Jellinbah Mine COAL SEAM GAS STATEMENT. For. Plains Extension MLAs. Jellinbah East Joint Venture. 31 March 2015

Transcription

1 Jellinbah Mine COAL SEAM GAS STATEMENT For Plains Extension MLAs Jellinbah East Joint Venture 31 March J e l l i n b a h R e s o u r c e s P t y L t d A B N L e v e l 7, 1 2 C r e e k S t r e e t, B r i s b a n e Q A u s t r a l i a G P O B o x B r i s b a n e Q A u s t r a l i a T e l e p h o n e F a c s i m i l e w w w. j e l l i n b a h. c o m. a u

2 COAL SEAM GAS STATEMENT 1. Introduction Jellinbah Group Pty Ltd ACN (Jellinbah) as Principal Applicant on behalf of the Jellinbah East Joint Venture is making mining lease applications (MLA) for the Plains Eastern and Western Extensions (together the Project). The MLA s cover the majority of that part of MDL185 held by the Joint Venture that lies on the South side of the Mackenzie River at Jellinbah Mine (Figure 1). This remnant portion of MDL185 consists of three separate areas, requiring three MLAs. MRAs318AP(2)(b); s318ap(2)(d) These MLA s are to provide for mine excavation and infrastructure for the Project. For the purposes of this document the MLAs are referred to as MLA 1, MLA 2 and MLA 3 and collectively as the Project MLAs as described below: Eastern MLA (MLA 1): 445.7ha North Western MLA (MLA 2): 25.79ha South Western MLA (MLA 3): 333.5ha The combined area of the MLAs (Project MLAs) covers an area of 805 hectares (ha) The Project is located on the South side of the Mackenzie River in the Central Highlands Regional Council area in Central Queensland, approximately 30 km north-east of Blackwater and 180 km west of Rockhampton - see Figures 1 and 2. There are two general components to the Project, namely: The mining of coal from MLA 1, east of ML80068 (Central North). The current plans for Central North assume coal mining commencing in 2023 with mining progressing to MLA 1 approximately 5 years thereafter. MLA 1 has an estimated resource base of 45.5 Million tonne (Mt) of PCI and Thermal coal within the Rangal Coal Measures The placement of overburden spoil and topsoil in areas to the west of ML80068 starting in

3 Figure 1: Jellinbah Mine Tenements 3

4 2. Jellinbah East JV Project Proponent The Project Proponent is the Jellinbah East Joint Venture, an unincorporated Australian joint venture whose beneficial owners as Tenants in Common are as shown in Table 1. Participant ACN % Jellinbah Group Pty Ltd Tremell Pty Ltd Marubeni Coal Pty Ltd Sojitz Coal Resources Pty Ltd Table 1: Jellinbah East Joint Venture - Participants The Principal Applicant is Jellinbah Group Pty Ltd. Jellinbah s head office is in Brisbane: Street Address: Level 7 Comalco Place 12 Creek Street Brisbane Qld 4000 Australia Postal Address: GPO Box 1374 Brisbane Qld 4001 Australia Phone: +61 (0) Facsimile: +61 (0) Jellinbah s wholly owned subsidiary, Jellinbah Mining Pty Ltd is the operator of the Jellinbah Mine. 3. Tenures The Jellinbah mine consists of the following mining leases for coal: Mining Lease Expiry Date ML July 2038 ML July 2038 ML April 2019 ML April 2022 ML July 2024 ML April

5 ML April 2042 ML June 2046 ML April 2042 In addition the JV holds Mineral Development Licence 185 (MDL185) to the north of the mine s Central Operation. The JV has also applied for mining leases 70445, 70446, and which covers the area of MDL185 north of the Mackenzie River. Of the three MLAs which comprise the Project one overlaps with Authority to Prospect (Petroleum) (ATP) 806 (held by OME Resources (QGC Pty Ltd)) - the north western side of MDL 185. The other two overlap ATP 1025 held by Bow CSG Pty Ltd (a subsidiary of Arrow Energy Pty Ltd). The southern boundary of the MLAs lies on the south side of the Mackenzie River and contiguous with ML held by Jellinbah Group Pty Ltd. Table 2: Overlapping Petroleum Tenures Tenure Held by: Made by: Expiry Date or Application Date ATP 806 OME Resources Australia Pty Ltd Ex: 30 April 2019 ATP 1025 Bow CSG Pty Ltd Ex: 28 February, 2021 Figure 2 shows the location of Jellinbah mine tenements. Environmental Authority number EPML (mining activities) for Jellinbah mine is the relevant EA for these MLs. MRA s318ap(2)(b) 5

6 Figure 2: Central North Extension Project Location 6

7 4. Coal Seam Gas To date only very minimal amounts of residual coal seam gas has been encountered in mining the MLs. That is not expected to change during mining of the MLAs. In the event that commercial gas operations are shown to be viable, it may be possible to access the deeper seams from the surface on the highwall side of the open cut. The Central Operation open cut footprint, even at completion of mining as envisaged with today s economics, is not large. Experience with the Moranbah Gas field suggests that deeper gas extraction wells can probably cover the area under the open cut, even if some access wells have to be placed in spoil or in ramps. Jellinbah has shared plans and discussed its operations with Arrow Energy and QGC. MRA s318ap(1)(a); s318ap(2)(c); s318dv; s318dw 5. Co-development Agreement Exploration Permit for Petroleum 1025, is held by Bow Energy Pty Ltd (Bow), part of which overlaps with the MLs, refer Figure 3. Jellinbah has consulted with Arrow Energy and shared plans of this area. Arrow has not expressed an interest in extracting CSG from within the ML area or within the area generally and does not currently hold an overlapping PL or PLA. The Parties have been working together and this is demonstrated by Arrow s consent to Jellinbah s Mackenzie North Mining Leases which are an extension of the Jellinbah mining operation. Arrow and Jellinbah have agreed terms for consent to the MLs which is to be provided after Jellinbah has lodged the MLAs. ATP806 held by QGC overlaps a portion of the MLs, refer to Figure 3. Jellinbah has consulted with QGC regarding its activities at the mine. QGC has no intensions in the foreseeable future to extract gas from within the area and has provided consent to the activities proposed within MLs Should commercial quantities of CSG be encountered or QGC which to conduct activities in the area, the parties will refer to the short form agreement reached as to the terms for negotiating a Coordination Arrangement. QGC and Jellinbah have agreed terms for consent to the MLs which will be requested after Jellinbah has lodged the MLAs. MRA s318ap(1)(a) 7

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