that extend beyond the mining lease boundary. The Environmental Authority associated with ML70337, allows for mining of up to 2.0 Million tonnes per annum (Mtpa) of coal.

In 2011, 10% of the project was sold to Formosa Plastics Group subsidiary company Mai-Lao Power Corporation.

Exploration of the deposit has included open hole drilling plus 2D and 3D seismics to help ascertain the structure of the deposit. Coal quality analysis has been undertaken to better understand both the Rangal coals and Fort Cooper coal measures that are present within the open cut footprint. Pilot-scale coke oven testing has been successfully carried out on both the Vermont and Burton Rider seams and the Lenton geological model was updated in February 2012.  The model is currently in the process of being updated again to include additional 3D seismic data as well as a suite of simulated quality information.

Mine planning, including geotechnical considerations, is underway. The company is exploring the option of an expansion of the footprint (MLA70456). This would allow production to ramp up to 3.5Mtpa. The project will provide New Hope with access to the coking coal market. 


Environment

The EIS Terms of Reference was approved in June 2014 with the baseline studies now being completed (MLA70456). The EIS is planned for submission in 2018. Studies include dry and wet season flora and fauna surveys, soil surveys and background noise surveys. The site is predominantly cattle grazing country. As with all New Hope projects, full scale life-of-mine planning has been developed including the proposed mine rehabilitation plan to ensure that the land is returned to productive uses. 


Community

The site is based on freehold land with a total of two landholdings. Exploration activities have been carried out with the cooperation of the landholders. Cultural heritage surveys have also been conducted in consultation with the Barada Bana People and the Widi of Nebo, formally Wiri People Core Country. 


Geology

The Lenton Deposit for the most part consists of the Rangal coal measures, which is the uppermost coal bearing sequence in the Bowen Basin. The Rangal coal measures are mined at the adjacent Burton Coal Mine and nearby Hail Creek mine to the north east. The Lenton Deposit contains three main seams – namely the Burton Rider seam, the Leichhardt seam and the Vermont seam.