Endocoal has followed up a major Resource increase at the Rockwood Coal Project with confirmation that the recently discovered major coal deposit is suitable for use in Pulverised Coal Injection applications.

On October 31, Endocoal upgraded the resource for Rockwood, in Queensland’s Bowen Basin, by 505% to 312.5 million tonnes after intersecting the Moranbah Coal Measures.

A number of studies conducted on coal from Rockwood indicate that it could be classed as anthracite, which would fit into the PCI market.

There is also scope to produce a lower ash, better quality PCI coal product through selection of specific seams and appropriate washing strategies and coal blending techniques, optimising the mining and yield outcomes for the overall deposit.

Other coal mined can be sold into the anthracite market as a high energy product.

Increasing internal demand for anthracite coal from traditional sources of the product, such as Vietnam, is limiting international supply.

Difficulties meeting quality requirements and increased freight costs are also impacting the supply of anthracite to the growing Asian market.

This provides an opportunity for Endocoal to identify the best value in use outcomes for its coal, to maximize Rockwood’s overall return.

(Sourced from www.proactiveinvestors.com.au)