Clara Resources Australia Ltd. said it has completed its acquisition of Renison Coal Pty Ltd. Clara is now the sole owner of the Ashford coking coal project in the Northern Tablelands of New South Wales, Australia.
“This is a landmark transaction in firming up the future of the Ashford coking coal project,” said Clara Resources CEO, Peter Westerhuis. “With what we anticipate to be very strong project economics, ownership of 100% of the project allows Clara vastly more flexibility in dealing with financing, permitting and on-going project management issues. The outlook for coking coal remains strong and the quality of Ashford is well placed to benefit from the forecast robust market conditions.”
During March, Clara released a scoping study for the Ashford coking coal project, which provides an early-stage assessment of the technical and commercial viability for development and operation of the Ashford project.
The Ashford deposit was mined by opencut methods between 1958 and 1985, providing raw coal to the adjacent Ashford power plant. Mining ceased when the power plant closed. The distance from export facilities and a lack of transport infrastructure limited development of the deposit for the export market.
The scoping study examined the viability of developing the project as a coking coal mine and exporting product through the Port of Newcastle. The study identified an economic development pathway for the project, based on the data currently available, coal pricing forecasts and defined mining, processing and transportation assumptions.
