TerraCom partners with Wintime Energy to develop Queensland coal project
12/08/2024 14:33:00
TerraCom (ASX:TER) has signed a cooperation agreement with Chinese energy giant Wintime Energy Group (SHA:600157) to jointly develop and operate the Moorlands Thermal Coal Project in Queensland, Australia.
The deal highlights TerraCom's role as a full-service development and mining services partner for Wintime, expediting approvals and commercialization of the Moorlands Project. Additionally, TerraCom's Blair Athol mine will be utilized as a processing and logistics hub, generating a long-term revenue stream alongside ongoing Blair Athol production.
Key Points:
- TerraCom and Wintime will collaborate to finalize project agreements by December 31, 2024.
- Both companies plan to explore joint development opportunities in complementary markets and industries, including renewables and mineral resources.
- Wintime, a Shanghai Stock Exchange listed company with a market capitalization of approximately AUD $5.94 billion, possesses comprehensive energy expertise and a portfolio of coal assets across China.
About the Moorlands Project:
- Located in Queensland's Bowen Basin, 14 kilometers from TerraCom's Blair Athol mine.
- Initial proposal targets 1.9 million tonnes per annum (mtpa) run-of-mine production with a 25-year mine life and potential for expansion to 4 mtpa.
- Subject to mining lease grant and regulatory approvals.
- The project holds a 378 million tonne JORC resource, supporting a potential open-cut mining operation to supply Wintime's coal-fired power plants in China.
- TerraCom will provide development, management, mining services, logistics, and processing services to the mine gate.
- Blair Athol's existing infrastructure will be leveraged to create a dual processing and logistics hub for both mines, maintaining Blair Athol's production.
- First coal production from Moorlands is targeted for FY26.
TerraCom's Managing Director, Danny McCarthy, commented on the partnership:
"This collaboration unlocks development and operational synergies for both companies, extending the horizon of mining operations at Blair Athol and the regional benefits. TerraCom looks forward to working strategically with Wintime in Australia and globally to explore complementary development opportunities."
This agreement signifies a significant development for TerraCom, positioning the company for broader growth in the resources sector.