EX-96.1 26 ex961.htm EX-96.1 ex961
ex961p1i0.jpg
 
Coronado Global Resources Inc. (“Coronado”) Statement of Coal
Resources and Reserves for the Curragh Mine Complex in Accordance
with the JORC Code and United States SEC Regulation S-K 1300
 
as of
December 31, 2021
Bowen Basin
Queensland, Australia
February 2022
 
 
 
 
Page 2 of 76
SIGNATURE PAGE
Effective Date of Report:
December 31, 2021
Qualified Person(s) Preparers:
/s/ Barry Lay
 
Name: Barry Lay
Managing Director of Resology Pty Ltd (Prepared Sections: 1.3, 1.4, 1.6,
 
5.2, 6, 7.1-7.3, 8, 9,
10, 11)
/s/ Paul Wood
Name: Paul Wood
Senior Life of Mine Planner – Coronado Curragh Pty Ltd (Prepared
 
Sections: 1.1, 1.2, 1.5,
1.7, 1.8, 1.9, 1.10, 1.11, 2, 3, 4, 5, 7.4, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25,
26)
Signature Date:
February 21, 2022
 
 
Page 6 of 76
FIGURES (IN REPORT)
13
15
21
22
23
25
27
28
33
33
34
35
47
47
48
50
52
61
63
63
64
65
TABLES (IN REPORT)
8
8
9
Table
 
1-4: Life Of Mine tonnage, Profit & Loss (P&L) before tax and Earnings
 
Before Interest Tax
Depreciation & Amortization (EBITDA)
10
16
16
25
26
31
37
38
41
43
43
44
44
 
46
49
53
56
57
65
68
69
69
70
72
 
 
 
 
 
Page 7 of 76
1
Executive Summary
1.1
 
Property Description
This
 
report
 
provides
 
a
 
statement
 
of
 
coal
 
Resources
 
and
 
coal
 
Reserves
 
for
 
the
 
Curragh
 
mine
 
in
 
central
Queensland, Australia, as defined under Subpart 1300 of Regulation S-K (Regulation S-K 1300) promulgated by
the
 
United
 
States
 
Securities
 
and
 
Exchange
 
Commission
 
(SEC)
and
 
the
 
Australasian
 
Code
 
for
 
Reporting
 
of
Exploration Results,
 
Mineral Resources and
 
Ore Reserves
 
(JORC Code 2012).
 
This report was
 
also prepared
in
 
accordance
 
with
 
the
 
Australasian
 
Code
 
for
 
Public
 
Reporting
 
of
 
Technical
 
Assessments
 
and
 
Valuations
 
of
Mineral Assets (VALMIN
 
Code 2015).
Coal Resources and coal Reserves are herein reported and rounded
 
to millions of metric tonnes (Mt).
 
The
 
Curragh
 
mine
 
is
 
located
 
approximately
 
200
 
kilometres
 
by
 
road
 
west
 
of
 
Rockhampton
 
and
 
approximately
14 km
 
north
 
of
 
the
 
town
 
of
 
Blackwater
 
(refer
 
to
)
 
within
 
the
 
Central
 
Highlands
 
Regional
 
Council,
Queensland Australia. The coordinates of CPP1 are 688,561
 
East, 7,400,933 North in the AMG66 grid system.
The Property
 
is comprised
 
of approximately
 
25,586 total
 
hectares of
 
Mining Leases
 
and Mineral
 
Development
Licences.
 
Underlying
 
these
 
Resource
 
Authorities
 
are
 
various
 
forms
 
of
 
cadastral
 
land
 
with
 
different
 
ownership
arrangements as detailed in section 3.2.
 
Coronado is able to access all the
 
land through either direct ownership
or signed agreements.
1.2
 
Ownership
Curragh
 
commenced
 
operations
 
in
 
1983
 
and
 
was
 
formerly
 
controlled
 
by
 
a
 
consortium
 
of
 
companies.
 
These
companies were bought out by
 
Arco Australia who later sold
 
the Property to Wesfarmers. Coronado acquired the
Property from Wesfarmers in 2018. Further details
 
on ownership are presented in Sections 3.2 to 3.4
1.3
 
Geology
The Curragh mine
 
extracts
 
seams in
 
the Rangal Coal
 
Measures including the
 
Cancer, Aries, Castor, Pollux, Orion
and Pisces seams. These
 
coals are suitable for
 
beneficiation to metallurgical and
 
thermal products. Some seams
are suitable to bypass direct to product.
 
Further details on the geology of the operations are provided in Section
6.
1.4
 
Exploration Status
The Property has been extensively explored,
 
largely by drilling open chip holes
 
as well as core holes, downhole
geophysics is used
 
extensively.
 
The majority of
 
the data was
 
acquired or generated
 
by previous owners
 
of the
Property.
 
These
 
sources
 
comprise
 
the
 
primary
 
data
 
used
 
in
 
the
 
evaluation
 
of
 
the
 
coal
 
Resources
 
and
 
coal
Reserves on the Property.
 
Ongoing exploration has been carried out by
 
Coronado since acquiring the Curragh mine.
 
The exploration data
acquired by Coronado has been
 
consistent with past drilling activities. . Further
 
details on past exploration efforts
are discussed in Section 7.
1.5
 
Operations and Development
Due
 
to
 
its
 
coal
 
reserve
 
and
 
seam
 
characteristics,
 
Curragh
 
operates
 
using
 
conventional
 
dragline
 
and
 
truck
excavator
 
methods
 
typical
 
throughout
 
the
 
Bowen
 
Basin.
 
The
 
model
 
was
 
therefore
 
generated
 
with
 
these
constraints in mind.
 
The mine produces coal that is suitable for the
 
metallurgical and thermal coal markets.
There are
 
two coal
 
preparation plants
 
at Curragh,
 
CPP1 and
 
CPP2. CPP1
 
has a
 
nameplate capacity
 
of 1,100
raw
 
tonnes
 
per
 
hour
 
(tph).
 
CPP2
 
has
 
a
 
nameplate
 
capacity
 
of
 
1,200
 
tph
 
but
 
is
 
capable
 
of
 
1,350
 
tph
 
when
processing
 
selected
 
feed
 
types
.
 
Processes
 
are
 
typical
 
of
 
those
 
used
 
in
 
the
 
coal
 
industry
 
and
 
are
 
in
 
use
 
at
adjacent coal processing plants. Further
 
details on coal processing and
 
infrastructure are discussed in Sections
14 and 15 respectively.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Page 8 of 76
1.6
 
Mineral Resource
Mineral Resources,
 
representing in-situ coal in which a portion of Reserves are derived, are presented below.
 
A
coal Resource
 
estimate, summarized
 
in
, was
 
prepared
 
as of
 
December
 
31,
 
2021,
 
for the
 
Curragh
Mine. Further details on our determination of resources
 
is presented in Section 11
 
.
Table 1-1: Coal Resources Summary as of December 31, 2021
Area
Measured
Indicated
Meas + Ind
Inferred
Total
Ash%
Sulphur%
VM%
Incl in Reserves
255
26
281
2
283
17.3
0.55
19.0
Excl of Reserves
234
103
337
43
380
21.2
0.56
18.8
>15:1
94
81
175
100
275
17.0
0.39
18.0
Total
583
210
793
144
937
18.8
0.51
18.6
 
Notes
 
(i)
 
Total Resource tonnes
 
are inclusive
 
of reserve
 
tonnes since
 
they include
 
the in-situ
 
tonnes from
 
which recoverable
 
coal Reserves
are derived.
(ii)
 
Coal Resource tonnes are reported on an insitu
 
basis at 5.3% moisture,
 
qualities are reported on an aid dried basis.
(iii)
 
>15:1 opencut strip ratio are the estimated underground
 
Resources.
(iv)
 
The numbers have been rounded and the
 
totals may not add up.
(v)
 
If the Resource was reported exclusive of Reserves
 
then the total would be 655Mt.
(vi)
 
Total Resource of 937Mt is inclusive of reserves.
1.7
 
Mineral Reserve
Reserve
 
tonnage
 
estimates
 
provided
 
herein
 
report
 
coal
 
Reserves
 
derived
 
from
 
the
 
in-situ
 
Resource
 
tons
presented in
 
proven and
 
probable run
 
of mine
 
(ROM) coal
 
Reserves
 
are highlighted
 
in
,
these were derived from the defined in-situ coal Resource
 
considering relevant processing, economic (including
technical
 
estimates
 
of
 
capital,
 
revenue,
 
and
 
cost),
 
marketing,
 
legal,
 
environmental,
 
socioeconomic,
 
and
regulatory
 
factors
 
as
 
well
 
as
 
legal,
 
environmental,
 
socioeconomic,
 
and
 
regulatory
 
factors.
 
The
 
equivalent
marketable Reserves are highlighted in
Table 1-2: ROM Coal Reserve Summary as of December 31, 2021 (Mt)
Curragh
 
Proven
Probable
Total
Coal Quality of Reserve inclusive of loss and dilution (adb)
Mt
Mt
Mt
Ash (%)
TS (%)
VM (%)
ROM
243
23
266
28.4
0.5
16.6
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Page 9 of 76
Table 1-3: Coal Reserve Summary (Marketable Sales Basis) as of December 31, 2021
 
(Mt)
Demonstrated Coal Reserves
(Wet Tons, Washed
 
or Direct Shipped, Mt)
Quality (ad)
Type
By Reliability Category
Proven
Probable
Total
Ash%
Sulphur%
VM%
CV Kcal/kg
Metallurgical
149
13
162
8.4
0.4
19.9
Thermal
49
5
54
17.7
0.4
16.3
6,286
Total
198
18
215
10.7
0.4
19.0
 
Notes
a)
 
Curragh's Reserves,
 
as stated, are 100 percent of the site
 
Reserves,
 
including all Reserves in the Curragh Project
.
b)
 
ROM Coal Reserves have been stated on a 7.5%
 
Moisture basis.
c)
 
Marketable Reserves are stated on a product moisture basis of
 
11%.
d)
Coal qualities are reported on an air-dried
 
basis
,
CV is reported on a gross as received basis.
e)
Typical marketable coal products produced range from low-ash, hard coking
 
coal to mid-ash semi-hard coking coal, a variety of
low-volatile Pulverised Coal Injection (PCI) products ranging
 
from low to high ash, and thermal coal
f)
Most tonnes and quality information have been
 
rounded, hence small differences may be present
 
in the totals.
 
g)
CV is only reported for thermal coal.
In summary,
 
Coronado controls
 
a total
 
of 215
 
Mt (moist
 
basis) of
 
marketable coal
 
Reserves,
 
at Curragh,
 
as of
December 31,
 
2021.
 
Of that
 
total, 91
 
percent are
 
proven, and
 
9 percent
 
are probable.
 
Further
 
details on
 
our
determination of reserves is presented in Section 12.
1.8
 
Capital Summary
Curragh’s capital schedule assumes
 
that major equipment rebuilds/replacements
 
occur over the course of each
machine’s remaining assumed operating life and includes development
 
capital for infrastructure and preparation
of
 
new
 
open
 
pit
 
design,
 
access,
 
and
 
entry.
 
Replacement
 
equipment
 
was
 
scheduled
 
based
 
on
 
Curragh’s
experience and
 
knowledge
 
of mining
 
equipment
 
and
 
industry standards
 
with respect
 
to the
 
useful life
 
of such
equipment.
 
A summary of the estimated capital for the Property
 
is provided in section 17.
1.9
 
Operating Costs
Mine
 
operating
 
costs
 
include
 
labour
 
and
 
supply
 
costs
 
required
 
for
 
drilling,
 
blasting,
 
overburden
 
removal,
 
coal
removal,
 
pit
 
services,
 
and
 
indirect
 
costs.
 
The
 
company
 
uses
 
both
 
employees
 
and
 
contractors
 
for
 
operations
management,
 
marketing,
 
and
 
support
 
and
 
corporate
 
services.
 
Operating
 
and
 
maintenance
 
supplies
 
and
expenses
 
include
 
fuel,
 
equipment
 
parts
 
and
 
repairs,
 
explosives,
 
power,
 
and
 
water
 
handling.
 
Equipment
employed includes draglines, shovels, excavators, trucks,
 
dozers and loaders.
Other
 
cost
 
factors
 
were
 
incorporated
 
for
 
coal
 
preparation
 
plant
 
processing,
 
refuse
 
handling,
 
coal
 
loading,
technology
 
systems
 
and
 
infrastructure,
 
insurances,
 
downstream
 
port,
 
rail
 
and
 
demurrage
 
costs
 
at
 
applicable
contract and historic average rates.
Mandated
 
and
 
contractual
 
sales
 
related
 
costs
 
such
 
as
 
rebates,
 
and
 
government
 
royalties
 
are
 
measured
 
per
legislated and or contracted rates.
A summary of projected operating costs is provided in
 
section 17.
1.10
 
Economic Evaluation
The financial model prepared for this TRS was developed
 
to test the economic viability of the coal reserve
 
area.
The results of
 
this financial model
 
are not intended
 
to represent a
 
bankable feasibility study, required for financing
of any
 
current or future
 
mining operations contemplated
 
for the
 
Coronado properties, but
 
are intended to
 
establish
the economic viability
 
of the estimated
 
coal Reserves.
 
Cash flows
 
are simulated
 
on an annual
 
basis based
 
on
projected production from
 
the coal Reserves
 
.
 
The discounted cash
 
flow analysis presented
 
herein is based
 
on
an effective date of January 1, 2022.
 
Cash flows derived
 
are an outcome
 
of economic reserve costed
 
at property known
 
contracted and historical
 
trend
observed costs in
 
consideration of total
 
waste removed to
 
extract wash produce
 
and ship
 
clean coal
 
to customers.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Page 10 of 76
Customer coal pricing is derived from market observed forward estimates based on global economic supply
 
and
demand analysis which is applied to mine plan sales volumes
 
and product mix.
Economic outcomes include capital forecasts and government and
 
contracted royalty and rebate payments.
Table 1-4: Life Of Mine tonnage, Profit & Loss (P&L) before tax and Earnings Before Interest
Tax Depreciation & Amortization (EBITDA)
 
LOM
Clean
LOM
PandL
LOM
EBITDA
 
Tonnes
Pre-Tax PandL
Per Tonne
EBITDA
Per Tonne
Curragh
252Mt
5.6 billion
22
7.8 billion
31
Clean tonnes valued in
 
Life Of Mine (LOM) estimates
 
are greater than marketable
 
reserves tonnes due to
 
mine
sequencing
 
required
 
for
 
open
 
pit
 
design
 
to
 
achieve
 
marketable
 
reserves.
 
Under
 
SEC
 
requirements
 
inferred
resources cannot be converted to reserves, only measure
 
and indicated resources.
In order to allow
 
the mine plan
 
to proceed however
 
inferred resources must
 
be mined, these
 
are then excluded
for reporting purposes from the marketable tonnes.
The
 
majority
 
of
 
inferred
 
tonnes
 
are
 
mined
 
late
 
in
 
the
 
schedule
 
and
 
due
 
to
 
the
 
discounting
 
affect
 
these
 
have
minimal impact on net present value (NPV).
As shown in
the Curragh Mine shows positive EBITDA
 
over the LOM.
 
Overall, Curragh’s operations
show positive LOM P&L and EBITDA of well over $5
 
billion.
Curragh’s cash flow summary,
 
excluding debt service, is shown in section 18.
Consolidated
 
cash
 
flow
 
from
 
operations
 
is
 
positive
 
over
 
the
 
mine
 
life
 
with
 
the
 
post-production
 
years
 
showing
negative cash flows due to end-of-mine reclamation spending.
 
Cash flow
 
after tax,
 
but before
 
debt service,
 
generated over
 
the life
 
of the
 
project was
 
discounted to
 
NPV at
 
a
10.0% discount rate, which represents Coronado’s risk adjusted Weighted Average Costs of Capital (WACC)
 
for
likely market
 
participants
 
if the
 
subject reserves
 
were offered
 
for sale.
 
The NPV
 
of the
 
project cash
 
flows is
 
a
point in
 
time estimate
 
of potential
 
economic
 
outcomes
 
with scope
 
for further
 
projects
 
not yet
 
considered.
 
The
NPV amounts
 
to approximately
 
$ 1.5
 
billion as
 
a base
 
line only
 
with outcomes
 
highly dependent
 
upon market
based pricing and
 
exchange rates. The financial
 
model prepared for
 
the TRS was developed
 
to test the
 
economic
viability of each coal resource area.
 
The NPV estimate was made for purposes
 
of confirming the economics
 
for
classification of coal reserves and not for purposes
 
of valuing Coronado or its Curragh assets.
 
Mine plans were
not optimized,
 
and actual
 
results of
 
the operations
 
may be
 
different,
 
but in
 
all cases,
 
the mine
 
production plan
assumes the properties are under competent management.
1.10.1
 
Sensitivity Analysis
NPV outcomes are highly sensitive to changes in
 
AUD:USD exchange rates and forward PLV
 
index coal prices.
Curragh base line NPV discounts cash flows
 
at 10% using a life of
 
mine exchange rate of 0.67 based on
 
January
2022 exchange
 
rate forward
 
curves
 
and forward
 
index
 
prices prepared
 
in December
 
2021 and
 
January
 
2022.
The resultant base line NPV is $1.5 billion.
Sensitivity of the NPV results to changes in the key drivers
 
is presented in section 18
1.11
 
Conclusion and Recommendations
Sufficient data have been obtained through various exploration and
 
sampling programs and mining operations to
support the geological interpretations
 
of seam structure and thickness
 
for coal horizons situated on
 
the Curragh
Property.
 
The
 
data
 
are
 
of
 
sufficient
 
quantity
 
and
 
reliability
 
to
 
reasonably
 
support
 
the
 
coal
 
Resource
 
and
 
coal
reserve estimates in this TRS.
 
 
Page 11 of 76
The geological data
 
and preliminary
 
feasibility study,
 
which consider
 
mining plans,
 
revenue, and
 
operating and
capital cost estimates are sufficient to support the classification
 
of coal Reserves provided herein.
 
 
 
 
 
Page 12 of 76
2
Introduction
2.1
 
Registrant and Terms of Reference
This report was prepared for the sole use of Coronado
 
Global Resources Inc. (“Coronado”) and its affiliated
 
and
subsidiary companies
 
and advisors.
 
The report
 
provides a
 
statement of
 
coal Resources
 
and coal
 
Reserves for
the
 
Curragh
 
mine,
 
as
 
defined
 
under
 
SEC
 
regulation
 
S-K
 
1300
 
and
 
the
 
Australasian
 
Code
 
for
 
Reporting
 
of
Exploration Results,
 
Mineral Resources and
 
Ore Reserves
 
(JORC Code 2012).
 
This report was
 
also prepared
in
 
accordance
 
with
 
the
 
Australasian
 
Code
 
for
 
Public
 
Reporting
 
of
 
Technical
 
Assessments
 
and
 
Valuations
 
of
Mineral Assets (VALMIN
 
Code 2015).
The report provides a statement of Coal Resources
 
and Coal Reserves for the Curragh mine. Exploration results
and Resource calculations were used as the basis for the
 
mine planning.
Coal
 
Resources
 
and
 
Coal
 
Reserves
 
are
 
herein
 
reported
 
in
 
metric
 
units
 
of
 
measurement
 
and
 
are
 
rounded
 
to
millions of metric tonnes (Mt). All currency is in USD.
2.2
 
Information Sources
This TRS is
 
based on information
 
provided by various
 
Curragh employees and
 
external consultants and
 
reviewed
by Barry
 
Lay (Qualified
 
Person Resource)
 
and Paul
 
Wood (Qualified
 
Person Reserve).
 
For the
 
evaluation, the
following tasks were completed:
●
 
Process the information supporting the estimation of Coal Resources and Coal Reserves into geological
models;
 
●
 
Develop life-of-mine (LOM) plans and financial models;
●
 
Held discussions with Coronado company management; and
 
●
 
Prepare and issue a Technical
 
Report Summary (“TRS”) providing
 
a statement of Coal Reserves
 
which
would include:
●
 
A description of the mine and facilities.
 
