Xstrata Adds Significant Coal Reserves

During January, Xstrata Coal announced that its total managed coal resources increased by 2.1 billion mt, comprising 1.6 billion mt of measured and indicated resources and 500 million mt of inferred resources. Recoverable coal reserves increased by 1.2 billion mt. Included in these figures is a substantial increase in the coal resource at the Wandoan project to more than 2.5 billion mt, an increase of approximately 1.4 billion mt, together with the declaration, for the first time, of a coal reserve of 540 million mt.

At 2008 mining rates, the new total reserve figures of 18.7 billion mt equate to 28 years of production. “This significant increase in reserves demonstrates the long term strength of our current operations, supported by substantial resources which will ensure our continued growth,” said Peter Freyberg, chief executive, Xstrata Coal.

The recently completed prefeasibility study of the Wandoan project in Queensland’s Surat Basin, delineated more than 540 million mt of coal reserves and an increase of more than 470 million mt in measured and indicated coal resources. “The successes achieved in the exploration, geological and mining studies of the Wandoan project once again confirms that Xstrata Coal is well positioned to meet future global energy needs and market demand for quality thermal coal,” said Freyberg. The Wandoan project is expected to deliver more than 20 million mt/y of thermal coal.

As featured in Womp 2009 Vol 02 - www.womp-int.com