(MENAFN- ProactiveInvestors - Australia) NuCoal Resources (ASX: NCR) has reported that the Foreign Investment Review Board (FIRB) has approved an investment by Mitsui Matsushima International Pty Ltd (MMI) into the company's Doyles Creek Coal Project (EL7270).
NuCoal had been working on securing an investment deal for over a year, with the investment a milestone for the Doyles Creek Underground Coal Project and Training Mine Facility.
Doyles Creek contains a 512 million tonne JORC Measured, Indicated and Inferred Resource of premium quality semi soft coking and thermal coal, with the project located in the Hunter Valley region of New South Wales.
The key terms of the joint venture farm-in agreement are:
- MMI has the right to earn up to a 10% equity in the Project by spending up to
A$40m on the Project.
- Following completion of a Bankable Feasibility Study, MMI will have an option to purchase an additional interest of up to 10% in the Project at a pre-determined valuation which is dependent on the level of end-user offtake commitment made at the time the option is exercised.
- MMI will be entitled to exclusively introduce the coal from the Project to customers in Japan.
Mitsui Matsushima International Pty Ltd is a subsidiary of Japanese company, Mitsui Matsushima Co. Ltd, which focuses on procuring coal from Australia, Canada and other locations in order to meet ever-increasing domestic demand.
Doyles Creek progress
During the December 2012 quarter NuCoal undertook significant work to construct Stage 1 of the Training Facility at Doyles Creek.
The first training, Certificate IV in Underground Coal Operations, will be delivered from the Training Facility mid February 2013 by registered training provider 'Australian Institute of Mining & Safety'
The Development Application for Stage 2 of the Facility, a simulated underground mine training facility is awaiting approval by Singleton Council. Additional studies have been undertaken to ensure compliance with Council requirements.
The Stage 2 facility, if approved and constructed, would provide a simulated underground environment to allow training to be delivered prior to the underground mine being constructed to address the need for suitably skilled, sustainable and future focused workforce.
Earthworks close to the facility will provide the opportunity for machinery operation courses.
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.