●
 
A description of the evaluation process.
●
 
An
 
estimation
 
of
 
Coal
 
Resources
 
and
 
Coal
 
Reserves
 
with
 
compliance
 
elements
 
as
 
stated
 
under
 
the
JORC Code and the Regulation S-K 1300.
2.3
 
Personal Inspections
Paul Wood is very
 
familiar with the Curragh
 
mine site,
 
having served with the company
 
for five years as
 
a Long
Term Mine Planner and having conducted
 
multiple site visits
 
from 2016 to
 
2019 in his
 
role in charge
 
of exploration
drilling. Barry Lay is an external
 
consultant who runs his own company Resology Pty Ltd
 
and is a former Curragh
employee with years of site experience.
2.4
 
Prior Reports
Curragh Resources
 
and Reserves
 
have historically
 
been reported
 
under JORC
 
code requirements
 
to the
 
ASX
and this Technical
 
Report Summary (TRS) is the first report prepared
 
under the requirements of SEC regulation
S-K 1300.
3
Property Description
3.1
 
Location
The Curragh Project
 
is located approximately
 
200 kilometres
 
by road west
 
of Rockhampton
 
and approximately
14 km
 
north
 
of
 
the
 
town
 
of
 
Blackwater
 
(refer
 
to
 
within
 
the
 
Central
 
Highlands
 
Regional
 
Council,
 
ex961p13i0.jpg
 
Page 13 of 76
Queensland Australia.
 
The coordinates of the
 
CPP1 are 688,561 East,
 
7,400,933 North in the AMG66
 
coordinate
system.
Figure 3-1: Location Map
 
 
Page 14 of 76
3.2
 
Titles, Claims or Leases
The
Mineral
 
Resources
 
Act
 
1989
 
(Qld)
 
(MRA)
 
and
 
the
Mineral
 
and
 
Energy
 
Resources
 
(Common
Provisions)
 
Act
 
2014
 
(Qld)
(MERCPA)
,
 
together,
 
provide
 
for
 
the
 
assessment,
 
development
 
and
utilization
 
of
 
mineral
 
resources
 
in
 
Queensland
 
to
 
the
 
maximum
 
extent
 
practicable,
 
consistent
 
with
sound
 
economic
 
and
 
land
 
use
 
management.
 
The
 
MRA
 
vests
 
ownership
 
of
 
minerals,
 
with
 
limited
exceptions, in the Crown (i.e., the state government). A royalty is payable to the Crown
 
for the right to
extract
 
minerals.
 
The
 
MRA
 
also
 
creates
 
different
 
tenures
 
for
 
different
 
mining
 
activities,
 
such
 
as
prospecting, exploring and mining.
 
A mining lease
 
(or ML) is
 
the most important
 
tenure, as it
 
permits
the
 
extraction
 
of
 
minerals
 
in
 
conjunction
 
with
 
other
 
required
 
authorities. The
 
MRA
 
imposes
 
general
conditions on an ML.
We control the coal
 
mining rights at Curragh under 14
 
coal and infrastructure mining leases, or
 
ML’s,
and three mineral development
 
licences, or MDL’s, granted pursuant
 
to the MRA. We
 
refer to the ML’s
and MDL’s at Curragh, collectively,
 
as the Tenements. Renewal of certain Tenements
 
will be required
during the mine life of Curragh and the
 
Queensland government can vary the terms and
 
conditions on
renewal. There are a number of petroleum
 
tenements which overlap with the Tenements. The priority,
consent
 
and
 
coordination
 
requirements
 
under
 
the
 
MRA,
 
MERCPA
 
and
 
the
 
Petroleum
 
and
 
Gas
(Production
 
and
 
Safety)
 
Act
 
2004
 
(Qld)
 
(as
 
relevant)
 
may
 
apply
 
with
 
respect
 
to
 
those
 
overlaps.
Extensive
 
statutory
 
protocols
 
govern
 
the
 
relationships
 
between
 
co
‑
existing
 
mining
 
and
 
exploration
rights
 
and these
 
protocols are
 
largely focused
 
on encouraging
 
the
 
overlapping tenement
 
holders to
negotiate and
 
formulate arrangements
 
that
 
enable the
 
co
‑
existence of
 
their
 
respective interests.
 
To
date, we have negotiated arrangements in place
 
with all of our overlapping tenement
 
holders and full
access to all of our Tenements.
 
The respective ML’s
 
and MDL’s are shown
 
in
,
 
and
 
 
ex961p15i0.jpg
 
Page 15 of 76
Figure 3-2: Mining Leases and Mineral Development Licenses
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Page 16 of 76
Table 3-1: Mining Leases
Mineral Lease
Permit Name
Expires
Hectares
Comments
ML 1878
Curragh
5/31/2024
4,455
 
ML 1990
Curragh A
5/31/2023
172
 
ML 80010
Curragh Extended No.1
5/31/2023
24
Infrastructure
ML 80011
Curragh Extended No.2
5/31/2023
6
Infrastructure
ML 80012
Curragh Extended No.3
5/31/2023
43
Infrastructure
ML 80086
Curragh East
10/31/2025
3,033
 
ML 80110
Curragh North
7/31/2044
4,860
 
ML 80112
Curragh B
5/31/2023
110
Infrastructure
ML 80123
Curragh North A
7/31/2044
5
ML 80171
Curragh West
7/31/2040
954
 
ML 700006
Curragh South
6/30/2041
1,432
 
ML 700007
Curragh Central
6/30/2041
1,123
 
ML 700008
Curragh Central Extended
11/30/2040
2,643
 
ML 700009
Curragh Extended
11/30/2040
797
 
 
 
19,658
 
Table 3-2: Mineral Development Licenses
License
Permit Name
Expires
Hectares
Comments
MDL 162
Mackenzie
2/28/2023
3,213
 
MDL 328
Curragh West No. 1
8/31/2026
381
 
MDL 329
Curragh West No. 2
8/31/2026
2,334
 
 
 
5,928
 
 
 
 
Page 17 of 76
There are no outstanding disputes or litigation. Only one tenement (ML 80123) required a native title process for
its
 
grant.
 
Curragh
 
undertook
 
the
 
Right
 
to
 
Negotiate
 
process
 
with
 
the
 
then
 
Native
 
Title
 
Parties,
 
the
 
Gaangalu
Nation People, and
 
concluded an ancillary
 
agreement and a
 
section 31 Deed
 
to allow the
 
ML to be
 
validly granted
in compliance with the
 
Commonwealth Native Title
 
Act 1993.There are
 
no material issues relating
 
to native title
for the Curragh operations
.
Curragh negotiated
 
a Cultural
 
Heritage Management
 
Plan (“CHMP”)
 
for the
 
project in
 
2012. There
 
have been
subsequent changes to
 
the registration and
 
composition of the Native
 
Title claim for the relevant
 
Aboriginal Party.
A new CHMP has been prepared for the extended Curragh
 
operations, signed on December 19, 2017.
Cultural heritage is unlikely to pose any material issues
 
to the Curragh operations.
3.3
 
Mineral Rights
Property control and mining
 
rights at Curragh are
 
entirely expressed in the
 
mining leases and licenses
 
mentioned
in
 
the
 
previous
 
section
 
of
 
this
 
document.
 
Overlapping
 
petroleum
 
tenure
 
exists
 
over
 
the
 
southern
 
and
 
eastern
extents
 
of
 
the
 
Curragh
 
tenements.
 
Under
 
the
 
Mineral
 
and
 
Energy
 
Resource
 
(Common
 
Provisions)
 
Act
 
2014
legislation
 
(‘MERCPA
 
2014”)
 
this
 
requires
 
annual
 
information
 
exchanges
 
including
 
the
 
provision
 
and
maintenance of Joint Information Management Plans
 
with the overlapping petroleum tenement holder.
 
CCPL is
compliant with the legislation and there are no current restrictions
 
to coal mining.
3.4
 
Encumbrances
There are mortgages on the tenements.
3.5
 
Other Risks
Risk exists in areas
 
of high environmental
 
significance; these are
 
managed by internal
 
processes as part of
 
the
normal
 
day
 
to
 
day
 
operations
 
of
 
the
 
mine.
 
Areas
 
that
 
have
 
high
 
environmental
 
value
 
that
 
lie
 
outside
 
of
 
the
approved disturbance footprints
 
are downgraded in
 
the Reserves to
 
the next lower
 
reserve category to
 
account
for uncertainty.
There are no
 
indications that matters associated
 
with surface rights, mineral
 
rights, or other encumbrances
 
would
deny access to the resources and reserves captured in the
 
current estimates.
 
 
 
 
Page 18 of 76
4
Accessibility,
 
Climate,
 
Local
 
Resources,
 
Infrastructure
 
and
Physiography
 
4.1
 
Topography,
 
Elevation and Vegetation
Curragh coal mine
 
is characterized by
 
a general gently
 
rolling topography,
 
which is the predominant
 
feature for
the Bowen Basin. The
 
principal drainage conduits
 
are the Mackenzie
 
River and the
 
Blackwater Creek and
 
their
tributaries, which represent the upper
 
phase of the hydrologic regime.
 
The mean altitude is between
 
140 and 150
metres above sea level.
Vegetation
 
at Curragh
 
consists primarily
 
of grass
 
land, with
 
pastures and
 
low intensity
 
cattle grazing
 
being the
primary forms of non-mining land use; the
 
secondary land use is crop farming over dry lands.
 
Most of the original
vegetation
 
was
 
cleared
 
for
 
agricultural
 
exploitation
 
with
 
a
 
relatively
 
small
 
portion
 
remaining
 
along
 
the
 
two
aforementioned waterways.
4.2
 
Access and Transport
Established sealed roads connect the mine to the town
 
s
 
of Emerald to the west and the port at Gladstone to
 
the
east.
 
Curragh site owns
 
and runs a
 
rail loop, adjacent
 
to product stockpiles
 
with a conveyor
 
system that feeds
train loadout bin.. Domestic
 
coal sales are loaded
 
onto train wagons for
 
transportation to the
 
Stanwell coal fired
power station for power generation. While export coal is transported by rail on the Blackwater line approximately
290km to
 
the RG
 
Tanna
 
or Wiggins
 
Island Coal
 
Export Ter
 
minal (WICET)
 
port facilities
 
at Gladstone.
 
No coal
transportation takes place on waterways.
4.3
 
Proximity to Population Centers
 
The
 
closest
 
population
 
centre
 
with
 
respect
 
to
 
Curragh
 
is
 
the
 
town
 
of
 
Blackwater
 
approximately
 
14
 
km
 
to
 
the
south..
 
The major regional town of Emerald, located 75 km to the west, offers daily flights to the State Capital of
Brisbane and is used extensively by Coronado personnel
 
travelling to and from site.
 
4.4
 
Climate and Length of Operating Season
The prevailing climate at
 
Curragh is sub-tropical characterized by
 
warm to hot and
 
wet summers and cool
 
to mild,
dry
 
winters.
 
The
 
highest
 
temperatures
 
are
 
observed
 
in
 
January,
 
reaching
 
an
 
average
 
of
 
34°
 
C;
 
the
 
coldest
temperatures occur in
 
July at
 
an average of
 
7°C. Annual rainfall
 
averages 635 mm,
 
with January being
 
the wettest
month with typical rainfalls of +90 mm.
 
July is the driest month with typical precipitation averaging
 
19 mm.
Except
 
for
 
a
 
few
 
occasions
 
of
 
heavy
 
summer
 
rain,
 
which
 
can
 
also
 
disrupt
 
the
 
activities
 
related
 
to
 
coal
transportation by the
 
railway to
 
the port at
 
Gladstone, there are
 
seldom major interruptions
 
at Curragh’s
 
mining
operations due to inclement weather.
 
Coal mining is therefore performed on a continuous year-round
 
basis.
 
 
 
 
 
Page 19 of 76
5
History
 
5.1
 
Previous Operation
The coal
 
mine at
 
Curragh was developed
 
in 1983
 
as a
 
joint venture between
 
the following
 
partners with respective
participation in ownership:
Arco Australia Ltd
 
30%
 
Australian Consolidated Industries Ltd
30%
 
R. W. Miller and Co.
30%
 
Mitsui and Co. (Australia)
10%
 
Arco Australia Ltd. bought
 
out the other joint
 
venturers and in 2000
 
sold the property to
 
Wesfarmers Ltd.
 
In 2014,
Wesfarmers
 
acquired
 
MDL
 
162
 
from
 
Peabody
 
Budjero
 
Pty
 
Ltd.
 
Coronado
 
acquired
 
all
 
the
 
Tenements
 
from
Wesfarmers Ltd. in
 
March 2018.
 
Since the
 
project’s inception, additional
 
mining leases and
 
development licenses
were incorporated into Curragh at different times.
 
5.2
 
Previous Exploration
Curragh has been
 
the subject
 
of numerous
 
phases of
 
exploratory drilling
 
programs extending
 
back to the
 
early
1960s. Currently
 
there are
 
some 15,000
 
boreholes available
 
for geological
 
evaluation of
 
the asset
 
with around
9,000 directly within the
 
current mineral concession borders.
 
The vast majority of
 
these boreholes are of
 
the non-
coring
 
type
 
(open
 
hole).
 
Further
 
details
 
on
 
past
 
exploration
 
efforts
 
are
 
presented
 
in
 
Section
 
7.Various
 
drilling
programmes were
 
conducted by
 
the Queensland
 
Department of
 
Minerals and Energy
 
(previously known
 
as Mines
Department) during
 
the period
 
1966-76 over
 
a large
 
area between
 
the Capricorn
 
Highway and
 
the MacKenzie
River. The
 
area was within the
 
Department of Mines Reserved
 
Area 56D (RA56D). From
 
1976 to 1978 detailed
drilling and
 
coal analysis
 
was
 
carried out
 
by officers
 
of the
 
Geological
 
Survey of
 
Queensland on
 
behalf of
 
the
State Electricity Commission of Queensland (SECQ). During this time the SECQ (SECQ’s interest is now vested
in
 
Stanwell
 
Corporation
 
Limited)
 
was
 
granted
 
Authority
 
to
 
Prospect
 
(ATP)
 
217C.
 
Extensive
 
exploration
 
of
 
the
Curragh area within ATP
 
217C occurred between 1976 and 1978.
In 1982
 
further exploration was
 
carried out
 
by Geological
 
Survey of
 
Queensland on behalf
 
of SECQ
 
in the
 
Curragh
East area. The Curragh lease (ML1878) was granted on 27 May 1982 and that part of the area was relinquished
from ATP
 
217. A significant
 
exploration programme
 
was undertaken
 
in 1993 to
 
provide coal
 
quality information
and additional structural data for Curragh East. Four hundred holes were drilled,
 
comprising 320 open holes with
geophysical logs and 80 partially cored holes.
 
 
In 1996 a large exploration
 
programme was undertaken
 
at the northern end
 
of MDL162 and this
 
work provided
the basis for the Pisces Project feasibility study
 
(Curragh North). In 2001 twenty partially cored holes were drilled
in this
 
northern
 
part of
 
MDL162 to
 
provide
 
samples
 
for
 
bench scale
 
coking
 
coal
 
testing.
 
Another
 
large
 
drilling
programme was commenced in 2003 and the culmination of all this work saw ML80110 (Curragh North) granted
on 22nd July 2004.
 
Systematic drilling
 
programs (ongoing),
 
conducted since
 
the mine
 
was commissioned, have
 
resulted in
 
thousands
of holes being drilled in the Curragh Lease area.
 
In last
 
three years,
 
several strategic
 
holes have
 
been acquired
 
on an
 
ongoing basis
 
to investigate
 
potential for
future
 
underground
 
mining.
 
Geotech,
 
gas,
 
coal
 
quality
 
and
 
spontaneous
 
combustion
 
samples
 
have
 
been
collected as part of this program.
6
Geological setting, Mineralization and Deposit
 
6.1
 
Regional, Local and Property Geology
Curragh
 
is
 
situated
 
within
 
the
 
Permo-Triassic
 
aged
 
Bowen
 
Basin
 
in
 
Eastern
 
Australia,
 
which
 
covers
approximately 16 million hectares. Its
 
physiographic make-up consists of
 
lowlands, flood plains as
 
well as rugged
 
 
Page 20 of 76
plateaus and
 
ridges. The
 
main lithological
 
units derive
 
from continental
 
and marine
 
sedimentation
 
with limited
volcanic and intrusive rocks. The principal Resources are primarily large
 
coal fields and secondarily natural gas.
The geological setting
 
of the property
 
itself consists
 
of sediments
 
of the Rangal
 
Coal Measures
 
and Burngrove
Formation, both
 
of Permian
 
age which
 
outcrop on
 
the property.
 
These units
 
underlie alluvial
 
Quaternary cover
and minor areas of
 
Tertiary sediments. Alluvial sediments typically have an average thickness
 
of 10 to
 
15 metres,
with locations of up to 30 metres of sand, clay and gravel
 
in northern areas.
The Yarrabee
 
Tuff
 
marker coincides
 
with the
 
present lower
 
limit of
 
Resource estimate.
 
shows the
typical stratigraphic column that
 
applies to the property.
 
Five main coal seams
 
groups, primarily of
 
metallurgical
quality with some thermal quality coals, are mined at Curragh,
 
as listed below:
●
 
Cancer seam
●
 
Aries seam
●
 
Castor seam
●
 
Pollux seam
●
 
Mackenzie and Pisces
The Burngrove Formation typically has thick interbedded coal and tuff beds. This coal is typically high ash and
 
is
not included in either the Resources or Reserves.
The structural
 
environment at
 
Curragh can
 
be fairly
 
complex with
 
the observed
 
seam deformation
 
the result
 
of
thrust faulting from the northeast with fault throws up to 30 m. Structural thickening can occur where thrust faults
cause affected seams to be
 
repeated, but in most cases the duplicated
 
seams are not included in the Resource
estimation, although such repeats of coal are often mined and included in
 
the Resource estimation if sequencing
permits such as the Pollux seam. Thrust faulting
 
can also result in barren areas, where seams have
 
been faulted
out. North-south and
 
east-west trending
 
normal faults
 
also occur but
 
are less common
 
than thrust faulting
.
The
structural geology within the Resource
 
adds some complexity to the project,
 
as such the mine employs a
 
strong
geotechnical program to manage geotechnical risks.
The major
 
structure that
 
limits mining
 
at Curragh
 
North is
 
the Jellinbah
 
fault, this
 
trends in
 
a north
 
west,
 
south
east direction with throws of over 100m, various splays of lesser
 
throws (10 to 20m) trend to the north west.
 
ex961p21i0.jpg
 
 
 
 
 
Page 21 of 76
Figure 6-1: Blackwater Group Stratigraphic Sequence
6.2
 
Mineralization
The
 
generalized
 
stratigraphic
 
columnar
 
section
 
in
 
demonstrates
 
the
 
vertical
 
relationship
 
of
 
the
principal coal seams and rock formations
 
at Curragh. The property,
 
as in the Bowen Basin as a whole, does
 
not
contain
 
any
 
signs
 
of
 
metamorphic
 
activity;
 
the
 
prevailing
 
lithology
 
is
 
sedimentary
 
rocks
 
with
 
a
 
few
 
igneous
intrusions. The depth of host rock weathering at Curragh is
 
on average in the order of 10 to 15 metres.
6.3
 
Coal Quality
Coal
 
seams
 
at
 
Curragh
 
are
 
mainly
 
of
 
the
 
low
 
volatile
 
metallurgical
 
grade
 
with
 
a
 
secondary
 
middling
 
thermal
product. Sulphur
 
and phosphorus
 
content is
 
generally low.
 
Insitu ash
 
is in
 
the range
 
of 20%
 
thus necessitating
beneficiation
 
to
 
meet
 
market
 
requirements,
 
which
 
in
 
this
 
case
 
is
 
accomplished
 
through
 
a
 
coal
 
handling
 
and
preparation plant. Metallurgical coal products range
 
from 7-10% product ash.
 
ex961p22i0.jpg
 
Page 22 of 76
6.4
 
Deposits
 
shows
 
a
 
3D
 
view
 
of
 
the
 
geometry
 
of
 
the
 
coal
 
horizons
 
at
 
Curragh.
 
In
 
portions
 
of
 
the
 
property,
 
a
number of these seams merge to form a single package, without any interburden strata. In the central and some
of the northern part of the property the Aries and Castor seams coalesce into one coal stratum that is referred to
locally as
 
the “Mammoth”
 
seam. The
 
Mammoth Seam
 
is analogous
 
to the
 
Leichardt
 
seam commonly
 
found in
mining
 
operations
 
further
 
north.
 
At Curragh
 
North
 
the
 
Pollux, Orion
 
and
 
Pisces
 
seams
 
coalesce
 
into one
 
unit
which is correctly referred to as
 
the Mackenzie seam, but in some contexts
 
has been referred to as the “Pisces”
seam even though the true Pisces
 
seam is only one of
 
the constituent seams of the Mackenzie assemblage.
 
