JOGMEC Signed the First Joint Venture Agreement
for Thermal Coal Exploration in Bowen Basin, Australia.
Japan Oil, Gas and Metals National Corporation (JOGMEC, President: Hirobumi Kawano) is pleased to announce that it entered into a new agreement to jointly explore coal in the Kilmain Project Area on July 14th, 2014, with Allegiance Coal Limited, an Australian coal exploration company.
JOGMEC has made one JV in Australia since JOGMEC commenced coal JV scheme last Japanese fiscal year. This is the second JV for JOGMEC in coal exploration and the first JV in the Bowen Basin, which is highly prospective for high quality coal resources.
The Kilmain Project Area (Kilmain) is situated in the southwest part of the Bowen Basin, which is highly prospective for high quality coal resources, in the southeast of Queensland. New discovery of high quality thermal coal is expected through a new JV exploration.
In the recent energy situation in Japan, coal fired power generation has been anticipated as one of the main energy sources. If the Kilmain Project JV, leads to future coal mining development, it will contribute to a stable supply of high quality thermal coal to Japan.
Kilmain consists of two exploration tenements （about 56km2), in which some coal seams have been already identified. In the east of Kilmain area, BHP Billiton has been conducting coal exploration as the Togara South project, while in the west of Kilmain, Bandanna Energy has been conducting exploration in the Arcturus project. Glencore-Xstrata is operating Rolleston coal mine in the south of Kilmain.
JOGMEC will have the right to earn 30% participating joint venture interest in the project by completing the payment of A$2.25 Million as an exploration expenditure for the first two years. JOGMEC may elect to earn a further 10% (40% in total) participating joint venture interest by adding A$0.75 Million over the subsequent 12 months. JOGMEC can transfer its position in the joint exploration agreement including its acquired interest to a Japanese company during the term of the agreement.
Allegiance Coal and other previous tenement holders have completed about 10 drillholes to date, by which some coal seams have been identified in the Kilmain area. Especially, the southwest part of the Kilmain area has potential for high quality thermal coal minable by opencut.
It is a coal exploration and development company listed on the ASX (Australian Stock Exchange) and headquartered in Sydney, Australia. It owns twelve coking coal or thermal coal exploration projects in Queensland. All the current tenements in the Kilmain project are possessed by Allegiance Coal Limited through Mineral and Coal Investments Pty Limited, a wholly owned subsidiary of Allegiance Coal Limited.
Location of Kilmain project.
The inquiry about this page.
Coal Exploration Division, Development Exploration DepartmentArai and Muramoto FAX: +81-3-6758-8086
Public Relations Division, Administration DepartmentNishikawa FAX: +81-3-6758-8008