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Construction is expected to start in April with completion anticipated in December, Cokal said on Thursday February 13.

“The [definitive feasibility] study has confirmed that the BBM mine and associated facilities and transport systems can be developed as a low capital cost operation with moderate to mid-range operating costs,” Cokal said.

Total estimated development capital required for BBM to deliver an output rate of 2 million tpy is $75 million. This would include developing a coal-handling preparation plant, a haulage road and all necessary transport and site infrastructure, its statement noted.

Operating costs, on the other hand, are estimated at an average of $82 per tonne fob for the first five years.

BBM has total JORC-compliant coal resource of 261 million tonnes, comprising 90% coking coal and 10% pulverised coal injection (PCI) material.