The
Mackenzie seam is analogous to the Vermont seam which is commonly found in mining operations further north.
Figure 6-2: Trends in Seam Splitting and Coalescing from North to South
 
highlights
 
a
 
North-South
 
section
 
from
 
the
 
current
 
geological
 
model
 
through
 
Curragh
 
properties.
Seams of
 
economic
 
interest occur
 
at depths
 
ranging from
 
15m from
 
surface down
 
to as
 
deep as
 
400m in
 
the
deepest part of the property.
 
Interburden
 
host
 
rock
 
typically
 
consists
 
of
 
regular
 
intercalations
 
of
 
siltstones
 
and
 
mudstones,
 
with
 
layers
 
of
variable thicknesses. The rock and coal beds
 
dip gently to East direction at
 
an angle of approximately 3 degrees,
with some sections displaying dip angles as high as 10
 
degrees in association with structural deformation.
In
 
general,
 
only
 
minor
 
instances
 
of
 
intrusive
 
material
 
have
 
been
 
intercepted
 
in
 
drill
 
holes
 
or
 
mined
 
during
production at the Curragh Mine.
Igneous activity
 
is more
 
prevalent at
 
Curragh North
 
although these
 
are not
 
a major
 
impact on
 
Operations. The
intrusive includes rare dykes occurring at the northern end of Curragh North deposit.
 
There was a larger igneous
intrusion approximately 500 metres long
 
and 100 metres wide that
 
impacted the Resources of
 
the Aries, Castor
and Mackenzie seams.
 
Mining has proceeded past the area of impact of this
 
intrusion.
Curragh has been
 
subjected to
 
moderate localized
 
faulting more
 
intense in southern
 
areas that has
 
resulted in
vertical slips (displacements) as high as 20 metres, along with variations in seam thickness.
 
Seam duplication is
also common
 
as a
 
result of
 
the thrust
 
faulting but
 
in most
 
cases the
 
duplicated
 
seams are
 
not
 
included in
 
the
Resource estimation, although such repeats of coal
 
are often mined.
 
 
ex961p23i0.jpg ex961p23i1.jpg
 
Page 23 of 76
The
 
principal
 
geostructural
 
feature
 
is
 
the
 
Jellinbah
 
regional
 
thrust
 
fault
 
located
 
east
 
of
 
the
 
mine
 
outside
 
the
Resource
 
area.
 
The
 
structural
 
geology
 
within
 
the
 
Resource
 
adds
 
some
 
complexity
 
to
 
the
 
project.
 
The
 
mine
employs a strong geotechnical program to manage geotechnical
 
risks.
Figure 6-3: North South Section through Curragh
 
Tenements showing major seams
 
 
 
 
Page 24 of 76
7
Exploration
 
7.1
 
Nature and Extent of Exploration
The Curragh geological drilling database contains
 
over 18,000 holes drilled over
 
a long history of exploration and
development in the Curragh
 
area. Various
 
drilling programmes were conducted
 
by the Queensland Department
of Minerals
 
and Energy
 
(previously known
 
as Mines
 
Department) during
 
the period
 
1966-76 over
 
a large
 
area
between
 
the
 
Capricorn
 
Highway
 
and
 
the
 
MacKenzie
 
River.
 
The
 
area
 
was
 
within
 
the
 
Department
 
of
 
Mines
Reserved Area 56D
 
(RA56D). From
 
1976 to 1978
 
detailed drilling and
 
coal analysis
 
was carried out
 
by officers
of the Geological
 
Survey of
 
Queensland on
 
behalf of
 
the State
 
Electricity Commission
 
of Queensland
 
(SECQ).
During this time
 
the SECQ (SECQ’s interest
 
is now vested
 
in Stanwell Corporation
 
Limited) was granted
 
Authority
to Prospect
 
(ATP)
 
217C.
 
Extensive exploration
 
of the
 
Curragh area
 
within
 
ATP
 
217C occurred
 
between 1976
and 1978.
In 1982
 
further exploration was
 
carried out
 
by Geological
 
Survey of
 
Queensland on behalf
 
of SECQ in
 
the Curragh
East area. The Curragh lease (ML1878) was granted on 27 May 1982 and that part of the area was relinquished
from ATP
 
217. A significant
 
exploration programme
 
was undertaken
 
in 1993 to
 
provide coal
 
quality information
and additional structural data for Curragh East. Four hundred holes were drilled,
 
comprising 320 open holes with
geophysical logs and 80 partially cored holes.
 
In 1996 a
 
large exploration programme
 
was undertaken
 
at the northern
 
end of MDL162
 
and this work
 
provided
the basis for the Pisces Project feasibility study
 
(Curragh North). In 2001 twenty partially cored holes were drilled
in this
 
northern
 
part of
 
MDL162 to
 
provide
 
samples
 
for
 
bench scale
 
coking
 
coal
 
testing.
 
Another
 
large
 
drilling
programme was commenced in 2003 and the culmination of all this work saw ML80110 (Curragh North)
 
granted
on 22nd July 2004.
 
Systematic drilling
 
programs (ongoing),
 
conducted since
 
the mine
 
was commissioned, have
 
resulted in
 
thousands
of holes being drilled in the Curragh Lease area.
 
In the last three
 
years, several strategic
 
holes have been drilled
 
on an ongoing basis
 
to investigate potential
 
for
future
 
underground
 
mining.
 
Geotech,
 
gas,
 
coal
 
quality
 
and
 
spontaneous
 
combustion
 
samples
 
have
 
been
collected as part of this program.
Some
 
geophysical
 
techniques
 
including
 
seismic
 
and
 
aero-magnetics
 
have
 
supplemented
 
the
 
geological
understanding. This work is discussed in the next sections.
7.1.1
 
Non-drilling exploration
Geophysical techniques have
 
been used to
 
supplement the understanding
 
of the Curragh
 
Resource.
 
This work
has been to guide overall understanding of intrusions, seam continuity and sub-surface faults but it has not been
the main source of interpretive data for the Resource estimation,
 
which is drilling.
The mains surveys that have been conducted are:
●
 
In September
 
2003 a
 
low level
 
airborne geophysical
 
survey was
 
flown over
 
large parts
 
of the
 
Curragh
tenements to acquire magnetic and radiometric data (31.5km’s
 
of line at 100m spacing).
●
 
In
 
2019,
 
44km
 
of
 
regional
 
Scale
 
2D
 
seismic
 
acquired
 
to
 
provide
 
characterisation
 
of
 
seam
 
continuity,
seam splits and sub-surface structure.
●
 
In 2020, 18km of closely spaced
 
2D lines in ML 80110 were acquired to characterise structure and
 
seam
continuity adjacent to Pit S and Pit U,
Aero-magnetic data has
 
indicated that Resources
 
are largely intrusion
 
free except for
 
one large “plug”
 
body which
was picked up in aero-magnetics and has since been
 
mined out.
The 2D survey has been very successful to understand larger scale structures that are difficult
 
and expensive to
define with drilling.
 
The seismic
 
data indicated that
 
Resources are
 
largely continuous
 
with some disruption
 
due
to faulting. The
 
Phase I seismic
 
survey was successful
 
in locating the
 
Jellinbah fault, a
 
major regional fault
 
and
to define seam splitting in areas of sparse drilling.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ex961p25i0.jpg
 
Page 25 of 76
Figure 7-1: Geophysical Surveys
7.1.2
 
Drilling Exploration
The Curragh deposit has a long history of exploration
 
with over 18,000 holes drilled in its properties (
). Of these approximately 15,000 holes are deemed
 
suitable for use in the geological model. The remainder
have been excluded due to not meeting strict data quality requirements.
 
shows the Curragh
Property drilling statistics.
 
The excluded holes comprise three broad groups of holes:
●
 
Holes that were not geophysically logged
●
 
Drill and blast holes that were only partially logged
●
 
Top
 
of coal grade control drilling
Approximately 7,500 of the included holes lie in areas
 
of declared coal Resources. Most of these boreholes are
non-coring (open holes), with a portion as cored holes for
 
coal quality and washability,
 
geotechnical, gas or
fugitive emissions purposes. Predominantly all holes are
 
logged by downhole wireline geophysical techniques.
 
Table 7-1: Drill hole Statistics
Hole Type
Metres
Number of Holes
Chip
 
1,212,896
 
 
14,084
 
Core
 
125,514
 
 
1,292
 
Total
 
1,338,410
 
15,376
Excluded Holes
 
140,430
3,389
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Page 26 of 76
All drilling and sampling are conducted in accordance with the Curragh Geology Planning system which sets out
standards
 
for
 
logging,
 
data
 
capture,
 
sampling
 
and
 
validation
 
of
 
drilling
 
data.
 
A
 
subset
 
of
 
these
 
procedures
 
is
shown in
Table 7-2: Selected Exploration and Data management procedures
Procedure Name
CPS PLN 2.0 Geology System Plan.pdf
CPS PRO 2.3 Exploration Planning.pdf
CPS PRO 2.4 Exploration Execution.pdf
CPS WI 2.51 Drill Site Management.pdf
CPS PRO 2.5 Exploration Data Collection.pdf
CPS WI 2.21 Establishing Exploration Requirements.pdf
CPS WI 2.22 Guide to Exploration Planning.pdf
CPS WI 2.23 Core Logging and Sampling.pdf
CPS WI 2.24 Minimum Borehole Logging Requirements.pdf
CPS WI 2.26 Sampling for Coal Quality Analysis.pdf
All
 
logging
 
and
 
data
 
management
 
is
 
conducted
 
by
 
qualified
 
geologists.
 
In
 
recent
 
years
 
all
 
geological
 
data
 
is
captured in
 
specialist
 
logging software
 
and imported
 
into the
 
Company’s
 
geological database
 
(Geobank)
 
after
rigorous data validation. The database
 
is maintained by company IT
 
professionals and administered by company
geological staff.
Drilling comprises short term operational
 
drilling designed to reduce geological uncertainty
 
in short-term planning
and long-term strategic drilling to allow for assessment
 
of future mining options.
The
 
primary
 
drilling
 
techniques
 
are
 
chip
 
drilling
 
(non-core)
 
and
 
coring.
 
Chip
 
holes
 
provide
 
ground
 
up
 
(“chip”)
samples that are returned to surface by air or water which
 
provides lithology information down the hole
 
normally
logged at 1m intervals. Down hole geophysics provides
 
detailed lithology and coal thickness data in these
 
holes
for subsequent modelling.
Downhole
 
wireline
 
techniques
 
include
 
calliper
 
(borehole
 
diameter),
 
gamma,
 
density,
 
sonic
 
and
 
borehole
verticality.
 
In some
 
cases
 
optical or
 
acoustic televiewers
 
are run
 
to provide
 
more detailed
 
bedding
 
and defect
orientation data.
Core
 
allows
 
for
 
a
 
more
 
detailed
 
understanding
 
of
 
rock
 
characteristics
 
including
 
lithology
 
fabric,
 
rock
 
defects,
hardness
 
and provides
 
physical
 
intact
 
samples
 
for subsequent
 
laboratory
 
testing.
 
Cored
 
holes
 
of either
 
63
 
or
100mm
 
diameter
 
are
 
logged,
 
photographed
 
and
 
sampled
 
by
 
a
 
qualified
 
geologist
 
into
 
company
 
geological
database. Cored holes maybe partially cored or fully cored dependent
 
on the purpose of the hole and samples.
Chips samples may
 
be collected and
 
tested for coal
 
oxidation. Core samples
 
are more common
 
and maybe taken
for several reasons:
●
 
Coal Quality and Washability samples
●
 
Dilution Samples
●
 
Geotechnical Samples
●
 
Gas and Fugitive Emissions Samples
●
 
Reactive Ground and Spontaneous Combustion Samples
Please refer to Table
 
7-4 for details on standard and procedures.
 
ex961p27i0.jpg
 
Page 27 of 76
Figure 7-2: Curragh Boreholes as of 31 August 2021 used
 
in Resource Estimate
Large core
 
holes (200mm)
 
are generally
 
drilled at
 
the start
 
of project
 
evaluation to
 
provide detailed
 
sizing and
coal quality
 
and
 
coke
 
characterisation
 
data
 
and
 
form
 
a small
 
part of
 
the Curragh
 
coal quality
 
database.
 
More
frequent
 
are
 
cored
 
holes
 
of
 
either
 
63mm
 
or
 
100mm
 
diameter.
 
These
 
holes
 
are
 
logged,
 
photographed
 
and
sampled by
 
a qualified
 
geologist. The
 
sample test
 
data provides
 
information on
 
coal quality,
 
geotechnical, gas,
reactive ground and
 
spontaneous combustion
 
characteristics.
 
shows the sample
 
locations by main
sample type.
 
ex961p28i0.jpg
 
Page 28 of 76
Figure 7-3: Sample
 
Locations by main Sample Type
7.1.3
 
Drilling, Sampling and Recovery Factors
A number
 
of drilling,
 
sampling and
 
recovery factors
 
can materially
 
affect the
 
accuracy and
 
reliability of
 
results.
These factors are routinely reviewed as part of validation
 
and estimation processes.
Drillhole spacing
 
varies
 
across
 
Curragh properties
 
from
 
as low
 
as 20m
 
to as
 
high
 
as 1-2km.
 
In years
 
prior
 
to
mining, infill drilling
 
occurs with drill
 
hole spacing decreased to
 
the order of
 
50-100m for chip holes.
 
Cored sample
drilling spacing prior to mining is generally less than 400m.
Core Recovery
 
- The diameter
 
of exploration
 
cores is
 
generally between
 
50mm and
 
100 mm, with
 
a few larger
diameter (200
 
mm) holes
 
used to
 
obtain samples
 
for simulated
 
degradation, washing,
 
combustion, and
 
coking
practices.
 
A
 
minimum
 
core
 
recovery
 
of 90%
 
is used
 
as a
 
criteria
 
for
 
acceptance
 
or rejection
 
of
 
a sample
 
for
subsequent
 
analysis.
 
If
 
a
 
sample
 
fails
 
those
 
criteria,
 
the
 
sample
 
is
 
re-drilled
 
or
 
rejected
 
from
 
subsequent
modelling.
Drillhole
 
Collar
 
Survey
 
–
 
All
 
borehole
 
locations
 
and
 
elevation
 
since
 
the
 
mid-1980’s
 
have
 
been
 
surveyed
 
by
 
a
registered mine surveyor
 
registered under the
 
Surveyors Act 2003.
 
Boreholes are surveyed
 
in a local mine
 
grid
which
 
is
 
within
 
a
 
close
 
approximation
 
to
 
Australian
 
Geodetic
 
Datum
 
(ADG84).
 
For
 
the
 
few
 
holes
 
still
 
used
 
in
 
 
Page 29 of 76
Resource models and estimation drilled prior to mid-1980’s that it is unclear what
 
survey procedures were used.
Where survey is in doubt, those holes are excluded from
 
Resource estimate.
Downhole Verticality - Recent holes in last 5-10 years have been
 
surveyed by downhole verticality tools that give
the holes
 
dip and
 
dip direction
 
at frequent
 
intervals
 
down the
 
hole. Holes
 
prior to
 
this were
 
not surveyed
 
with
verticality
 
tools
 
and
 
it
 
is
 
assumed
 
that
 
these
 
holes
 
are
 
vertical.
 
For
 
Resource
 
and
 
reserve
 
estimation,
 
this
assumption is not material.
7.1.4
 
Drilling Results and Interpretation
Coronado properties have been drilled at suitable
 
density and sufficient samples have been collected to allow
 
for
construction
 
of
 
a
 
detailed
 
geological
 
model.
 
In
 
areas
 
of
 
wider
 
drillhole
 
spacing,
 
the
 
uncertainty
 
of
 
this
 
model
increases. This uncertainty is
 
captured in Resource confidence
 
polygons in the Resource
 
estimation process and
reported accordingly as
 
Measured, Indicated or
 
Inferred Resources.
 
Only Measured or
 
Indicated resources
 
are
considered for conversion into mineral reserves.
 
shows all boreholes used in
 
the 2021 Resource model and
 
Resource estimate. The holes have been
used to
 
generate a
 
geological model,
 
through which
 
a geological
 
section is
 
presented in
 
Holes in
Burngrove Formation in south-western Mineral Development Leases are not shown as the coal in the Burngrove
Formation is not included in the Resources or Reserves.
Curragh has extensive drilling.
 
The results over the
 
years have shown that
 
the seams are generally
 
shallow dip
(less than 5°), however in fault and deformation
 
zones, steep dips occur locally.
 
Seam deformation has resulted
principally
 
from thrust
 
faulting
 
from
 
the
 
north-east
 
resulting
 
in seam
 
displacements
 
up to
 
20 metres
 
vertically.
North-south and east-west normal faults are less common
 
and some of these have a strike-slip component.
Fault deformation has
 
resulted in seam
 
thinning, thickening
 
and barren areas
 
which is more
 
prevalent in south.
The
 
Jellinbah
 
fault
 
occurs
 
on
 
the
 
eastern
 
side
 
of
 
the
 
Curragh
 
North
 
mining
 
lease.
 
The
 
fault
 
is
 
a
 
thrust
 
fault
upthrown on the eastern side by approximately 300 metres.
 
This is a physical boundary to coal mining.
Coal quality
 
sample data
 
indicates
 
that metallurgical
 
coal products
 
(low-vol coking
 
and PCI)
 
can be
 
produced
from all seams. A
 
secondary thermal product
 
is also produced
 
after beneficiation. A
 
much smaller proportion
 
of
seams
 
in
 
some
 
areas
 
are
 
only
 
suitable
 
for
 
thermal
 
coal.
 
The
 
metallurgical
 
coal
 
rank
 
(impacts
 
coke
 
strength)
slowly decreases with increasing depth to the east.
Coal
 
quality
 
models
 
are
 
well
 
supported
 
by
 
historical
 
production
 
with
 
low
 
vol
 
coking,
 
PCI
 
and
 
thermal
 
coal
produced at
 
Curragh for
 
several decades.
 
Coal quality
 
is not
 
expected to
 
materially change
 
in the
 
life of
 
mine
plan.
7.2
 
Hydrology
Curragh
 
is
 
an
 
active
 
mine
 
with
 
minimal
 
hydrologic
 
concerns.
 
Such
 
concerns
 
are
 
considered
 
to
 
be
 
well
understood, at least partly due to the extensive history
 
of operations on site.
 
Detailed
 
hydrological
 
modelling
 
has
 
been
 
carried
 
out
 
in
 
order
 
to
 
obtain
 
approvals
 
from
 
the
 
environmental
authorities. Generally, the coal seams
 
are aquifers with low permeability.
 
Active monitoring programs are also in
place. Where water is
 
present in the alluvial
 
deposits, it occurs in
 
paleochannels in the deeper
 
sections and when
present is managed
 
to not interfere
 
with operations.
 
The depth
 
to groundwater
 
in these sections
 
varies from
 
3
metres to 10 metres.
Wetlands and swamps in the area are not believed to be materially reliant on groundwater and are unlikely to be
affected by drawdown.
 
Current approved Environmental Management
 
Plans ensures any
 
environmental impacts
are minimised.
Rainfall
 
is
 
relatively
 
low,
 
with
 
an
 
average
 
of
 
635
 
mm
 
of
 
annual
 
precipitation,
 
and
 
consequently
 
interruptions
seldom
 
occur
 
in
 
the
 
mining
 
operations
 
due
 
to
 
severe
 
weather.
 
Most
 
rain
 
occurs
 
in
 
summer.
 
these
 
can
 
halt
production.
 
There
 
are
 
pit
 
stability
 
issues
 
which
 
relate
 
to
 
the
 
hydrogeologic
 
regime
 
that
 
are
 
addressed
 
in
geotechnical engineering for the project.
The
 
potential
 
for
 
acid
 
mine
 
drainage
 
issues
 
is
 
considered
 
low,
 
however
 
may
 
potentially
 
occur,
 
should
 
any
currently unidentified igneous intrusions be encountered.
 
 
Page 30 of 76
Based on current modelling, hydrology impacts are
 
limited and are currently managed to industry accepted
 
best
practices.
 
Future
 
potential
 
risks
 
and
 
mitigation
 
steps
 
will
 
require
 
continued
 
diligent
 
management
 
within
 
the
existing Environmental Authority (“EA”).
7.3
 
Geotechnical Data
Exploration boreholes and
 
the associated geophysical
 
logs are the
 
main source of
 
geotechnical data utilized
 
in
the design process and mine planning
 
for Curragh.
 
