Complementing the Group’s extensive mining and exploration background is our experience in research, business and financial evaluation and administration
The Group is working in Brunei exploring for coal in the country. We have an office located in Bandar Seri Begawan where our team of geologists are based and where they plan their field work and analyse data collected. The exploration program is targeting export quality thermal coal and lignite deposits and has been conducted in an environmentally friendly manner. To date, a significant amount of surface exploration, coal quality, geological modelling and seismic analysis has been completed on the project.
The Group has four coal exploration permits in New Zealand’s south island where our team is exploring for coking and thermal coal.
The largest of the New Zealand projects is the Hawkdun project located in North Otago where the Group holds title to a large lignite deposit (700+ Mt) at prefeasibility stage. The project has good results for use as a low cost feedstock for coal to fertiliser and coal to liquid plants. Infill drilling at the project is planned for 2015.
Urea fertilizers and diesel fuels produced from coal are high value high margin products that are in large demand in New Zealand. New Zealand currently consumes approximately 750,000 tonnes of urea each year, most of which are imported from overseas and used by farmers to increase production in the fast growing fresh produce, livestock and diary industries.
The Victoria Range coal project is located south east of Reefton and exploration work has shown promising results with 70 coal outcrops found and preliminary laboratory analysis is showing high calorific value coals with thermal, coking, PCI and boutique coal with high carbon properties. Drilling is planned in the 2014-15 field season.
The Mt Linton and Piko Piko coal projects are located in the Ohai area, Southland where the program is focused on targeting geological formations known to contain high quality thermal coal with low ash and sulphur. High yielding oil shales are also outcropping within the licence areas.
Malaysia, Indonesia, Africa & Middle East
In addition to our present exploration projects, the Group is active in project generation, research and identifying coal potential in the Asia Pacific, Africa and Middle East. The Group has built up a database of the geology of these areas and are seeking to utilise our exploration experience and knowledge to generate new projects in the region.
The Group provides selective consultation to third parties on coalfields where the Group has expertise. Some of the major projects which Pegnel Resources have worked on include managing the technical due diligence and financial evaluation of the Maules Creek coal project which was put on sale by Rio Tinto in 2009.
Our more recent consultation work includes providing the technical and corporate advice on the A$2.4 billion acquisition of Centennial Coal Limited which involved technical assessment and valuation of 9 operating mines and 5 coal project areas.