Coal news and updates

Rinehart partner International Coal ups Bundaberg resource by 33pc

BILLIONAIRE mining magnate Gina Rinehart and her joint venture partner in a promising Queensland coal project have announced that the size of the resource they have identified near Bundaberg has increased by 33 per cent.

International Coal told the ASX today that the results of recent drilling at its Bundaberg project had yielded an increased resource of 37.9 million tonnes.

An exploration target of up to 45 million tonnes remains as a result of the new drilling.

The in-ground value of the coal is likely to be measured in billions of dollars, although this does not guarantee that International Coal and Mrs Rinehart will be able to fund construction of a mine.

However, the project may attract interest from Chinese companies, especially in light of last week's $66 million takeover bid by Beijing's China Kingho Energy for Queensland coking coalminer Carabella Resources.

Mrs Rinehart's company, Queensland Coal Investments, earned the right this year to acquire a 25 per cent stake in the Bundaberg project after spending more than $1.5 million on exploring tenements.

QCI has an agreement under which it can ultimately acquire up to 51 per cent of the project.

Mrs Rinehart's joint venture with International Coal is one of several she has secured in Queensland over the past two years, as she plans to build on the fortune she has made in the West Australian iron ore industry.

Source: The Australian