Geotechnical logging is not usually
 
performed on Resource
estimation core samples. Where geotechnical data is required,
 
specific core holes are drilled.
Knowledge of
 
the many
 
aspects of
 
regional and
 
local geology
 
also plays
 
a role
 
in determining
 
geomechanical
parameters.
 
Geostructural factors ended up becoming the most important element in defining the stability of the
excavation pits
 
in general
 
and of
 
the
 
highwall slopes.
 
In particular
 
the
 
mining
 
methods
 
applied in
 
this reserve
estimate align with those currently
 
employed in the Curragh project
 
and include conventional open-cut
 
dragline,
dozer push and truck-shovel methods.
 
The mine
 
design parameters are
 
specific to
 
the mining method
 
used, with
 
detailed wall design
 
parameters applied
to strip
 
and block
 
layouts and
 
access designed
 
specifically for
 
the allocated
 
equipment to
 
ensure geotechnical
stability is considered
Major design
 
parameter assumptions
 
are in
 
line with
 
Curragh design
 
standards as
 
applied over
 
many years
 
of
operation.
 
Geological interpretation
 
is ongoing
 
with support
 
for coal
 
recovery and
 
geotechnical studies
 
being provided
 
by
regular high wall mapping, in pit drilling, pre-production
 
drilling and refinements to fault and quality models.
Curraghs Safety
 
Health Management
 
System (SHMS)
 
provides instructions
 
on how
 
geotechnical hazards
 
and
risks are identified, reported, and managed.
 
To
 
ensure
 
that
 
appropriate
 
geotechnical
 
data
 
is
 
collected,
 
decisions
 
regarding
 
site
 
selection,
 
sampling
requirements,
 
data
 
management,
 
sample
 
analysis
 
and
 
reporting,
 
are
 
captured
 
as
 
part
 
of
 
Curraghs
 
planning
system.
 
is a curated selection of plans, processes, forms, registers and work instructions that directly relate to
geotechnical risk and geotechnical
 
sampling and testing. These documents
 
direct decision makers on
 
the correct
course
 
of
 
action
 
to
 
ensure
 
integrity
 
with
 
the
 
selection,
 
handling
 
and
 
reporting
 
and
 
analysis
 
of
 
geotechnical
samples and the identification and monitoring of geotechnical hazards. To
 
ensure document control and that the
current approved
 
document is
 
being followed,
 
these files
 
can be
 
accessed by
 
all workers,
 
at any time,
 
through
the Curragh Blackrock intranet.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Page 31 of 76
Table 7-3: Curragh Procedures
SHMS Category
Document Type
Document Name
Curragh
 
Principal
Hazard
Management Plan
Principal Hazard Management Plan
PLN-003
 
Principal
 
Hazard
 
Management
 
Plan
 
-
Geotechnical
Geotechnical
Processes
CPS PRO 3.1 Data Collection
CPS PRO 3.2 Data Management
CPS
 
PRO
 
3.3
 
Geotechnical
 
Assessment,
Analysis and Design
CPS
 
PRO
 
3.4
 
Review,
 
Publishing
 
and
Communication
CPS
 
PRO
 
3.5
 
Monitoring,
 
TARP
 
and
Reconciliation
CPS PRO 3.6 Audit and Improvement
Forms
CPS
 
FRM
 
3.1
 
Chain
 
of
 
Custody
 
Geotechnical
Analysis
CPS
 
FRM
 
3.2
 
Geotechnical
 
Sample
 
-
 
Test
Request Template
CPS
 
FRM
 
3.3
 
Geotechnical
 
Laboratory
 
Testing
Database – Template
CPS FRM 3.5 - Periodic Inspection
Plans
CPS PLN 3.0 Geotechnical System Plan
Registers
CPS
 
REG
 
3.1
 
Geotechnical
 
Communications
Protocol
CPS REG 3.2 RACI
CPS REG 3.3 Training Needs Analysis
CPS REG 3.4 Geotechnical Data Register
CPS
 
REG
 
3.5
 
Published
 
Geotechnical
 
Data
Register
Work Instructions
CPS WI 3.1 Non-Standard Data Checklist
CPS
 
WI
 
3.3
 
Standard
 
Laboratory
 
Tests
 
and
Sample Requirements
CPS
 
WI
 
3.4
 
Guideline
 
for
 
Engaging
 
a
Geotechnical Consultant
CPS
 
WI
 
3.5
 
Guideline
 
for
 
Commissioning
 
Third
Party Reviews
CPS
 
WI
 
3.6
 
Guideline
 
for
 
Commissioning
 
Non-
standard data
CPS
 
WI
 
3.7
 
Guideline
 
for
 
Geotechnical
 
Hazard
Mapping
CPS WI 3.8 Benchmarking
CPS WI 3.9 Guideline for Dump Planning
Geology
Plans
CPS PLN 2.0 Geology System Plan
Processes
CPS PRO 2.5 Exploration Data Collection
CPS
 
PRO
 
2.6
 
Geology
 
Data
 
and
 
Database
Management
CPS PRO 2.8 Operations Geotechnical Support
Work Instructions
CPS WI 2.1 Pit Inspections
CPS WI 2.3 Highwall Mapping
CPS WI 2.4 Sirovision Defect Mapping
CPS WI 2.5 Agisoft Defect Mapping
CPS WI 2.7 Issuing Hazard Management Advice
CPS WI 2.8 Geotechnical Data Collection
CPS WI 2.9 Geotechnical Reconciliation
CPS WI 2.12 Sinkhole Management
CPS WI 2.17 Weekly Geotechnical Report
CPS WI 2.19 Geotechnical Hazard Monitoring
CPS
 
WI
 
2.21
 
Establishing
 
Exploration
Requirements
CPS WI 2.23 Core Logging and Sampling
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Page 32 of 76
CPS
 
WI
 
2.24
 
Minimum
 
Borehole
 
Logging
Requirements
CPS WI 2.25 Reactive Ground Sampling
CPS WI 2.26 Sampling for Coal Quality Analysis
CPS WI 2.27 Geotech Sampling
CPS WI 2.28 Borehole Correlation
CPS WI 2.29 Sample Dispatch and Tracking
CPS WI 2.43 Borehole Peer Review
Forms
CPS
 
FRM
 
2.7
 
Geology
 
Checklist
 
for
 
Hazard
Mapping
CPS FRM 2.9 Weekly Geotechnical Report
CPS
 
FRM
 
2.10
 
Geotechnical
 
Inspection
Checklist - HighWalls and Endwalls
CPS
 
FRM
 
2.18
 
Geotechnical
 
Inspection
Checklist - In-pit Lowwall Spoil Dumps
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Page 33 of 76
7.4
 
2021 Geotech Sampling
 
7.4.1
 
Sample Locations
During
 
2021,
 
three
 
sites
 
in
 
Curragh
 
Main
 
and
 
three
 
sites
 
in
 
Curragh
 
North
 
were
 
selected
 
for
 
geotechnical
sampling. These comprised of four HQ sized diamond core
 
boreholes and two excavated test pits.
 
 
and
 
below highlight the location of the sample sites.
 
Figure 7-4: Geotechnical Sampling – Curragh Main (2021)
Hole ID / Test
 
Pit:
18330C
OLC Counterweight
Foundations
HME Workshop
Upgrade
SITE ID:
L7_GTGC_GTGC118
Test
 
Pit 1
Test
 
Pit 5
Type:
Geotechnical
Test
 
Pit
Test
 
Pit
Mining Lease:
ML80086
ML1878
ML1878
Location:
L-Pit
OLC Counterweight
Tower
HME Main Workshop -
Tyre Bay
Date Started:
16/04/2021
29/07/2021
13/05/2021
Date Completed:
18/04/2021
29/07/2021
13/05/2021
Final Depth:
96.00
2.50
1.00
Easting:
 
693605
688215.92
688770.96
Northing:
7401347
7401531.04
7400469.95
RL:
154.00
170.12
174.55
Figure 7-5: Geotechnical Sampling – Curragh North (2021)
Hole ID:
18332C
18342C
18323C
SITE ID:
BH_116C_geotech
BH_114C_geotech
SN_GT_01
Type:
Geotechnical
Geotechnical
Geotechnical
Mining Lease:
ML80110
ML80110
ML80110
Location:
S-Pit (UG)
S-Pit (UG)
S-Pit
Date Started:
23/04/2021
23/05/2021
26/03/2021
Date Completed:
30/04/2021
30/05/2021
28/03/2021
Final Depth:
258.06
234.06
98.53
Easting:
 
693548.40
693569.30
692005.78
Northing:
7416097.84
7415348.64
7419043.4
RL:
140.07
128.89
101.00
 
ex961p34i0.jpg
 
Page 34 of 76
Figure 7-6: Curragh North Sample Sites
 
 
ex961p35i0.jpg
 
Page 35 of 76
Figure 7-7: Curragh Sample Sites
 
 
Page 36 of 76
7.4.2
 
In Field Sample Collection
All HQ diamond core geotech
 
and test pit samples in
 
2021 were collected by trained
 
and competent geologists,
following Curragh
 
processes and work instructions for the appropriate selection, storage,
 
handling and transport
of samples (see
).
 
Lithology
 
and
 
defect
 
logging
 
was
 
undertaken
 
using
 
the
 
Australian
 
coal
 
industry
 
standard
 
–
 
ACARP
 
Project
CoalLog v3.1.
In the field, geologists over sampled rock mass units to allow greater freedom of choice for selecting appropriate
samples for further testing and to allow for spoilage from
 
transport or sample failure during the testing process.
 
HQ core samples were wrapped shortly after drilling to preserve initial conditions of the specimen and left stored
in a
 
safe location
 
away from
 
direct sunlight.
 
Photographic evidence
 
of the
 
core was
 
taken prior
 
to wrapping
 
to
allow for later
 
review. The final selection
 
of samples to
 
be used
 
for testing was
 
undertaken by chartered
 
engineers
once holes had been
 
depth corrected to geophysical logging.
 
Sample test selection was
 
determined by the target
seam, depth of
 
cover, level of weathering, geological uncertainty
 
within the area, location
 
of structures within rock
mass units and as actions from hazard mapping and geotechnical
 
reporting.
 
7.4.3
 
Samples collected from Test Pits
Samples
 
collected
 
from
 
Test
 
Pits
 
were
 
bagged
 
during
 
the
 
excavation
 
process
 
to
 
ensure
 
the
 
samples
 
were
representative
 
of
 
the
 
current
 
in-situ
 
condition
 
and
 
lithology
 
of
 
the
 
interval
 
being
 
collected.
 
Soil
 
samples
 
were
tested at Trilab to
 
determine that the soil properties
 
were suitable for the proposed
 
construction activities at that
site. In field Sample Testing
The only in field / in-situ geotechnical
 
sampling conducted in 2021 was
 
axial and diametrical Point Load Testing
(PLT) testing on HQ core
 
at four boreholes.
 
This work
 
was conducted
 
by geologists
 
during and
 
shortly
 
after drilling
 
had completed
 
to preserve
 
initial
 
core
characteristics.
 
Optimal testing frequency,
 
when possible, was every 0.10m within
 
the 2m of target seam roof, and
 
every 0.25m
in the immediate 2m of floor, and 2m-8m of roof. Photographs were taken before and after testing and the failure
mode of the samples was recorded to validate results.
Testing
 
was completed using a calibrated PLT
 
Model 6510 from HMA Geotechnical.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Page 37 of 76
Table 7-4: 2021 PLT
Hole ID
Mine
Number
 
of
PLTs
Conducted
Tested By
File Name
File
 
Location
 
(CCPL
Network)
18330C
Main
39
RandA
 
Field
Geologists
18330C_Point
Load
 
Testing
Logging
Q:\0.05
 
Geotechnical\3.0
GEOTECHNICAL
DATA
 
\3.4
 
Geotechnical
Boreholes\Curragh\18330C
18342C
North
146
RandA
 
Field
Geologists
18342C_Point
Load
 
Testing
Logging
Q:\0.05
 
Geotechnical\3.0
GEOTECHNICAL
DATA
 
\3.4
 
Geotechnical
Boreholes\Curragh
North\18342C
18323C
North
67
RandA
 
Field
Geologists
18323C_Point
Load
 
Testing
Logging
Q:\0.05
 
Geotechnical\3.0
GEOTECHNICAL
DATA
 
\3.4
 
Geotechnical
Boreholes\Curragh
North\18323C
18332C
North
186
RandA
 
Field
Geologists
18332C_Point
Load
 
Testing
Logging
Q:\0.05
 
Geotechnical\3.0
GEOTECHNICAL
DATA
 
\3.4
 
Geotechnical
Boreholes\Curragh
North\18332C
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Page 38 of 76
8
Sample preparation, Analysis and security
 
8.1
 
Prior to Sending to the Lab and Lab Procedures
Handling of coal and rock samples at Curragh follows standard procedures used in the coal mining
 
industry with
regard
 
to
 
preparation,
 
analysis
 
and
 
security.
 
Likewise,
 
laboratory
 
tests
 
are
 
performed
 
according
 
to
 
standards
utilized internationally.
 
In this instance, Curragh’s standards are based upon the Australian Standards which are
stated as applicable for this analysis.
Curragh
 
has
 
used
 
an
 
independent
 
laboratory
 
ALS
 
Coal
 
(formerly
 
ACIRL)
 
since
 
1983,
 
now
 
located
 
at
 
478
Freeman Rd, Richlands QLD 4077 for all
 
exploration coal quality determinations.
 
ALS is regularly benchmarked
against ISO 17025. by reputable organisations such as
 
(National Association of Testing
 
Authorities (NATA
 
).
The coal
 
laboratory performs
 
a specific workflow
 
of testing
 
that is
 
compatible for
 
testing of coking,
 
thermal and
PCI
 
coals.
 
The
 
testing
 
comprises
 
sample
 
pre-treatment,
 
raw
 
coal
 
quality
 
analysis,
 
washability
 
and
 
product
composite
 
testing
 
which
 
is
 
suitable
 
for
 
full
 
beneficiation
 
and
 
market
 
product
 
characterization.
 
This
 
testing
 
is
conducted under Australian and
 
international standards samples including but
 
not limited to those
 
listed in
Table 8-1: Analytical Test
 
Standards Numbers
Analytical Test
Standard No
Ash
AS1038.3
Ash Fusibility
AS1038.15
Carbon
AS1038.15
Crucible Swelling Number
AS1038.12.1
Dilatometer
AS1038.12.3
Fixed Carbon
AS1038.3
Float/Sink Analysis
AS4156.1
Gieseler
AS1038.12.4.1
Hydrogen
AS1038.6.4
Moisture (residual)
AS1038.3
Moisture Holding Capacity
AS1038.17
Nitrogen
AS1038.6.4
Oxygen
AS1038.16
Phosphorus
BS1016.14
Relative Density
AS1038.21.1.1
Size Analysis
AS3881
Gross Calorific Value
AS1038.5
Total
 
Moisture
AS1038.1
Total
 
Sulfur
AS1038.6.3.3
Volatile Matter
AS1038.3
Ash Analysis
AS1038.14.3
Proximate Analysis
AS 1038
It is the opinion of
 
the Qualified Person that
 
samples are collected, dispatched,
 
prepared, analysed and verified
adequately for subsequent Resource and evaluation and estimation.
 
 
 
 
Page 39 of 76
9
Data Verification
 
9.1
 
Procedures of Qualified Person
 
The Qualified Person
 
has a long history
 
of working with
 
Coronado geological
 
data and production
 
of geological
models
 
and
 
Resource
 
estimates.
 
The
 
data
 
verification
 
process
 
follows
 
a
 
detailed
 
process
 
for
 
confirming
 
the
accuracy of data upon which subsequent Resource and
 
reserve estimation is based. This process includes:
●
 
Collar survey checks relative to topographic surfaces
●
 
Checking downhole geophysics against interpreted coal thickness
●
 
Correlation seam sequence checks within boreholes
●
 
Correlation checks from hole to hole through sectioning
 
geological database
●
 
Checking seam thickness, mid-burden and structure plots
●
 
Validating mined
 
out polygons against LIDAR surfaces
●
 
Reconciliation of variance of model iterations
●
 
Reconciliation of variance of Resource estimate iterations
 
9.2
 
Opinion of Qualified Person
 
Some of the historical drilling in deeper parts of
 
MDL162 were not able to be fully validated due to
 
lack of original
survey records and geologists
 
written logs. Greater uncertainty
 
is placed on this
 
drilling data. However,
 
seismic
data indicates presence of strong
 
reflectors that is aligned with
 
boreholes records. Where data is
 
considered less
reliable, the coal resources are classified as lower confidence
 
resources i.e. Inferred.
 
In
 
the
 
opinion
 
of
 
the
 
Qualified
 
Person
 
Mr
 
Barry
 
Lay
 
there
 
has
 
been
 
sufficient
 
data
 
obtained
 
through
 
various
exploration
 
and
 
sampling
 
programs
 
and
 
mining
 
operations
 
to
 
support
 
the
 
geological
 
interpretations
 
of
 
seam
structure
 
and
 
thickness
 
for
 
coal
 
horizons
 
situated
 
on
 
the Curragh
 
property.
 
The
 
data
 
seem
 
to
 
be
 
of
 
sufficient
quantity and reliability to reasonably support the coal
 
Resource and coal reserve estimates in this TRS.
 
 
 
 
Page 40 of 76
10
Mineral processing and metallurgical testing
 
10.1
 
Testing Procedures and Sample Representatives
Laboratory testing procedures begin with a routine to ensure that each sample
 
is representative of typical run-of-
mine feed and Coal Prep Plant (CPP)
 
feed involving a process including drop shattering, dry
 
sizing, wet tumbling
and wet screening of coal samples.
These pre-treated samples are analysed
 
using a washability testing procedure
 
which estimates the yield and
 
ash
at various
 
density cut
 
points.
 
This information
 
is subsequently
 
used in
 
plant simulator
 
(developed
 
by A
 
and
 
B
Mylec Pty Ltd) to estimate yield and product quality after
 
applying plant and equipment efficiency factors.
Test
 
samples are
 
collected
 
as sufficient
 
density to
 
adequately represent
 
the Resource
 
at the
 
level of
 
reported
Resource and
 
reserve classification.
 
The testing
 
provides sufficient
 
information to
 
determine the
 
coal type
 
(ie.
Coking, PCI or Thermal). There has historically been a good
 
correlation between laboratory test results and train
or shipping results.
10.2
 
Laboratory Details
Curragh has used
 
an independent
 
laboratory now trading
 
as ALS Coal
 
(“ALS”) since
 
1983, now located
 
at 478
Freeman Rd, Richlands QLD 4077 for all exploration coal quality determinations.
 
ALS is accredited by National
Association of Testing Authorities
 
(NATA).
 
NATA
 
assesses that ALS have appropriately trained people, systems
and controls. A NATA
 
assessed coal quality laboratory is certified against
 
ISO/IEC 17025:2017.
Testing
 
is
 
conducted
 
against
 
appropriate
 
Australian
 
and
 
international
 
standards.
 
The
 
most
 
common
 
standard
numbers are as per
10.3
 
Assumptions and Prediction
Resource recovery
 
estimates are
 
based on
 
inputs of extensive
 
coal quality
 
borehole testing
 
which provide
 
run-
of-mine feed sizing, yield and expected product quality.
Expected
 
processing
 
product
 
yields
 
are
 
estimated
 
using
 
coal
 
borecore
 
information
 
and
 
coal
 
loss
 
and
 
dilution
assumptions validated through
 
mine reconciliations. A
 
process simulator
 
developed by AandB
 
Mylec applies
 
loss,
dilution, and plant efficiency
 
factors to derive final yield
 
and quality information at
 
each borehole datapoint. This
data is then modelled in Vulcan
 
software for import to mine scheduling
 
tools. There are no deleterious elements
that have
 
not already
 
been factored
 
in reserves
 
estimates and
 
modelling that
 
would have
 
significant impact
 
on
economic extraction.
 
highlights the loss and dilution assumptions used in the life
 
of mine plan.
10.4
 
Opinion of Qualified Person
 
Sufficient metallurgical testing data have been obtained through various exploration and sampling programs and
mining operations to reasonably support the coal Resource
 
and coal reserve estimates in this TRS.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Page 41 of 76
11
Mineral Resource Estimates
 
11.1
 
Assumptions, Parameters and Methodology
Coal Resources were estimated as of December 31, 2021.
Resology Pty Ltd independently created a geological model at
 
end of August 2021 in MAPTEK Vulcan modelling
software to define the coal Resources at Curragh. The process follows extensive validation of drillhole data. The
model included drillholes available in the company geological
 
database at end of August 2021.
 
