Aquila seeks partner for Eagle Downs coking coal project

Aquila Resources is looking for a co-investor for its 50% interest in the Eagle Downs hard coking coal project in the Bowen Basin.

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The Australian miner said in its annual general meeting on Friday November 30 that its share of direct capital costs to achieve the first 100,000 tonnes of production is approximately A$640 million ($667 million).

The pre-production operating costs are approximately A$222 million, it added.

The miner also expects to secure a debt-financing package in order not to raise any new equity.

“Aquila has received significant interest from parties seeking to participate in Aquila’s share of the project.

“Several major financial institutions have expressed interest in providing debt financing,” the miner said in a presentation.

First production from Eagle Downs is expected in 2016 with 4.5 million tpy of saleable output in the first 10 years. It is expected to see a run rate of up to 8 million tpy after the second longwall operation is commissioned.

Brazil’s Vale owns the remaining 50% of Eagle Downs.