Duchess Paradise Thermal Coal Project

The Duchess Paradise (DP) Thermal Coal Project stands as a significant endeavor within the region, boasting an impressive 535 million metric tons (Mt) of JORC (Joint Ore Reserves Committee) Resources. With two accessible coal seams suitable for open-pit mining, the project currently holds 90 million metric tons (Mt) of reserves, specifically designated for the initial phase. Adopting a longwall mining approach, the project aims to produce export-grade thermal coal characterized by its 5500 kcal energy value, low sulfur content, and low volatility. Spanning a project area of 182 square kilometers across three tenements, its advantageous proximity to both a highway and a port, situated approximately 175 kilometers away from the Port of Derby, ensures convenient transportation logistics. Furthermore, the impending mining license application, expected to receive approval early next year, underscores the project’s progress and imminent development prospects.

The project’s comprehensive development plan and mining strategy have been meticulously formulated, incorporating a phased approach to maximize resource extraction. Phase 1, designed for open-pit mining, targets an estimated 3 million metric tons (Mt) of planned capacity. Meanwhile, Phase 2 and 3 envision an expanded capacity of 5 million metric tons (Mt) each, indicative of the project’s ambitious growth trajectory. With a total estimated cost of approximately AUD$65 per ton, the project’s feasibility is supported by the completion of 385 drills and an extensive high-level feasibility study, signifying the meticulous planning and preparation integral to its success.

Emphasizing efficiency and resource maximization, the Duchess Paradise (DP) Thermal Coal Project plans to adopt highwall mining for its initial phase. Strategically divided into Duchess and Paradise mining areas, the project outlines a detailed mining plan that involves tracing each coal outcrop and subsequently conducting deep coal mining in each designated area through long-arm equipment. Notably, the capacity for custom extension of the equipment mining arm allows for flexible adaptation, optimizing the exploitation of resources and streamlining mining operations within the project area.

The Port of Derby currently facilitates an annual throughput of 2 million metric tons (Mt) and possesses the capability to accommodate large-scale barges. As plans for its expansion unfold, the port is poised to transform into a versatile, multipurpose facility, catering to diverse industrial requirements. Notably, the Port of Derby’s strategic advantage in haul distance to China, enabling a shipping duration of merely 7 days compared to 10 days for other ports such as Guangdong and Newcastle, underscores its significance as a pivotal trade conduit. Moreover, the significantly lower shipping costs, projected to be at least 25% less than those incurred at the Newcastle Port, further solidify the Port of Derby’s competitive edge and appeal within the global coal export market.