The geological
 
model comprises
 
a 50m
 
grid
 
cell
 
model encompassing
 
all of
 
Curragh’s
 
tenements
 
and
 
seams
within
 
the
 
Rangal
 
Coal
 
Measures
 
only.
 
Seams
 
in
 
the
 
lower
 
Burngrove
 
Formation
 
have
 
not
 
been
 
modelled
 
or
estimated.
 
The
 
geological
 
model
 
includes
 
multiple
 
model
 
types
 
including
 
seam
 
structure,
 
base
 
of
 
quaternary,
 
base
 
of
weathering, raw quality, coking and thermal quality and simulated yield
 
and product quality. This model has been
used in all Resource and reserve estimates as discussed
 
in the TRS.
 
At Resource classification
 
stage, thickness and ash
 
cut-offs were applied.
 
Resource classification
 
methodology
and assumptions are discussed under section 11.4.
 
Coal Resources were calculated for each
 
Resource confidence polygon using a seam
 
model thickness grid and
an insitu density grid. The density grid was derived from
 
a seam ash to relative density regression equation
 
with
an
 
adjustment
 
for
 
estimated
 
insitu
 
moisture
 
(5.3%).
 
MAPTEK
 
RSVUTE
 
software
 
was
 
used
 
to
 
calculate
 
the
Resource tonnes for each seam and each Resource confidence
 
category.
 
Mining surveyed
 
face positions
 
as of
 
September 30,
 
2021, were
 
used as
 
a starting
 
point of
 
the estimate,
 
with
three months of mining depletion
 
(Sep 21–
 
Dec 21) applied to give
 
coal final Resource estimate at December 31,
2021.
 
11.2
 
Qualified Person’s Resource Estimate
Based on the assumptions
 
and methodology described,
 
a coal Resource
 
estimate, summarized in
,
was prepared as of December 31, 2021, for property controll
 
ed by Coronado.
 
Table 11
 
-1: Coal Resources Summary as of December 31, 2021
Area
Measured
Indicated
Meas + Ind
Inferred
Total
Ash%
Sulphur%
VM%
Inc in Reserves
255
26
281
2
283
17.3
0.55
19.0
Exc of Reserves
234
103
337
43
380
21.2
0.56
18.8
>15:1
94
81
175
100
275
17.0
0.39
18.0
Total
583
210
793
144
937
18.8
0.51
18.6
 
Notes (i) Coal Resource tonnes are reported on
 
a 5.3% in-situ Moisture basis
 
 
(ii) Coal qualities are reported on an air-dried
 
basis
 
(iii) Coal Resources are reported inclusive of
 
reserves
 
(iv) If the Resource was reported on a reserve
 
exclusive basis the Resource would be 655Mt
 
(v) The numbers have been rounded
 
and the totals may not add up.
 
(vi) The stripping ratio is a cookie cutter bank
 
cubic metres (bcm) of burden per insitu tonne of
 
coal
(vii) Total
 
Coal Resources, 937Mt,
 
are reported inclusive of Coal Reserves
 
The
 
total
 
coal
 
Resources
 
within
 
the
 
project
 
concession
 
boundaries
 
are
 
approximately
 
937
 
million
 
tonnes,
 
as
determined
 
at
 
an
 
effective
 
year
 
end.
 
Compared
 
to
 
established
 
criteria,
 
this
 
quantity
 
of
 
Resources
 
classifies
Curragh as a large coal mining proposition.
 
 
 
Page 42 of 76
11.3
 
Cut-off thickness and insitu ash
Open cut Resources have been estimated
 
where thickness is greater than 0.3
 
metres and a raw insitu
 
ash below
50% (air-dried basis).
 
Underground Resources have been estimated
 
where the insitu coal thickness
 
is greater than 1.5m. No ash
 
cut-
off has been applied as all reported seams have
 
low insitu ash (<~20% air-dried).
 
Underground Resources are
 
those that can potentially
 
be accessed from final
 
open-cut highwall using
 
a variety
of techniques including but not limited to board and pillar
 
mining techniques and highwall augering.
 
The split between open cut
 
and underground Resources has
 
been based on a 15:1
 
vertical insitu stripping ratio
(i.e. 15 bcm of waste
 
to one tonne of insitu
 
coal) as per previous
 
public Resource estimates. This
 
line has been
chosen as a
 
possible mining limit
 
considering the long-term
 
life asset of Curragh
 
assets and to
 
limit variation in
estimates from year to year based on short-term market
 
factors.
 
Deeper potential mineralization that
 
is poorly defined
 
through exploration or not
 
easily accessible from final
 
open-
cut highwalls has been excluded from the Resource
 
estimate.
 
11.4
 
Resources Exclusive of Reserves
 
Curragh tenements contain Resources
 
exclusive of Reserves which
 
have not been included
 
in the current mine
plan (
). Reasons that may preclude elevation
 
for Resources to Reserves
 
include, but are not limited
to:
 
●
 
Insufficient
 
data
 
and/or
 
incomplete
 
technical
 
studies
 
to
 
justify
 
the
 
conversion
 
of
 
coal
 
Resources
 
to
Reserves
 
●
 
Open cut Resources that may not justify conversion
 
to Reserves with current mining costs and/or
 
short-
term product price assumptions
 
Considering
 
the
 
long-life
 
of
 
Curragh
 
assets,
 
changing
 
technologies
 
and
 
varying
 
market
 
conditions
 
over
 
time
provide there will be an option to revise Reserves periodically.
 
11.5
 
Initial Economic Assessment
 
●
 
There are
 
380Mt of
 
Resource suitable
 
for open
 
cut mining
 
outside of
 
the reserves.
 
The cost
 
of mining
these Resources has been estimated using internal
 
cashflow models over the life of
 
mine plan, the cost
is estimated at
 
110
 
USD/product tonne (Prdt).
 
Product price was
 
estimated by creating
 
polygons of the
areas covered by the 380Mt of
 
Resource and using the simulation
 
grids in Vulcan to
 
estimate a primary
and secondary yield for the Mammoth, Mackenzie and
 
Pollux seams. These yields were then applied
 
to
a semi hard coking coal
 
and export thermal product
 
price. The resultant
 
product price was estimated
 
to
be 143
 
USD/Prdt and the margin 33 USD/Prdt.
●
 
There are 275MT of Resource suitable for underground
 
mining using the definition >15:1 stripping ratio.
The stripping ratio is a high
 
level cut off used to allocate
 
different seam mining thicknesses
 
for the open
cut and underground. The approach taken to estimate the
 
mining margin of these was:
a.
 
Estimate an average
 
mining cost using
 
Wood Mackenzie underground mining
 
costs, the average
cost of ten underground mines in Queensland was estimated
 
to be 90 USD/Prdt.
 
b.
 
Product price was
 
estimated by creating
 
polygons of the
 
areas covered by
 
the 275M Resource
tonnes and
 
using the
 
simulation grids
 
in Vulcan
 
to estimate
 
a primary
 
and secondary
 
yield for
the
 
Mammoth,
 
Mackenzie
 
and
 
Pollux
 
seams.
 
These
 
yields
 
were
 
then
 
applied
 
to
 
a
 
semi
 
hard
coking coal
 
and export
 
thermal product
 
price. The
 
resultant product
 
price was
 
estimated to
 
be
147 USD/Prdt and the margin 57 USD/Prdt.
11.6
 
Resource Classification and Estimate Uncertainty
 
Resource Classifications have been based on a borehole
 
geostatistical study conducted in 2020:
 
Curragh Drillhole Spacing Analysis Project; Resology
 
Pty Ltd; October 2020
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Page 43 of 76
The project involved exploratory data analysis (“EDA”) of seam thickness and quality information to define seam
domains. Each seam
 
domain was then
 
assessed using drillhole
 
spacing analysis (“DHSA”) to
 
calculate the global
estimation
 
precision
 
(“error”)
 
for each
 
major
 
seam.
 
A
 
10-year
 
mining
 
rate
 
was
 
then
 
used
 
to
 
calculate
 
error
 
at
different drillhole spacings for use in Resource
 
classification process.
 
The
 
critical
 
Resource
 
variables
 
analyzed
 
were
 
seam
 
thickness
 
and
 
insitu
 
ash.
 
These
 
were
 
chosen
 
for
 
the
Resource
 
estimate
 
classification
 
as these
 
parameters
 
are the
 
main
 
drivers
 
of economics.
 
Ash exhibits
 
a very
good correlation to density and hence density was not analyzed separately.
 
Ash also exhibits a good correlation
to total product yield, a proxy for product tonnes. Other quality parameters are well with market acceptability and
not reviewed separately.
 
As all seam
 
exhibit different
 
variability for thickness
 
and ash in
 
different domains,
 
a variety of
 
drillhole spacings
have
 
been
 
applied.
 
In
 
summary,
 
the
 
following
 
drillhole
 
spacing
 
ranges
 
(
)
 
have
 
been
 
applied
 
for
thickness and
 
ash to
 
define reported
 
Resource categories.
 
The value
 
chosen will
 
depend on
 
which seam,
 
and
which domain is being estimated. The drillhole
 
spacings for a given category tend
 
to be higher at Curragh North
compared to other parts of the deposit due to lower seam
 
variability.
Table 11
 
-2: Ranges of drillhole spacing used to define coal Resource
 
categories (metres)
 
Measured
Indicated
 
Inferred
 
Thickness
 
500-1000m
 
800-2400m
 
2000-4000m
 
Ash
 
800-1000m
 
1400-1800m
 
3500m
 
 
For
 
reported
 
categories
 
the
 
following
 
precision
 
levels
 
apply
 
(
).
 
Resources
 
reported
 
as
 
Measured
would be expected to be within +/- 10% on if mined over
 
a 10-year mining timeframe.
Table 11
 
-3: Resource Estimate Global Precision
Category
Global Estimation Precision
Measured
+/- 10%
Indicated
+/- 10%-20%
Inferred
+/- 20%-50%
 
11.7
 
Qualified Person ’s Opinion
 
It
 
is
 
the
 
Qualified
 
Person’s
 
opinion
 
that
 
the
 
Resource
 
estimate
 
is
 
an
 
accurate
 
and
 
fair
 
representation
 
of
 
the
Curragh’s coal
 
Resource and
 
that all
 
issues relating
 
to relevant
 
technical and
 
economic factor
 
can be resolved
by further work and/or improvement in
 
cost base over time with
 
innovation and improving mining technology over
a long mine life.
 
Sufficient exploration data
 
is supported by a
 
longstanding history of
 
successful coal production
at Curragh, further increasing the confidence of the Resource
 
estimates.
11.8
 
Qualified Person ’s Credentials
Mr.
 
Barry
 
Lay,
 
BSc
 
Geology
 
(Hons);
 
MAusIMM;
 
possesses
 
the
 
necessary
 
credentials
 
as
 
a
 
member
 
of
 
the
AusIMM to serve as a Qualified Person
 
for this TRS.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Page 44 of 76
12
Mineral Reserve Estimates
Reserve
 
tonnage
 
estimates
 
provided
 
herein
 
report
 
coal
 
Reserves
 
derived
 
from
 
the
 
in-situ
 
Resource
 
tonnes
presented
 
in
,
 
and
 
not
 
in
 
addition
 
to
 
coal
 
Resources.
 
Proven
 
and
 
probable
 
coal
 
Reserves
 
were
derived
 
from
 
the
 
defined
 
coal
 
Resource
 
considering
 
relevant
 
mining,
 
processing,
 
infrastructure,
 
economic
(including
 
estimates
 
of
 
capital,
 
revenue,
 
and
 
cost),
 
marketing,
 
legal,
 
environmental,
 
socio-economic
 
and
regulatory
 
factors.
 
The
 
Mineral
 
Reserve
 
estimates
 
for
 
Curragh
 
have
 
been
 
determined
 
and
 
are
 
presented
 
in
 
and
. The numbers
 
are based on
 
the results and
 
findings of the
 
Qualified Persons
 
and
their
 
application
 
of
 
the
 
relevant
 
modifying
 
factors
 
to
 
the
 
aforementioned
 
Resource
 
model.
 
The
 
Reserves
presented
 
consider
 
only
 
the
 
Measured
 
and
 
Indicated
 
Resources
 
that
 
have
 
subsequently
 
been
 
converted
 
to
Proven and Probable Reserves.
Table 12-1: ROM Coal Reserve Summary as of December 31, 2021 (Mt)
Curragh
 
Proven
Probable
Total
Coal Quality of Reserve inclusive of loss and dilution (adb)
Mt
Mt
Mt
Ash (%)
TS (%)
VM (%)
ROM
243
23
266
28.4
0.5
16.6
Table 12-2: Coal Reserve Summary (Marketable Sales Basis) as of December 31, 2021 (Mt)
Demonstrated Coal Reserves
(Wet Tonnes, Washed
 
or Direct Shipped, Mt)
Quality (ad)
Type
By Reliability Category
Proven
Probable
Total
Ash%
Sulphur%
VM%
CV Kcal/kg
Metallurgical
149
13
162
8.4
0.4
19.9
Thermal
49
5
54
17.7
0.4
16.3
6,286
Total
198
18
215
10.7
0.4
19.0
a)
 
Curragh's
 
Reserves,
 
as stated,
 
are 100 percent
 
of the site
 
Reserves,
 
including
 
all Reserves
 
in
the Curragh
 
Project
.
b)
All tonnes are millions of metric tonnes (Mt).
c)
 
ROM Coal
 
Reserves
 
have been
 
stated on
 
a 7.5%
 
Moisture
 
basis.
d)
 
Marketable
 
Reserves
 
are stated
 
on a
 
11%
 
moisture
 
basis,
including
 
a combination
 
of surface
moisture
 
and inherent
 
moisture.
e)
 
Coal qualities
 
are reported
 
on an
 
air-dried basis
 
,
 
CV is
 
reported
 
on a gross
 
as received
 
basis.
f)
Typical marketable coal products
 
produced range from low-ash, hard coking coal to mid-ash semi-hard
coking coal, a variety of low-volatile PCI products ranging
 
from low to high ash, and thermal coal
g)
Most tonnes and quality information have been rounded, hence small differences may be present in the
totals.
 
h)
 
CV is
 
only reported
 
for thermal
 
coal.
Total Reserves within Curragh’s concession boundaries are
 
approximately 215 million tonnes
 
of marketable coal.
 
12.1
 
Assumptions, Parameters and Methodology
The
 
author
 
adopted
 
reasonable
 
assumptions
 
when
 
applying
 
the
 
appropriate
 
modifying
 
factors
 
to
 
Curragh’s
Resources
 
to
 
derive
 
reserve
 
estimates.
 
Such
 
modifying
 
factors
 
include
 
mining,
 
metallurgical,
 
economic,
marketing, legal, environmental, social and governmental factors.
 
Proven Coal Reserves
 
are the economically
 
mineable part of
 
a measured coal
 
Resource, adjusted for
 
diluting
materials
 
and
 
allowances
 
for
 
losses
 
when
 
the
 
material
 
is mined.
 
It
 
is
 
based
 
on
 
appropriate
 
assessment
 
and
studies
 
in
 
consideration
 
of
 
and
 
adjusted
 
for
 
reasonably
 
assumed
 
modifying
 
factors.
 
These
 
assessments
demonstrate that extraction could be reasonably justified at
 
the time of reporting.
 
Probable
 
Coal
 
Reserves
 
are
 
the
 
economically
 
mineable
 
part
 
of
 
an
 
indicated
 
coal
 
Resource,
 
and
 
in
 
some
circumstances a
 
measured
 
coal Resource,
 
adjusted for
 
diluting materials
 
and allowances
 
for losses
 
when the
 
 
 
Page 45 of 76
material
 
is
 
mined.
 
It
 
is
 
based
 
on
 
appropriate
 
assessment
 
and
 
studies
 
in
 
consideration
 
of
 
and
 
adjusted
 
for
reasonably assumed
 
modifying factors.
 
These assessments
 
demonstrate
 
that extraction
 
could be
 
reasonably
justified at the time of reporting.
 
Upon completion of delineation and calculation of coal Resources, a LOM plan was
 
generated for Curragh.
 
The
Mine plan was generated
 
based on the forecast
 
mine plan and permit
 
plan using current property
 
control limits,
modifications to geologic mapping, or other factors determined
 
during the evaluation.
At the Curragh, a minimum mining height of 0.5 metres was used for open cut operations being employed.
 
Coal
seams
 
thinner
 
than
 
the
 
assigned
 
mining
 
height
 
and
 
greater
 
than
 
45%
 
insitu
 
ash
 
were
 
assigned
 
to
 
waste.
 
A
dilution of 225mm and a coal loss of 125mm were applied to every seam. Plant recovery is a function of in-seam
recovery and plant efficiency factor.
 
ROM and product data outputs from the LOM plan sequencing
 
were processed into reports and summarized on
an annual basis for
 
processing into the economic model. Product tonnes
 
are reported at 11 percent moisture and
represent the saleable product from the Property.
 
Pricing data
 
as provided
 
by
 
Coronado
 
marketing
 
team
 
is based
 
on internationally
 
recognised
 
forecasting
 
and
Curragh’s own view.
The coal
 
Resource mapping
 
and estimation
 
process, described
 
in the
 
report, was
 
used as
 
a basis
 
for the
 
coal
reserve estimate.
 
Proven and probable coal Reserves were derived from
 
the defined coal Resource considering
relevant
 
processing,
 
economic
 
(including
 
technical
 
estimates
 
of
 
capital,
 
revenue,
 
and
 
cost),
 
marketing,
 
legal,
environmental, socio-economic, and regulatory factors
 
and are presented on a moist, recoverable basis.
Points of observation include exploration
 
drill holes, degas holes, and mine
 
measurements which have been fully
vetted and processed into
 
a geologic model.
 
The geologic model is
 
based on seam depositional
 
modelling, the
interrelationship
 
of
 
overlying
 
and
 
underlying
 
strata
 
on
 
seam
 
mineability,
 
seam
 
thickness
 
trends, the
 
impact
 
of
seam
 
structure
 
(i.e.,
 
faulting),
 
intra-seam
 
characteristics,
 
etc.
 
Once
 
the
 
geological
 
model
 
was
 
completed,
 
a
statistical analysis, described
 
in Section 11.1.1
 
was conducted and up
 
to a 1 kilometre
 
radius from a valid
 
point
of observation was selected to define Measured Resources
 
.
 
Likewise,
 
the
 
distance
 
between
 
1
 
and
 
2
 
of
 
a
 
kilometre
 
radius
 
was
 
selected
 
to
 
define
 
Indicated
 
Resources.
 
Indicated Resources may convert to Probable Reserves
 
.
 
No Inferred coal was used in the Reserve estimation
12.2
 
Qualified Person Credentials
Mr. Paul
 
Wood BE
 
(Mining) MAusIMM(CP)
 
possesses the
 
necessary experience
 
and credentials as
 
a member
of the AusIMM to serve as a Qualified Person
 
for this TRS.
12.3
 
Qualified Person ’s Opinion
It is the opinion
 
of Mr.
 
Paul Wood that
 
the estimates accurately
 
reflect Reserves
 
as defined by the
 
JORC Code
and
 
SEC.
 
Sufficient
 
exploration
 
data
 
is
 
supported
 
by
 
a
 
longstanding
 
history
 
of
 
successful
 
coal
 
production
 
at
Curragh, further
 
increasing
 
the confidence
 
of the
 
reserve
 
estimates.
 
The application
 
of
 
modifying
 
factors
 
are
supported by a combination of laboratory-based data
 
and practical historical knowledge at Curragh.
13
Mining Methods
 
Coal
 
mine
 
development
 
at
 
Curragh
 
is
 
accomplished
 
by
 
surface
 
mining
 
methods
 
and
 
has
 
been so
 
historically
since
 
the
 
mine’s
 
inception.
 
The
 
mine
 
characteristics
 
and
 
output
 
levels
 
allow
 
it
 
to
 
be
 
ranked
 
as
 
a
 
large
 
coal
operation
 
when
 
compared
 
to
 
domestic
 
producers
 
in
 
Australia
 
and
 
worldwide.
 
