Dual bulk commodity developer NSL Consolidated has received exploration approval for the first of its four thermal coal tenements in Queensland’s Eromanga Basin. The four tenements cover 2585sqkm in southwest Queensland and are adjacent to similar thermal coal projects of up to 1.2 billion tonnes owned by East Energy Resources and International Coal.
NSL says the combined exploration target of its tenements is between 6.6 and 18.7 billion tonnes. The company is continuing to work towards gaining approval for two of the other tenements by October.
NSL’s managing director Cedric Goode says the excellent potential of the thermal coal deposits in the region is mainly hosted in coal bearing sequences of the Winton formation. “This is the main targeted formation over two of our tenements which contains some 15 coal seams from surface to 130 metres at an average width of 3-5 metres per seam.”
There is significant local infrastructure accessible to the company, with power, water, sealed roads and rail lines nearby. NSL says there are potential transport links via the East Energy project rail line to port as well as the southern rail link to Brisbane port.
The company’s other main project is its Kurnool iron ore plant in India, which is ramping up capacity after a successful staged commissioning in June. The ramping up of production will target an annual capacity of 200,000 tonnes by October and 400,000 tonnes by mid-2013.