Brazil based mining giant Vale has announced its plans to co-fund and construct a new $US875 million coking coal mine in central Queensland.

 

The Eagle Downs project, to be co-funded by Aquila Resources, received regulatory approval from the Queensland State Government. The project is expected to generate around 400 jobs when operational.

 

When in production the mine will be an underground multi seam longwall mine, producing up to 5.1Mtpa and an average of 4.5Mtpa of hard coking coal from one longwall over the initial 10 years of production.

 

The Project involves proposed construction, development and operation of an underground longwall hard coking coal mine in Queensland’s resource-rich Bowen Basin.

 

The 50-50 joint venture will bring the total value of current resources and energy infrastructure investment to $430 billion.

 

In partnership with Aquila Resources, Vale is already working on the expansion of the Integrated Isaac Plains project and considering a further major coal new project, also in Queensland. 

 

Commencement of construction of the Project is subject to  Joint Venture participant approval of the development of the mine and of the relevant budgets for the associated construction costs.