Because
 
of
 
its
 
size
 
Curragh
operates 4 large electric draglines, 1 large electric
 
shovel and a fleet of smaller contractor excavators. These are
typical of large
 
open cut mines
 
in the Bowen
 
Basin in Central
 
Queensland as they
 
offer the cheapest
 
and most
productive ways of stripping large amounts overburden. These
 
mining methods are used for the
 
life of mine plan.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Page 46 of 76
Life of mine planned production
 
rates vary from 3 Mt
 
ROM per annum (pa) at
 
the end of the schedule
 
to a peak
of 18 Mt ROM
 
pa based on
 
the amount of
 
digger fleets deployed.
 
The mining sequence
 
starts
 
with clearing the
vegetation,
 
removing
 
the topsoil
 
and stockpiling
 
for rehabilitation.
 
Where
 
an area
 
can be
 
dug without
 
blasting
excavators
 
free
 
dig
 
the
 
overburden,
 
otherwise
 
drills
 
are
 
placed
 
on
 
the
 
bench
 
and
 
the
 
area
 
is
 
drilled
 
out
 
then
loaded with explosives and blasted.
 
If the depth of
 
overburden is too deep for
 
the dragline to reach
 
top of coal,
 
truck and excavators mine the
 
material
down to the dragline working
 
height, this material is
 
placed in low wall dumps
 
in the dragline spoil. The
 
dragline
is then scheduled to remove the remaining overburden material. The final step in
 
the coal extraction sequence is
coal mining. Once the
 
face has advanced far
 
enough the low wall
 
dumps are contoured and
 
the stockpiled topsoil
placed onto the contoured surface, this signals the start
 
of the rehabilitation process.
Total
 
waste volume stripped varies between 19 Mbcm pa to
 
208 Mbcm pa.
Product coal is washed in 2 coal preparation plants, life of mine product
 
varies between 2 Mt pa at the end of the
schedule to 13 Mt pa.
Coal loss and dilution by
 
seam is highlighted in
 
In addition, any seam with
 
an insitu ash greater than
45% is wasted as is any seam less than 0.5m thick.
Table 13-1
ITEM
 
 
Unit
 
 
Value
 
R&F Loss
m
0.15
R&F Dilution
m
0.23
Overall loss factor
%
2.0
Dilution density
t/bcm
2.4
Dilution Ash
%
90
Plans are being
 
made to mine
 
final high walls
 
using high wall
 
mining methods,
 
production rates
 
vary from 30Kt
ROM to 70Kt ROM per month.
The scheduled
 
mine life
 
is highlighted
 
in
 
and
 
Mining block
 
dimensions are
 
100m *
70m.
13.1
 
Geotech and Hydrology
The main geotechnical influence is related to geostructural factors. One feature, the Jellinbah thrust fault, affects
key portions of the pit design
 
and stability.
 
The regional angle of dip
 
of both rock and coal strata
 
is 3 degrees to
the East direction, however there are sectors with localized angles
 
as high as 25 degrees, which require greater
geotechnical attention due to structural disturbances.
 
Geotechnical design at
 
Curragh is evaluated
 
with a modern
 
and well-established blend
 
of analytical and
 
empirical
methods. There is
 
an emphasis on the
 
various parameters of rock
 
discontinuities, e.g. bedding and
 
joint systems,
including
 
Geomechanics
 
Classification
 
with
 
the
 
determination
 
of
 
rock
 
mass
 
rating
 
(RMR)
 
and
 
compared
 
to
components of the Q-System. Based on this work, the
 
typical site wide design slope
 
angles are
Highwall slopes:
β = 65 degrees
Endwall slopes:
β = 53 degrees
 
Shallower
 
design
 
face
 
angles
 
are
 
used
 
for
 
areas
 
of
 
intensive
 
fracturing
 
or
 
other
 
negative
 
geotechnical
characteristics. The
 
overall pit
 
geometry at
 
Curragh North
 
is highlighted
 
in
 
These design
 
angles
have proven effective in managing slope stability.
Truck and
 
excavator waste
 
dumps are typically
 
designed with slope
 
angles between
 
35 and 37
 
degrees, these
are placed over the top of dragline spoil.
 
shows a typical design for Curragh North.
 
ex961p47i1.jpg ex961p47i0.jpg
 
Page 47 of 76
Figure 13-1: Waste (Spoil) Dump Curragh North
The mining
 
engineering approach
 
at Curragh
 
includes a
 
system for
 
managing the
 
geotechnical risk,
 
and when
applicable, the implementation
 
of control and
 
corrective actions. This
 
geotechnical risk management
 
is performed
before mining commences in each strip, the work covers:
●
 
identification of geotechnical hazards
●
 
planning and design of risk controls
●
 
monitoring performance against design
●
 
devising controls and triggering action responses
●
 
managing change
●
 
formal audit and review process
Ground water mostly
 
impacts coal mining
 
and is managed
 
by in pit
 
pumping. Ground
 
water can also
 
affect low
wall stability
 
unless managed
 
effectively
 
via in
 
pit pumping.
 
The average
 
rainfall
 
is relatively
 
small in
 
quantity,
approximately 630 mm
 
per year. Water bearing strata
 
are generally found
 
in the sand
 
and gravel alluvial
 
deposits.
 
The
 
interburden
 
in the
 
Rangal
 
formation
 
can
 
be
 
an
 
aquifer,
 
but
 
it
 
is typically
 
confined
 
by
 
impermeable
 
layers
except at the outcrop.
 
The coal seams are the principle aquifers in the Rangal
 
Coal Measures.
Mine management at Curragh monitors groundwater inflows and
 
maintains comprehensive models.
Figure 13-2
 
and Figure
 
13-3 highlight
 
the total
 
waste moved
 
and coal
 
mined in
 
the 2021
 
life of
 
mine schedule
that supports the disclosure of coal reserves.
Figure 13-2: Total Waste by Activity
 
ex961p48i0.jpg
 
Page 48 of 76
Notes DL = dragline, TS = Truck and Shovel, TE = Truck and Excavator.
Figure 13-3: Coal Mined
Notes Cu = Curragh CN = Curragh North MDL
 
= Mineral Development License.
Contractors are employed for the pre strip, post strip and
 
coal mining activities. Thiess currently operate
 
9 fleets
at
 
Curragh
 
North,
 
while
 
Goldings
 
currently
 
operate
 
7
 
fleets
 
at
 
Curragh.
 
The
 
life
 
of
 
mine
 
plan
 
excavators
 
are
highlighted in
, up to
 
20 fleet
 
are scheduled,
 
however,
 
the maximum
 
fleet size
 
in any
 
single year
 
is
17. Operations are conducted around the clock on day
 
and night shift.
 
 
ex961p49i0.gif
 
Page 49 of 76
Table 13-2
Additional
 
production
 
equipment
 
includes
 
4 electric
 
draglines,
 
shared
 
between
 
Curragh
 
North
 
and
 
Curragh,
 
a
fleet
 
of
 
overburden
 
drills
 
and
 
dozers.
 
Ancillary
 
support
 
equipment
 
includes
 
graders,
 
water
 
trucks
 
and
 
mining
equipment floats.
 
 
ex961p50i0.jpg
 
Page 50 of 76
Figure 13-4: Final Mined Reserves
14
Process and recovery methods
 
14.1
 
Description
Curragh has two coal
 
preparation plants CPP1
 
and CPP2. CPP1
 
is the oldest
 
of the two processing
 
plants and
has
 
a
 
documented
 
nameplate
 
capacity
 
of
 
1100
 
t/h
 
(as
 
received).
 
The
 
CPP
 
processes
 
the
 
32mm
 
x
 
0.7
 
mm
fractions
 
through
 
a
 
2-stage
 
dense
 
medium
 
cyclone
 
(“DMC”)
 
circuit
 
operating
 
in
 
a
 
low
 
density
 
/
 
high
 
density
 
 
Page 51 of 76
configuration to produce a low ash primary and a
 
high ash secondary product respectively.
 
The primary cyclone
underflow has the functionality to bypass the secondary
 
DMC circuit and report directly as a secondary product.
The minus 0.7 mm fraction is directed to a
 
Jameson cell flotation circuit for processing. The concentrate from the
flotation
 
circuit
 
is
 
pre-thickened
 
via
 
classifying
 
cyclones
 
before
 
reporting
 
to
 
horizontal
 
belt
 
vacuum
 
filters
 
and
screen
 
bowls
 
for further
 
dewatering
 
prior
 
to
 
being
 
conveyed
 
to
 
the
 
primary
 
product
 
conveyor.
 
The
 
classifying
cyclone overflow is directed to
 
a coal thickener,
 
where the thickened product material
 
is then combined with the
horizontal belt vacuum filter feed.
 
These processing methods are typical
 
of what is used
 
at other coal mines throughout
 
the Bowen Basin in Central
Queensland, the technology is tried and proven.
CPP 2 has a
 
documented nameplate capacity
 
of 1200 t/h (as
 
received) with a capability
 
of up to 1350
 
t/h when
processing selected feed types.
CPP2 largely mirrors CPP 1 with the following exceptions.
●
 
Raw coal
 
screens have
 
been installed
 
as an
 
option to
 
separate the
 
plant feed
 
material into
 
a plus
 
and
minus
 
12
 
mm
 
size
 
fraction.
 
This
 
functionality
 
directs
 
the
 
higher
 
ash,
 
coarse
 
fraction
 
directly
 
to
 
the
secondary dense medium circuit reducing the circuit loading
 
of the primary circuit.
●
 
A spirals
 
circuit
 
has been
 
included
 
in
 
the
 
plant
 
to
 
reprocess
 
the flotation
 
tailings
 
stream.
 
The
 
product
stream
 
from
 
the
 
spirals
 
circuit
 
is
 
directed
 
to
 
a
 
splitter
 
box
 
which
 
allows
 
the
 
recovered
 
product
 
to
 
be
diverted to
 
either
 
the primary
 
product or
 
secondary
 
product streams
 
via the
 
screen-bowls
 
or fine
 
coal
centrifuges respectively.
 
 
 
ex961p52i0.jpg
 
Page 52 of 76
Figure 14-1: Aerial view of the CHPP facilities and associated
 
infrastructure
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Page 53 of 76
14.1.1
 
Raw Coal Handling
The 22
 
km overland conveyor
 
from Curragh North
 
is an
 
integral component of
 
the coal transportation
 
and logistics
system at
 
Curragh operation.
 
The two
 
ROM systems
 
are important
 
features of
 
the mine
 
operations
 
to ensure
blending of the ROM
 
coals for the CPPs.
 
A series of conveyors,
 
a ROM crushed
 
stockpile and small
 
ROM bins
allows flexibility in the operations
 
of the two CPPs, however this flexibility.
14.1.2
 
Product Handling
Product
 
coal
 
is
 
stockpiled
 
on
 
to
 
either
 
the
 
primary
 
or
 
secondary
 
product
 
stockpiles.
 
Two
 
stockpiles
 
of
approximately
 
190,000
 
tonnes
 
each
 
are
 
available
 
for
 
metallurgical
 
and
 
steaming
 
coal
 
products.
 
Multiple
stockpiles of differing
 
quality can be built
 
on the overall stockpile
 
footprint and reclaimed discretely
 
by means of
the 4400
 
t/h bucket
 
wheel reclaim
 
system. The
 
two installed
 
product stacker
 
s
 
have the
 
capability
 
to slew
 
180
degrees and stack to an emergency stockpile area. The emergency
 
stockpile area is not able to be recovered.
14.1.3
 
Train Loadout
The processed
 
coal is
 
loaded onto
 
trains via
 
a single
 
dedicated bucket
 
wheel reclaimer
 
which loads
 
two 580
 
t
capacity
 
bins,
 
designed
 
to
 
load
 
both
 
thermal
 
and
 
metallurgical
 
coal.
 
In
 
an
 
emergency,
 
there
 
is
 
a
 
dozer
 
push
loading system in place should there an electrical outage at the mine site, which reduces the risk of train loading
system.
14.1.4
 
Reject and Tailings
Coarse reject is conveyed from each CPP
 
to a common reject bin for collection
 
by mine trucks and deposited
 
in
the allocated
 
reject dump,
 
as capping
 
material for
 
the tailings
 
dam or
 
as part
 
of the
 
rehabilitation process. Flotation
tailings
 
material
 
is
 
passed
 
through
 
thickening
 
cyclones
 
with
 
the
 
underflow
 
directed
 
to
 
a
 
fine
 
coal
 
dewatering
screen
 
for
 
dewatering.
 
The
 
screen
 
overflow
 
is
 
combined
 
with
 
the
 
coarse
 
reject
 
material
 
and
 
conveyed
 
to
 
the
reject bin.
 
The remaining
 
flotation tailings
 
material from
 
either CPP
 
is directed
 
to dedicated
 
tailings thickeners
with the
 
underflow
 
pumped
 
to the
 
tails
 
storage
 
facility
 
(TSF).
 
The LOM
 
TSF
 
is currently
 
a
 
project
 
in
 
progress
assessing the use
 
of the void
 
at Pit B.
 
Water recovered
 
from the in-pit
 
TSF is included
 
as part of
 
the site water
balance model and is reused within the site to offset the
 
volume of purchased raw water.
14.1.5
 
Operating performance
The
 
two
 
processing
 
plants
 
have
 
a
 
nominal
 
nameplate
 
throughput
 
capacity
 
of
 
2300
 
t/h
 
on
 
a
 
combined
 
basis.
Applying the
 
nominal throughput
 
capacity
 
with
 
industry
 
standard
 
practice of
 
6500
 
– 7000
 
operating
 
hours
 
per
annum the range of achievable operating plant throughput
 
would be as follows:
Table 14-1: CPP Capacity
Nameplate Feed
(t/hr)
Operating Hours
(per year)
Plant
Throughput (t
per year)
Forecast Yield (%)
Total Processed
Product (t per
year)
2,300
6,500
14,950,000
78
11,661,000
2,300
7,000
16,100,000
78
12,558,000
Historical
 
operating
 
performance
 
indicates
 
that
 
the
 
combined
 
facilities
 
have
 
achieved
 
a
 
maximum
 
processed
throughput of 15.2 Mtpa
 
ROM in recent years
 
and would require further
 
increases in utilised hours
 
to be achieved
to exceed this value. The ability to bypass selected raw feed material directly as a thermal product is considered
an accepted site practice and
 
where quality shortfalls
 
are realised can be blended
 
with washed thermal product
to achieve the required product specification and the required
 
annual product volumes.
 
 
 
Page 54 of 76
15
Infrastructure
 
Curragh owns
 
and operates
 
the necessary
 
coal load-out
 
system for
 
dispatches via
 
rail line
 
to the
 
port at
 
Gladstone
or the Stanwell Power Plant.
 
Moreover, the
 
mine has maintenance facilities
 
for the fleet of mining
 
equipment as
well as office buildings for the mine staff
 
and personnel.
 
15.1.1
 
Water
Curragh obtains its water requirement from two main
 
sources:
A supply agreement with SunWater Ltd (“SunWater”)
 
from the Bedford Weir and Fairburn Dam
Pollution control dams and old pits that capture rainfall and water
 
from dewatering activities.
Curragh is also entitled to draw 708 M gallons per year through an offtake agreement with SunWater.
 
Recycling
can significantly reduce the need for purchased water.
 
15.1.2
 
Power
Curragh has
 
a dedicated
 
66kv
 
power supply
 
to support
 
the mining
 
operations
 
with
 
a capacity
 
of up
 
to 57MW
sourced from the main
 
grid power.
 
The substation is located on
 
the southwest corner of the
 
lease and both 66kv
and 22kv distribution networks
 
to supply the draglines, shovel and CHPP.
 
Part of the site electrical system
 
was
upgraded in 2015 at the time of upgrading the ROM crushing
 
station.
CCPL’s
 
forecast plans
 
for Curragh
 
suggest that
 
the power
 
needs of
 
the mining
 
operations can
 
be met with
 
the
current system and supply contracts.
15.1.3
 
Roads
Curragh
 
has
 
a
 
network
 
of
 
haul
 
roads
 
and
 
ramps
 
connecting
 
the
 
various
 
working
 
areas
 
with
 
the
 
operation.
 
Established
 
national
 
primary
 
highways
 
such
 
as
 
Route
 
A4
 
(Capricorn
 
Highway)
 
connect
 
and
 
run
 
through
Blackwater and between the town to Emerald to the west
 
and Rockhampton to the east.
15.1.4
 
Rail
Curragh is linked to the main
 
Blackwater rail link to the Port of
 
Gladstone’s RG Tanna
 
Coal Terminal (RG Tanna)
and Wiggins Island
 
Coal Export Terminal (WICET) coal terminals by
 
dedicated rail loop
 
balloon with a
 
Marketable
Coal capacity of 14 million tonnes per year.
 
Train capacity averages 8,500 tonnes at a loading capacity of 4,400
t/h with an average 28 trains loaded every week (with a maximum
 
capacity of 36 trains).
Curragh is located 290 km
 
from the Port of Gladstone.
 
Under an existing agreement,
 
CCPL has the right to
 
rail
up to 11.0
 
Mtpa, plus surge of rail capacity
 
on the Blackwater system.
 
This network is operated by Aurizon
 
and
links Central
 
Queensland
 
mines from
 
the Bowen
 
Basin to
 
two export
 
terminals
 
at the
 
Port of
 
Gladstone
 
– RG
Tanna
 
and WICET,
 
under two long term rail haulage agreements with
 
Aurizon.
Domestically,
 
Curragh’s steam
 
coal is
 
railed 160
 
km to
 
the Stanwell
 
Power Station
 
near Rockhampton.
 
Under
the Stanwell Coal Agreement, Stanwell is
 
responsible for the transport of the
 
steam coal to the power station
 
and
pays for the railing costs.
15.1.5
 
Port
Curragh’s export coal
 
is shipped either from
 
RG Tanna
 
or WICET terminals at
 
Gladstone.
 
The coal is blended
at the port to meet market requirements.
There are
 
agreements in
 
place for
 
approximately 8.6
 
million tonnes
 
per year
 
in exports
 
from RG
 
Tanna
 
and a
take or pay agreement with WICET for 1.5 million tonnes
 
per year.
 
 
ex961p55i0.jpg
 
Page 55 of 76
Figure 15-1: Curragh Preparation Plant Infrastructure
16
Market studies
 
16.1
 
Market Description
Coronado maintains a specialist marketing
 
team that focusses on direct
 
sales of Curragh products
 
to steel mills
in all
 
major international
 
markets.
 
Coronado coals
 
are widely
 
technically tested
 
and approved
 
for use
 
in coke
making
 
blends,
 
with
 
product
 
positioning
 
optimised
 
over
 
many
 
years
 
in
 
the
 
market.
 
Curragh
 
coals
 
are
 
widely
known
 
for
 
their
 
low
 
ash,
 
low
 
to
 
mid
 
volatile
 
matter,
 
low
 
Sulphur
 
and
 
low
 
Phosphorous
 
content.
 
Curragh
 
 
 
 
 
 
 
 
 
 
Page 56 of 76
Metallurgical
 
Coal
 
products
 
are
 
also
 
known
 
for
 
their
 
consistent
 
delivered
 
quality
 
which
 
supports
 
a
 
consistent
offtake across a diversified market base.
Table 16-1: Coal Quality for Washed Products
Seam
Primary
 
Yield (%)
Secondary
Yield (%)
CSN
Primary
Comments
Cancer
~30 @ 9% Ash
30
7 - 8
~0.5m thick.
 
Typically,
 
a Coking Coal blend
Aries
~50 @ 9% Ash
20 - 30
6 - 7
Aries Lower has
 
better Coking Coal properties
 
and
higher CSN
 
than Aries
 
Upper, also
 
has fluidity
 
50-
100 ddpm.
 
Aries Upper
 
typically produces
 
a high-
ash blend PCI.
Castor Lower
45 - 50 @ 8% Ash
30 - 35
7 - 8
A high quality coking
 
coal seam with
 
strong swelling
and
 
plastics
 
and
 
an
 
important
 
coking
 
coal
 
blend
component.
 
Good
 
middlings
 
blend
 
product
 
for
steam coal.
Pollux
~45 @ 7% Ash
30 - 35
6.5 - 7.5
A low
 
ash
 
Coking
 
coal
 
blend coal,
 
Pollux
 
has low
plastic
 
properties.
 
The
 
middlings
 
product
 
is
 
a
 
key
high Ash PCI blend component.
Pisces
 
Working
Section
UWS:
 
~80 @ 9% Ash,
mainly PCI
-
<3
Split
 
into
 
upper
 
working
 
section
 
(UWS)
 
and
 
lower
working section
 
(LWS).
 
