It will cost at least AUD 30 million more to get started, but partners Macarthur Coal and Gloucester Coal are planning for first production before the end of this year from their Middlemount project in Queensland’s Bowen Basin.

The companies say they’ll start with an output target of 1.76 million tonne split roughly one third PCI product and the rest semi hard coking coal aiming to push production to a gross of 5.4 million tonne per annum in 2013.

The companies said that the price tag to open Middlemount has climbed to AUD 500 million, because of increased water management and mining contract costs but the upside is a 68% lift, to 96 million tonne in JORC compliant recoverable reserves estimates.

Middlemount has been on Macarthur’s development plans for a number of years and Gloucester became involved through a buyout of equity in the project from former Macarthur partner, Noble Group.

(Sourced from coalportal.com)