August 22, 2014
Moreton Resources Limited has assured the ASX it will continue to investigate and review how best to progress its Kingaroy coal mine project, despite negative correspondence from Stanwell.
In a statement to the ASX today, Moreton CEO Jason Elks said he had received a letter from Stanwell Corporation Ltd’s senior legal counsel on August 18 stating (among other things) that “in light of the coal resources already owned by Stanwell, there is no reasonable prospect of Moreton Resources selling coal to the Tarong or Tarong North Power Stations (regardless of their ownership)
during their remaining operating life.”
“Whilst (Moreton Resources) acknowledges this correspondence, including the assertion made in respect of a future owner, the company will continue to consider and where appropriate advance its strategic agenda, having particular regard to the Queensland Government’s agenda under “Stronger Choices” which we understand is seeking to minimise costs and maximise outcomes for Queenslanders,” Mr Elks said.
Moreton also advised the market that additional coal quality results have been returned from analysis with Bureau Veritas Australia Pty Ltd.
“These results are consistent with the previous results showing that the coal can be washed down to approximately 20 per cent ash at around 75 per cent recovery and that therefore our target ash of 28 per cent is eminently achievable at higher recoveries,” Mr Elks said.
“This is another positive step in the review of the Kingaroy Project and MRV proposes to engage an independent engineering consultant to review and determine the practical implications of the laboratory analyses.
“As previously stated in our Mine Concept Study (release dated August 8) the company continues to make approaches to potential partners that could benefit from this, including the appropriate levels of government and potential future owners of the Tarong Power Generation assets.”