The UWS
 
products a
 
low
ash PCI product for PCI blend. The
 
LWS middlings
typically produces a high-ash (12%) PCI.
LWS:
 
~45 @ 7.5%
Ash
30 - 35
6.5 - 7.5
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Page 57 of 76
16.2
 
Price Forecasts
Coronado’s
 
price
 
outlook
 
incorporates
 
data
 
from
 
independent
 
external
 
analysis
 
of
 
global
 
supply
 
and
 
demand
trends and is and
 
is supplemented with Coronado’s in-house knowledge
 
of applicable rail transportation
 
charges,
ocean freight charges and port charges.
 
Price assumptions
 
for Curragh
 
are given
 
in
. These are
 
based on the
 
CY22 annual mine
 
economic
analysis &
 
used for internal
 
optimization processes,
 
final blended products
 
for sale
 
may be different.
 
Financial
modelling to support reserve classification utilizes the prices
 
as discussed in the financial section.
Table 16-2: Coal Pricing
Product
USD/T
Metallurgical Coal
 
168
Export Thermal Coal
99
Total
143
Domestic thermal sales tonnes are sold to
 
Stanwell at based on the Stanwell Coal
 
Supply agreement described
in 16.3
16.3
 
Contract Requirements
Material contracts considered in the economic evaluation
 
of Curragh include:
Stanwell
We are
 
party to
 
contractual arrangements
 
with Stanwell,
 
including a
 
Coal Supply
 
Agreement, or
 
the CSA,
 
and
the Curragh Mine New Coal Supply Deed, dated August
 
14, 2018, or the Supply Deed.
Under the CSA, we deliver thermal coal from Curragh to Stanwell at an agreed price and quantity.
 
Stanwell may
vary the quantity of thermal coal purchased each year so the total quantity to be delivered to Stanwell each year
cannot
 
be
 
precisely
 
forecast.
 
The coal
 
that
 
we
 
supply
 
to Stanwell
 
constitutes
 
the
 
majority
 
of the
 
thermal
 
coal
production from Curragh. Our
 
cost of supplying coal
 
to Stanwell was greater
 
than the price paid
 
by Stanwell for
the year ended December 31, 2021.
 
Under the CSA, we also
 
share part of the revenue earned from
 
export Met coal sales (from particular
 
Tenements
(as defined below))
 
with Stanwell
 
through various
 
rebates. The
 
most material
 
rebate is
 
the export
 
price rebate,
which is linked to the realized export coal price for a defined
 
Met coal product, as follows:
●
 
For the
 
first 7.0 MMtpa
 
of export coal
 
sales: when
 
the 12-month trailing,
 
weighted-average realized export
coal price of Reference coal exceeds the Tier
 
1 Rebate Coal Floor Price, we pay a rebate of
 
25% of the
difference between the realized export coal price and
 
the Tier 1 Rebate Coal Floor
 
Price.
●
 
For export
 
coal sales
 
above 7.0
 
MMtpa: when
 
the 12-month
 
trailing, weighted-average
 
realized export
coal price of Reference coal exceeds the Tier
 
2 Rebate Coal Floor Price, we pay a rebate of
 
10% of the
difference between the realized export coal price
 
and the Tier 2 Rebate Coal Floor
 
Price.
The CSA also provides for:
●
 
a tonnage rebate to Stanwell per Mt on the first 7.0 MMtpa of export coal sales and on export coal sales
above 7.0 MMtpa; and
●
 
a rebate on run-of-mine, or ROM, coal mined in the Curragh “Pit U
 
East Area.”
The total Stanwell rebate for the
 
year ended December 31, 2021, was $55.4
million and has been included in the
consolidated statements of operations included -in the
 
Annual Report on Form 10-K.
The Supply
 
Deed grants
 
us the
 
right to
 
mine the
 
coal reserves
 
in the
 
Stanwell Reserved
 
Area, or
 
the SRA.
 
In
exchange, we agreed to certain amendments to the CSA and to
 
enter into a New Coal Supply Agreement, or the
 
 
Page 58 of 76
NCSA upon the
 
expiration of the
 
CSA (which is
 
expected to occur
 
in 2027).
 
On July 12,
 
2019, we entered
 
into
the
 
NCSA
 
with
 
Stanwell.
 
From
 
the
 
earlier
 
of
 
the
 
expiry
 
of
 
the
 
CSA,
 
the
 
date
 
of
 
termination
 
of
 
the
 
CSA,
 
and
January 1, 2029, we
 
will continue to supply
 
thermal coal to
 
Stanwell under the
 
NCSA. The term of
 
the NCSA is
expected to be 10 years,
 
and Coronado will supply
 
to Stanwell 2 million ‘Tonnes
 
Equivalent’ of thermal coal
 
per
annum (based
 
on a
 
nominal gross
 
calorific value
 
of 25.6GJ)
 
at a
 
fixed contract
 
price that
 
varies in
 
accordance
with agreed formulae, inclusive
 
of all statutory charges and
 
royalties in respect of
 
coal sold and delivered under
the NCSA. The export rebates which were payable under the CSA are not payable during the term of the NCSA.
 
The
 
supply
 
term,
 
the
 
contract
 
tonnage
 
and
 
the
 
contract
 
price
 
under
 
the
 
NCSA
 
are
 
subject
 
to
 
adjustment
 
in
accordance with a financial
 
model agreed between Stanwell
 
and us. In summary,
 
we have agreed that
 
the total
value of the
 
discount received
 
by Stanwell
 
on coal
 
supplied to
 
it under
 
the NCSA
 
should (by
 
the expiry
 
date of
the NCSA) be equal to
 
the net present value of A$210
 
million as at the date
 
of the Supply Deed.
 
The net present
value
 
of
 
the
 
deferred
 
consideration
 
was
 
$230.5
million
 
as
 
of
 
December
 
31,
 
2021.
 
On
 
January
 
18,
 
2021,
 
the
Option Coal Supply
 
Agreement, or the
 
OCSA, contemplated by
 
clause 5 of
 
the NCSA was
 
entered into, in
 
respect
of the supply of certain additional coal to Stanwell during
 
the term of the NCSA
Rail Services
Curragh is
 
linked to
 
the Blackwater
 
rail line
 
of the
 
Central Queensland
 
Coal Network,
 
or CQCN,
 
an integrated
coal
 
haulage
 
rail system
 
owned
 
and
 
operated
 
by
 
Aurizon
 
Network
 
Pty Ltd.,
 
or
 
Aurizon
 
Network.
 
Curragh
 
has
secured
 
annual
 
rail
 
haulage
 
capacity
 
of
 
up
 
to
 
12.0
MMtpa
 
(plus
 
surge
 
capacity)
 
under
 
long-term
 
rail
 
haulage
agreements with Aurizon
 
Operations Limited, or
 
Aurizon Operations, and
 
Pacific National Holdings
 
Pty Limited,
or Pacific National.
 
The RGTCT Coal
 
Transport Services
 
Agreement with Aurizon
 
Operations is for
 
8.5 MMtpa of
 
haulage capacity
to RGTCT. Curragh pays a minimum monthly charge (components of which are payable on a take-or-pay basis),
which is calculated with reference
 
to the below-rail access charges,
 
haulage/freight charges, a minimum
 
annual
tonnage
 
charge
 
and
 
other
 
charges.
 
The
 
RGTCT
 
Coal
 
Transport
 
Services
 
Agreement
 
terminates
 
on
 
June 30,
2030.
The Coal Transport
 
Services Agreement
 
with Pacific
 
National is
 
for 1.0
 
MMtpa of
 
haulage capacity
 
to RGTCT.
Curragh pays
 
a minimum
 
monthly charge
 
(components of
 
which are
 
payable on
 
a take-or-pay
 
basis), which
 
is
calculated with reference to the below-rail
 
access charges, haulage/freight charges, a
 
minimum annual tonnage
charge and other charges. The
 
Coal Transport Services
 
Agreement with Pacific National
 
terminates on July 31,
2029.
 
The
 
Wiggins
 
Island
 
Rail
 
Project,
 
or
 
WIRP,
 
Transport
 
Services
 
Agreement
 
with
 
Aurizon
 
Operations
 
is
 
for
 
2.0
MMtpa of capacity to WICET.
 
This contract is effectively
 
100% take-or-pay (for a
 
portion of the rail haulage
 
and
all capacity access charges). This agreement expires on June
 
30, 2030.
Port Services
Curragh exports
 
coal through
 
two terminals
 
at the
 
Port of
 
Gladstone, RGTCT
 
and WICET.
 
At RGTCT,
 
we and
Gladstone Port Corporation
 
Limited, or GPC, are
 
parties to a coal
 
handling agreement that
 
expires on June 30,
2030. The agreement
 
may be renewed
 
at our request
 
and, subject to
 
certain conditions, GPC is required
 
to agree
to
 
the
 
extension
 
if
 
there
 
is
 
capacity
 
at
 
RGTCT
 
to
 
allow
 
the
 
extension.
 
We
 
currently
 
have
 
the
 
right
 
to
 
export
between 7.7 MMtpa and 8.7 MMtpa at our nomination on a
 
take-or-pay basis.
We have
 
a minority
 
interest
 
in WICET
 
Holdings
 
Pty Ltd, whose
 
wholly-owned
 
subsidiary,
 
Wiggins Island
 
Coal
Export Terminal
 
Pty Ltd, or WICET Pty Ltd, owns WICET.
 
Other coal producers who export coal through WICET
also hold
 
shares
 
in
 
WICET
 
Holdings
 
Pty Ltd.
 
In addition,
 
we and
 
the
 
other
 
coal
 
producers
 
(or
 
shippers)
 
have
take-or-pay agreements with WICET Pty
 
Ltd and pay a terminal handling charge
 
to export coal through WICET,
which is
 
calculated
 
by reference
 
to WICET’s
 
annual operating
 
costs, as
 
well as
 
finance costs
 
associated with
WICET
 
Pty Ltd’s
 
external
 
debt
 
facilities.
 
Our
 
take-or-pay
 
agreement
 
with
 
WICET
 
Pty Ltd,
 
or
 
the
 
WICET
Take
 
-or-Pay
 
Agreement,
 
provides
 
Curragh
 
with
 
export
 
capacity
 
of
 
1.5
 
MMtpa.
 
The
 
WICET
 
Take
 
-or-Pay
Agreement is an “evergreen”
 
agreement, with rolling ten-year
 
terms. If we inform
 
WICET Pty Ltd that we
 
do not
wish to continue to roll the term
 
of the WICET Take
 
-or-Pay Agreement, the term
 
would be set at nine years
 
and
the terminal handling
 
charge payable
 
by us would
 
be increased so
 
that our
 
proportion of WICET
 
Pty Ltd’s debt
is amortized to nil by the end of that nine-year term.
 
 
 
Page 59 of 76
Under
 
the
 
WICET
 
Take
 
-or-Pay
 
Agreement,
 
we
 
are
 
obligated
 
to
 
pay
 
for
 
that
 
capacity
 
via
 
terminal
 
handling
charges, whether utilized or not. The terminal handling charge payable by us can be adjusted by WICET
 
Pty Ltd
if
 
our
 
share
 
of
 
WICET
 
Pty Ltd’s
 
operational
 
and
 
finance
 
costs
 
increases,
 
including
 
because
 
of
 
increased
operational costs or because another shipper defaults
 
and has its capacity reduced to nil. The terminal handling
charge is subject
 
to a financing
 
cap set out
 
in the terminal
 
handling charge methodology
 
and has already
 
been
reached and
 
is in force.
 
If another shipper
 
defaults under
 
its take-or-pay
 
agreement, each
 
remaining shipper
 
is
effectively proportionately liable to pay that defaulting shipper’s share of WICET Pty Ltd’s costs going forward, in
the form of increased terminal handling charges.
If we default under the
 
WICET Take
 
-or-Pay Agreement, we would
 
be obligated to pay a
 
termination payment to
WICET
 
Pty Ltd.
 
The
 
termination
 
payment
 
effectively
 
represents
 
our
 
proportion
 
of
 
WICET
 
Pty Ltd’s
 
total
 
debt
outstanding, based
 
on the
 
proportion of
 
our contracted
 
tonnage to
 
the total
 
contracted
 
tonnage of
 
shippers
 
at
WICET at
 
the time
 
the payment
 
is triggered.
 
Shippers can
 
also become
 
liable to
 
pay the
 
termination
 
payment
where there is a permanent cessation of operations at WICET.
 
Since WICET began shipping export tonnages in
April
 
2015,
 
four
 
WICET
 
Holdings
 
Pty Ltd
 
shareholders
 
have
 
entered
 
into
 
administration
 
and
 
Take
 
-or-Pay
Agreements subsequently terminated, resulting
 
in the aggregate
 
contracted tonnage of shippers
 
decreasing from
27 MMtpa to 15.5 MMtpa.
Under the WICET Take
 
-or-Pay Agreement, we are required
 
to provide security (which is
 
provided in the form of
a bank guarantee). The amount of
 
the security must cover our estimated liabilities as
 
a shipper under the WICET
Take
 
-or-Pay Agreement for the following twelve-month period. If
 
we are in default under
 
the WICET Take-or-Pay
Agreement and
 
are subject
 
to a
 
termination payment,
 
WICET Pty Ltd
 
can draw
 
on the
 
security and
 
apply it
 
to
amounts
 
owing
 
by us.
 
See
 
Item 1A. “Risk
 
Factors—Risks
 
related to
 
our
 
investment
 
in
 
WICET
 
may adversely
affect our
 
financial condition
 
and results
 
of operations”
 
and Item 7.
 
“Management’s
 
Discussion and
 
Analysis of
Financial Condition
 
and Results
 
of Operations—Liquidity
 
and Capital
 
Resources”
 
for additional
 
information
 
on
our take-or-pay obligations.
During 2019, Coronado
 
entered into an
 
Agreement with Washpool
 
Coal Pty Ltd
 
for assignment
 
of their WICET
capacity of 1.6 MMt per annum, on a take-or-pay basis
 
for a term to June 30, 2022,
 
at market rates.
Thiess Mining Services Contract
We currently use Thiess Pty Ltd, or Thiess, as
 
our primary mining contractor for our Australian Operations.
We
 
are
 
party
 
to
 
a
 
long-term
 
mining
 
contract
 
with
 
Thiess
 
to
 
provide
 
hydraulic
 
excavator
 
overburden
 
and
 
coal
mining,
 
pit
 
dewatering,
 
run
 
of
 
mine
 
rehandling
 
services
 
and
 
maintenance
 
of
 
Coronado
 
owned
 
heavy
 
mobile
equipment at the
 
Curragh North operation
 
until December 31,
 
2025, referred to
 
as Part A
 
Services; and to
 
provide
rope shovel
 
overburden removal
 
using Coronado’s
 
rope shovel
 
and Thiess
 
supplied ultra-class
 
truck services
until March 31, 2022,
 
referred to as Part
 
B Services. At any
 
time, the services can
 
be terminated for convenience,
subject
 
to
 
a
 
lump-sum
 
termination
 
payment.
 
We
 
are
 
currently
 
in
 
negotiations
 
with
 
Thiess
 
with
 
respect
 
to
 
the
arrangements beyond the expiry of the Part B Services.
17
Environmental studies,
 
permitting, and
 
plans, negotiations,
 
or
agreements with local individuals or groups
 
17.1
 
Results of Studies
Environmental and cultural heritage studies for approvals under Queensland
 
and Commonwealth legislation are
entailed with consideration of the following elements:
●
 
physical setting
●
 
impacts from operations
●
 
hydrology and water
●
 
terrestrial and aquatic fauna and flora
●
 
cultural heritage
 
 
Page 60 of 76
Besides mining, the
 
area affected by
 
the Curragh project
 
is used essentially
 
for low intensity cattle
 
grazing plus
some amount of dryland
 
cropping.
 
Most of the land
 
within the area are
 
currently disturbed as a
 
result of historical
grazing and mining activities.
 
Most of the original vegetation cover
 
has already been cleared for agricultural use,
except for a
 
few areas associated
 
with riparian vegetation
 
along the Mackenzie
 
River and its
 
tributaries as well
as the ephemeral Blackwater
 
Creek. The property has
 
therefore been the subject
 
of extensive activities prior
 
to
Curragh.
Curragh
 
has
 
complied
 
with
 
environmental
 
and
 
heritage
 
requirements
 
under
 
relevant
 
Queensland
 
and
Commonwealth legislation and
 
adhere to standard
 
practices for environmental
 
management set for
 
all coal mines
in
 
central
 
Queensland,
 
including
 
mitigation
 
of
 
impacts
 
on
 
cultural
 
heritage.
 
There
 
have
 
been
 
some
 
adverse
incidents, however,
 
the main ones being
 
spills of diesel fuel
 
(87,000 liters in 2016
 
and 25,000 liters in 2017),
 
as
well
 
occasions
 
of
 
minor
 
uncontrolled
 
or
 
non-compliant
 
water
 
releases.
 
Corrective
 
measures
 
have
 
remediated
these incidents where required.
 
Remediation of the main diesel spills is ongoing.
 
17.2
 
Requirements and Plans for Waste Disposal
General and Hazardous (Regulated)
 
solid waste at
 
Curragh is the
 
object of a
 
mandatory management plan under
the environmental license. General
 
waste is disposed at
 
an approved landfill site
 
at Curragh, while all regulated
waste is
 
transported
 
and treated
 
offsite
 
in an
 
environmentally
 
appropriate
 
manner
 
and in
 
compliance
 
with
 
the
Queensland
 
regulations.
 
The
 
mine
 
infrastructure
 
includes
 
two
 
Sewage
 
Treatment
 
Plants
 
(STP)
 
subject
 
to
conditions in
 
the environmental
 
license and
 
with the necessary
 
site procedures
 
in place.
 
These STPs
 
process
effluents from all office and camp/accommodation
 
facilities.
 
Industrial waste (tailings) from the CHPP is disposed of in
 
regulated structures, Tailings
 
Storage Facilities (TSF).
There are three
 
TSF at Curragh,
 
two in-pit and
 
one conventional above
 
ground TSF.
 
The above ground
 
TSF is
the original, complete and non-operational facility.
 
In-pit TSF is the process of backfilling abandoned pits, this is
currently the preferred method by the regulator.
 
Pit A TSF has limited remaining capacity and is non-operational
while Pit B TSF is an active facility with storage capacity of significant volume remaining and thus provides long-
term security for tailings
 
storage.
 
These locations are shown in
. All regulated structures are
 
subject
to ongoing inspection
 
by Curragh and
 
annual inspections
 
by an independent
 
Registered Professional
 
Engineer
of Queensland (RPEQ).
 
 
ex961p61i0.jpg
 
Page 61 of 76
Figure 17-1: Mine Waste Disposal Areas
17.3
 
Permit Requirements and Status
All applicable
 
environmental
 
licenses
 
and
 
permits
 
under
 
both
 
the
 
Queensland
 
and
 
Commonwealth
 
legislation
have been secured and
 
are in place. Work
 
is in progress to meet
 
the pre-mining monitoring and
 
studies to fulfill
requirements for ML’s
 
700006, 700007, 700008, and 700009 which are scheduled
 
for mining in later years.
17.4
 
Local Plans, Negotiations or Agreements
The Curragh Project includes three areas of Endangered Regional Ecosystem (EREs).
 
Reserves in these areas
have been downgraded to
 
account for long term protection
 
requirements.
 
The EREs or areas
 
of environmental
significance are associated with
 
the Mackenzie River
 
riparian vegetation and other
 
Brigalow communities located
within Curragh.
 
Under Commonwealth requirements, Curragh
 
has also provided
 
a biodiversity offset at
 
Mt. Flora,
 
 
Page 62 of 76
near
 
Nebo
 
in
 
Central
 
Queensland.
 
Further
 
biodiversity
 
offsets
 
are
 
required
 
under
 
obligations
 
related
 
to
 
the
Commonwealth and State approvals for ML700007 and
 
ML700008 and are in progress.
Curragh negotiated
 
a Cultural
 
Heritage Management Plan
 
(CHMP) in
 
2012.
 
This plan
 
was subsequently repealed
and
 
replaced
 
by
 
the
 
2017
 
CHMP
 
with
 
the
 
statutory
 
Aboriginal
 
parties
 
for
 
the
 
area
 
to
 
allow
 
access
 
for
 
mining
activities. A Services Agreement signed in December 2017 details the fee schedule for services
 
such as cultural
heritage survey and mitigation
 
prior to mining and
 
exploration activities by
 
Curragh.
 
