What is the story about?
What's Happening?
Yari Minerals Limited, a Queensland-based explorer, has significantly increased its inferred resources for the Rolleston South Coal Project by leveraging data from coal seam gas wells drilled by State Gas. The inferred resources have grown by 91% to 151 million tonnes, and further increased by 26% to 190 million tonnes. This expansion is facilitated by a data sharing agreement with State Gas, which provides valuable geological data without additional costs. The Rolleston South Project is strategically located in the Bowen Basin, close to major coal operations. Yari Minerals plans to conduct metallurgical test work and pursue regulatory approvals for a maiden drilling campaign by the end of 2025.
Why It's Important?
The expansion of Yari Minerals' coal resources underscores the importance of data sharing in reducing exploration costs and enhancing resource models. This development is significant for the coal industry in Queensland, which is a major contributor to the state's economy. The increased resource base positions Yari Minerals to capitalize on export opportunities, particularly given the proximity to critical infrastructure like the Blackwater rail system and the Port of Gladstone. The coal sector remains vital for Queensland, contributing billions in royalties, and the proactive approach of the state government in granting mining leases further supports industry growth.
What's Next?
Yari Minerals is focused on increasing the confidence and size of its coal resource and aims to apply for a mining lease by 2026. The company plans to conduct feasibility studies concurrently, aiming for a shovel-ready project. The demand for coal, particularly metallurgical coal, is expected to remain strong, driven by global steel production needs, especially in India. Yari Minerals is well-positioned to meet this demand, leveraging its strategic location and access to established supply chains.
Beyond the Headlines
The collaboration between Yari Minerals and State Gas highlights the potential for cross-industry partnerships to drive resource development. This approach not only reduces costs but also accelerates project timelines, offering a model for other resource companies. The integration of gas data into coal exploration reflects a broader trend of utilizing advanced technologies and data analytics to optimize resource extraction.
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