(MENAFN - ProactiveInvestors - Australia) OGL Resources (ASX: OGL) is moving to negotiate a commercial access/operation agreement for exclusive use of a 1.5 million tonne per annum coal export facility at the Brisbane Port to accommodate production from the Ebenezer Mine.
This is an important advancement in bringing the company closer to becoming Australia's next independent coal producer and exporter of high quality thermal coal to the overseas market.
An access/operation agreement will further enable OGL to continue with its plan to re-open the Ebenezer Mine and produce a high quality thermal coal product for the export market.
OGL is aiming to get its product to market within 12 months.
The company participated in a Feasibility Study to evaluate the economic feasibility of the handling, stockpiling and ship loading of an initial 600,000 tonnes increasing to 1.5 million tonnes of coal per annum through existing port infrastructure at the Port of Brisbane.
The study has been completed and confirms the proposed development of this coal handling facility is economically and practically feasible.
It also confirms the port facility can support handling, storage and shipping up to 1.5 million tonnes per annum of coal through the existing facility for low capital cost and minor civic and mechanical improvements onsite.
OGL will now work to develop and execute a commercial access/operation agreement for exclusive use of the facility.
OGL has an exclusive agreement to purchase two advanced coal tenements in Southeast Queensland within 90 kilometres of the Port of Brisbane.
The tenements host JORC Probable Reserves of 13.7 million tonnes and JORC Resources of 308.2 million tonnes high grade thermal coal (6,700kCal/kg).
Providing exploration upside, an additional 360 to 370 million tonne exploration target of low to moderate ash thermal coal has been outlined.
A mining lease has been granted and environmental approvals are in place with no impediments to immediate mining.
OGL plans to recommence mining from the Ebenezer Mine at a rate of 600,000 tonnes per annum within 12 months, expanding to 1.5 million tonnes per annum within two to three years.
Phase 2 will see further expansion to 3-plus million tonnes per annum from year four to five from the Bremer View MDL 172.