These agreements comply
with
 
the
 
legislation
 
and
 
are
 
within
 
industry
 
standards.
 
All
 
cultural
 
heritage
 
sites
 
are
 
protected
 
and
 
subject
 
to
mitigation, however there are currently no identified sites
 
of significant cultural heritage value.
 
With
 
reference
 
to
 
native
 
title,
 
the
 
Queensland
 
Government
 
coordinates
 
the
 
application
 
process
 
for
 
Resource
authorities and
 
advise on land
 
that may be
 
subject to
 
native title.
 
To
 
date none
 
of the Curragh
 
Mining Leases,
other than ML80123, require native title processes for its grant.
 
However, most areas in central Queensland are
subject to
 
an undetermined
 
Native Title
 
Claim and
 
the determination
 
of native title
 
may affect
 
existing or
 
future
mining activities at Curragh.
17.5
 
Mine closure plans and associated costs
Queensland legislation now requires that all
 
large mines develop a Progressive Rehabilitation
 
and Closure Plan
(PRCP). The main purposes of the
 
PRCP are to plan for how and where
 
mining activities will be carried out in
 
a
way that maximises progressive
 
rehabilitation and to detail the
 
condition to which the land
 
must be rehabilitated
prior to relinquishment.
 
The Curragh Project PRCP is in the process of being developed for submission on 21 October 2022. The PRCP
will
 
include
 
post-mining
 
land
 
uses,
 
rehabilitation
 
methodologies,
 
community
 
consultation
 
requirements,
supporting
 
technical
 
studies
 
and
 
a
 
schedule
 
outlining
 
when
 
rehabilitation
 
will
 
occur.
 
The
 
Curragh
 
Project
 
is
approved to have residual voids in the post-mining landform.
 
Estimated
 
costs
 
for
 
mine
 
closure,
 
including
 
removal
 
of
 
infrastructure,
 
contaminated
 
land
 
investigations
 
and
remediation, reshaping and
 
rehabilitation works, monitoring
 
and maintenance and
 
a 10%
 
contingency, have been
undertaken using
 
a government
 
security bond
 
calculator.
 
This cost
 
is updated
 
at least
 
every five
 
years and
 
as
required by
 
legislation; an
 
appropriate security
 
bond has
 
been lodged with
 
the Queensland
 
State Government.
Curragh has
 
recognised a provision
 
for Asset Retirement
 
Obligation (ARO) of
 
$70.2million based on
 
disturbances
to date as disclosed in the 10K for the year ending 31
 
December 2021.
17.6
 
Qualified Person ’s Opinion
It is the Qualified Person’s opinion (Paul Wood) that environmental matters
 
are effectively controlled at Curragh,
without major incidents that pose extreme risks to the
 
project areas.
17.7
 
Commitment to local hiring
Curragh has
 
a long association
 
with the Blackwater
 
community. Since the mine opened
 
in 1983,
 
many employees
and their families have
 
lived in Blackwater,
 
and through this
 
connection Curragh has
 
been a major supporter
 
of
the Blackwater community.
Curragh’s
 
community
 
engagement
 
includes
 
providing
 
support
 
across
 
community
 
organisations,
 
health
 
care,
education, sport,
 
culture, indigenous communities
 
and local
 
tourism. Curragh is
 
proud to
 
support the
 
development
of a strong, healthy and vibrant Blackwater community.
Respecting
 
and
 
preserving
 
Indigenous
 
cultural
 
heritage
 
is
 
important
 
to
 
Curragh.
 
Curragh
 
holds
 
regular
 
co-
ordination meetings
 
with representatives
 
of the
 
local Indigenous
 
communities and
 
educates its
 
employees and
contractors on the importance and significance of Aboriginal
 
heritage and culture.
We have
 
long standing
 
relationships with
 
the communities
 
surrounding our
 
mines. Many
 
of our
 
employees live
near our
 
mines and
 
benefit from
 
our social
 
partnerships and
 
investments 57%
 
of our
 
site-based employees
 
at
Curragh have a home in nearby locations. This is relatively
 
unchanged from 2019.
 
 
ex961p63i3.jpg ex961p63i2.jpg ex961p63i1.jpg ex961p63i0.jpg
 
Page 63 of 76
18
Capital and Operating Costs
18.1
 
Capital Cost Estimate
The
 
production
 
sequence
 
selected
 
for
 
a
 
property
 
must
 
consider
 
the
 
proximity
 
of
 
each
 
reserve
 
area
 
to
 
coal
preparation
 
plants,
 
and
 
railroad
 
loading
 
points,
 
along
 
with
 
suitability
 
of
 
production
 
equipment
 
to
 
coal
 
seam
conditions.
 
Existing in-place infrastructure was evaluated, and any future needs were planned to a
 
level suitable
for economic reserves production including assessment of sustaining and development capex to allow entry into
new open pit mining areas.
A summary of the estimated capital for the Property is provided
 
in
below.
 
Figure 18-1: CAPEX US$ million
18.2
 
Operating Cost Estimate
Curragh’s costs estimates are based on application of existing contract rates for both upstream and downstream
costs aligned to
 
waste removed and
 
production rates. Unit
 
rates by activities
 
are assessed in
 
detail for site
 
budget
preparations and long term averages adjusted for inflation are
 
applied to future periods for the life of mine.
Operating costs include calculation of Queensland state royalties applied to
 
sales revenue and calculated within
mandated tiers. A summary of costs per tonne is provided
 
in
Figure 18-2
 
 
ex961p64i0.jpg
 
Page 64 of 76
19
Economic Analysis
19.1
 
Assumptions, Parameters and Methods
The Mine plan,
 
productivity expectations and cost
 
estimates generally reflect historical
 
performance by Coronado
and efforts
 
have been
 
made to
 
adjust plans
 
and costs
 
to reflect
 
future conditions
 
and comply
 
with contractual
obligations.
The financial model, prepared for this
 
TRS, was developed to test the
 
economic viability of the coal
 
reserve area.
 
The results of
 
this financial model
 
are not intended
 
to represent a
 
bankable feasibility study, required for financing
of any current or future mining operations,
 
but are intended to prove the economic
 
viability of the estimated coal
reserves.
 
On an unlevered basis, the
 
NPV of the project
 
cash flows after taxes was estimated
 
for the purpose of classifying
coal reserves.
 
The project
 
cash flows,
 
excluding debt
 
service, are
 
calculated by
 
subtracting direct
 
and indirect
operating expenses
 
and capital
 
expenditures from
 
revenue.
 
Revenue is
 
derived
 
from long
 
term forward
 
price
estimates observed at December 2021 and January 2022.
 
Both upstream and downstream costs are calculated
based on site knowledge of costs profiles and contractor obligations. Net cash flows incorporate applicable state
and federal taxes plus progressive reclamation obligations to the end of mine
 
closure. All cash flows are nominal
incorporating inflation of 1.8% and 2.2% in FY22 and
 
FY23 and 2.4% thereafter.
All figures are reported in USD
 
millions unless otherwise stated
 
and volume related data is
 
reported on a metric
tonne basis. The resulting NPV valuations use a 10% Weighted
 
Average Cost of Capital (WACC).
The projection
 
model
 
also
 
includes
 
consolidated
 
income
 
tax
 
calculations
 
at
 
the
 
Coronado
 
level,
 
incorporating
statutory depletion calculations, as
 
well as state income
 
taxes, and a federal
 
tax rate of 30%.
 
To
 
the extent the
mine generates net operating losses for
 
tax purposes, the losses are
 
carried over to offset future taxable income.
 
The terms “cash flows” and “project cash flows” used
 
in this report refer to after tax cash flows.
Annual
 
cash
 
flows
 
based
 
throughout
 
mine
 
life
 
to final
 
reclamation
 
and
 
make
 
good
 
on
 
assumptions
 
applied
 
is
provided in
Figure 19-1: Project Post Tax Net Cash Flow Summary (Millions)
19.2
 
Sensitivity
Base case
 
NPV of
 
$1.5 billion
 
is based
 
on life
 
of mine
 
average exchange
 
rate of
 
0.67, derived
 
from exchange
rate forward
 
curves during January
 
2022 and index
 
price estimates observed
 
during December 2021
 
and January
2022.
Outcomes of index price estimates applied to Curragh’s product mix and coal specification for both
 
metallurgical
and thermal coal are shown in
, showing average realised price per sales tonne.
 
 
 
 
 
 
 
 
 
 
 
ex961p65i0.jpg
 
Page 65 of 76
Figure 19-2
Sensitivity of
 
the NPV
 
results to
 
changes in
 
the key
 
drivers
 
is presented
 
in
.
 
The sensitivity
 
study
shows
 
the
 
NPV
 
at
 
the
 
10%
 
discount
 
rate
 
when
 
Base
 
Case
 
sales
 
prices
 
and
 
exchange
 
rates
 
increased
 
and
decreased in increments of 5%.
Table 19-1: Sensitivity of NPV (USD billions)
Price/FX
-5%FX
Base
+5% FX
+5% Price
$2.0
$1.7
$1.4
Base
$1.8
$1.5
$1.2
-5% Price
$1.5
$1.2
$0.9
As shown, NPV is quite sensitive to change in sales price
 
and exchange rate.
19.3
 
Results
 
The results of this financial model are not intended to
 
represent a bankable feasibility study,
 
as may be required
for financing
 
of any
 
current
 
or future
 
mining
 
operations
 
contemplated
 
but
 
are intended
 
to
 
prove the
 
economic
viability of the estimated coal reserves.
Cash flows are sufficient to support identified economic
 
reserves.
 
 
 
 
Page 66 of 76
20
Adjacent properties
 
20.1
 
Information Used
No Proprietary information associated with neighbouring properties
 
was used as part of this study.
 
 
 
 
Page 67 of 76
21
Other relevant data and information
 
This document
 
applies solely
 
to the
 
Curragh mining
 
operations and
 
no other
 
relevant data
 
or information
 
were
contemplated in its findings.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Page 68 of 76
Risk Level
Extreme Risk (1 to
 
8)
High Risk (9
 
to 15)
Moderate
 
(16 to
 
20)
Low Risk (21 to
 
25)
22
Interpretation and conclusions
 
22.1
 
Conclusion
Upon completion of these studies and analyses of the Curragh project, the authors have reached the conclusion
that
 
the
 
coal
 
resource
 
and
 
reserve
 
estimates
 
and
 
related
 
findings
 
presented
 
in
 
its
 
document
 
are
 
reasonably
accurate
 
and
 
representative
 
of
 
the
 
property
 
conditions.
 
The
 
data
 
has
 
been
 
interpreted
 
according
 
to
 
industry
standards, geostatistics
 
was used
 
to estimate
 
resource tonnes
 
and qualities
 
away from
 
drill holes
 
according to
the level of confidence as drill hole
 
spacing outlined in
. Reserves were derived from the
 
defined coal
resource
 
considering
 
relevant
 
mining,
 
processing,
 
infrastructure,
 
economic
 
(including
 
estimates
 
of
 
capital,
revenue, and cost), marketing, legal, environmental, socio
 
-economic and regulatory factors.
22.2
 
Risk Factors
A risk matrix has been constructed to present the risk levels for all the risk factors identified and quantified in the
risk assessment process.
 
The purpose
 
of the
 
characterization of
 
the project
 
risk components
 
is to
 
inform the
 
project stakeholders
 
of key
aspects of the
 
Curragh project
 
that can be
 
impacted by
 
events whose consequences
 
can affect
 
the success
 
of
the venture.
 
The significance of an impacted
 
aspect of the operation
 
is directly related to both the
 
probability of
occurrence
 
and
 
the
 
severity
 
of
 
the
 
consequences.
 
Risk
 
can
 
be
 
ranked
 
numerically,
 
derived
 
from
 
the
 
values
assigned to probability and consequence ranging from
 
very low risk to very high risk.
 
The
 
probability
 
and
 
consequence
 
parameters
 
are
 
subjective
 
categorical
 
estimates
 
made
 
by
 
practiced
 
mine
engineers and managers.
 
Consequence estimates are assigned
 
numerical integer values from
 
1 to 5 for which
the value
 
1 represents
 
the highest
 
consequence, and
 
the value
 
5 represents
 
the lowest.
 
Probability estimates
are assigned
 
alphabetical
 
values from
 
A to
 
E with
 
A representing
 
the highest
 
probability
 
of occurrence
 
and
 
E
representing
 
the
 
lowest
 
probability.
 
The
 
combination
 
of
 
Consequence
 
and
 
Probability
 
rankings
 
are
 
used
 
to
assign the Risk Level from 1 to 25 and are classified from
 
Extreme (very high) to Low risk.
 
Table 22-1: Risk Level Table
22.2.1
 
Governing Assumptions
The
 
listing
 
of
 
the
 
aspects
 
is
 
not
 
presumed
 
to
 
be
 
exhaustive.
 
Instead
 
that
 
listing
 
is
 
presented
 
based
 
on
 
the
experiences of the contributors to the TRS.
 
The
 
probability
 
and
 
consequence
 
ratings
 
are
 
subjectively
 
assigned,
 
and
 
it
 
is
 
assumed
 
that
 
this
 
subjectivity
reasonably reflects the condition of the active and projected
 
mine operations.
The Control
 
Measures
 
shown in
 
the matrices
 
presented in
 
this chapter
 
are not
 
exhaustive.
 
They represent
 
a
condensed collection of
 
activities that the
 
author of the
 
risk assessment section
 
has observed to
 
be effective
 
in
coal mining scenarios.
 
Mitigation Measures listed
 
for each risk
 
factor of the
 
operation are not
 
exhaustive.
 
The measures listed,
 
however,
have been observed by the author to be effective.
 
The monetary
 
values used
 
in ranking
 
the consequences
 
are generally
 
accepted
 
quantities for
 
the coal
 
mining
industry.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Page 69 of 76
Risk Rank
Risk Control
 
Measures
Control
 
Approvals
Extreme Risk (1 to
 
8)
Develop
 
Critical Risk Management Plan –include focus on provision
 
of multiple
 
hard defences,
 
where
practicable, in conjunction with
 
recovery/ contingency
 
systems,
 
appropriate competency.
 
Develop
 
risk
avoidance, reduction
 
and transfer mechanisms.
Site Senior
 
Executive
 
/
Operations Managers /
Project Managers
High Risk (9
 
to 15)
Develop
 
least one hard defence
 
and recovery/ contingency systems
 
where practicable,
 
in conjunction
with appropriate competency.
 
Develop
 
risk avoidance, reduction
 
and transfer mechanisms.
Project Managers /
Superintendents
Moderate
 
(16 to
 
20)
Review
 
effectiveness
 
of current project controls. Develop
 
and define
 
risk retention
 
mechanisms.
Superintendents
 
/
Supervisors
Low Risk (21 to
 
25)
Review
 
effectiveness
 
of current controls. Develop
 
and define
 
risk retention
 
mechanisms.
All personnel
 
involved
in project
Cat.
Damage / Loss
Cat.
Likelihood
1
>$50m damages
 
/ large
reorganisation
 
of project,
 
Major
Environmental
 
Damage
A
Common
 
or frequent
 
-
once
 
per
 
month.
2
$10m-$50m damages
 
/ project
contingency
 
plan
 
required
serious environmental damage.
B
Likely
 
- Is
 
known
 
to
happen
 
once
 
per
 
year.
3
$1k-$10m
 
damage
 
/ production
disruptions environmental
damage
C
Possible
 
- Could
 
occur
once
 
per
 
year.
4
$100-$1m damage
 
/ 1–2 shifts
production
 
loss,
 
minor
environmental damage
D
Unlikely
 
- Could
 
occur
once
 
per
 
10 years.
5
< $100K damage
 
/ minimal
production
 
loss,
 
No
environmental damage
E
May occur
 
under
exceptional cases once
per
 
lifetime
 
> 30 years.
Consequence
Probability
22.2.2
 
Limitations
The risk
 
assessment
 
proposed
 
in this
 
report
 
is subject
 
to the
 
limitations
 
of the
 
information currently
 
collected,
tested, and interpreted at the time of the writing of the report.
22.2.3
 
Methodology
The
 
numerical
 
quantities
 
(i.e.,
 
risk
 
levels)
 
attributable
 
to
 
defined
 
risks
 
are
 
derived
 
by
 
the
 
product
 
of
 
values
assigned to probability and consequence ranging from
 
very low risk to very high risk.
The Consequence (C) and Probability (P) parameters used in scoring are subjective categorical estimates made
by practiced mine
 
engineers and managers.
 
Both C and
 
P are assigned
 
numerical or alphabetical
 
values ranging
from 1 to 5 or
 
A to E.
 
Both values are assigned
 
in descending rank for
 
which the value 5
 
(or E) represents the
least
 
consequence
 
(lowest
 
probability),
 
and
 
the
 
value
 
1
 
(or
 
A)
 
represents
 
the
 
greatest
 
consequence
 
(highest
probability).
 
The combination of C and P
 
are used to assign a
 
Risk Level value and are thereafter classified from
Extreme to Low.
Table 22-2:
 
Risk Rankings and Control Measures
22.2.4
 
Development of the Risk Matrix
Risks have been identified for the technical, operational, and administrative subjects addressed in the TRS.
 
The
risk matrix and risk assessment process are
 
modelled according to the Australian and New
 
Zealand Standard on
Risk Management (AS/NZS 4360).
 
22.2.4.1
 
Consequence and Probability Level Table
Table 22-3:
 
Consequence and Probability Level Table ($AUD)
The
 
highest
 
rated
 
consequence
 
is
 
assigned
 
the
 
value
 
of
 
1
 
and
 
is
 
considered
 
critical.
 
Damages
 
may
 
exceed
$50m AUD
 
and may
 
require major
 
reorganisation of
 
the project.
 
Increasing values
 
are assigned
 
to each
 
lower
category of consequence,
 
culminating with the
 
value of 5
 
assigned to insignificant
 
consequences, the parameters
of which include no environmental damage, minimal loss
 
of production and cost of less than $100k AUD.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Page 70 of 76
1
E1
E2
E4
E7
H11
2
E3
E5
E8
H12
M16
3
E6
H9
H13
M17
M20
4
H10
H14
M18
L21
L23
5
H15
M19
L22
L24
L25
Probability
Consequence
D
E
A
B
C
The
 
highest
 
rated
 
probability
 
of
 
occurrence
 
is
 
assigned
 
the
 
value
 
of
 
‘A’
 
and
 
described
 
as
 
common,
 
with
 
a
likelihood of occurring once per month.
 
Increasing alphabetical values are assigned to
 
each lower probability of
occurrence, culminating with the value of ‘E’ assigned to incidents
 
considered to very unlikely to occur.
22.2.4.2
 
Composite Risk Matrix and Color-Code Convention
The risk
 
level, assigned
 
from the
 
probability
 
of occurrence
 
and consequence,
 
ranges in
 
value
 
from 1
 
(highest
possible risk)
 
to 25
 
(lowest risk
 
level).
 
The values
 
are color-coded
 
to facilitate
 
identification of
 
the highest
 
risk
aspects.
Table 22-4:
 
Risk Matrix
Extreme risks may be considered unacceptable and require corrective action.
 
Risk reduction measures must be
applied to reduce Extreme risks to a tolerable level.
22.2.5
 
Risk Factors
A high-level approach
 
is utilized to characterize
 
risk factors that
 
are generally similar
 
across a number
 
of active
and proposed mining
 
operations. Risk factors
 
that are unique
 
to a
 
specific operation or
 
are particularly noteworthy
are addressed individually.
22.2.5.1
 
Mining (Planning and Production)
Accurate mine planning is critical to the
 
success of any mining operation.
 
A realistic understanding of equipment
and labour
 
capabilities
 
and
 
needs allow
 
for
 
production
 
deadlines
 
to be
 
achieved
 
at forecast
 
cost.
 
Equipment
downtime is a
 
major factor in
 
lost production and can
 
be minimised with a
 
robust maintenance program that
 
helps
prevent unexpected breakdowns and unforeseen costs.
 
Skilled labour is crucial to the implantation
 
of the maintenance program and mine
 
production in general.
 
Skilled
labour
 
must
 
be
 
recruited
 
and
 
trained
 
to
 
meet
 
the
 
production
 
needs
 
of
 
the
 
mine.
 
Labour
 
contracts
 
must
 
be
negotiated early to avoid disruptions to the production schedule.
22.2.5.2
 
Geological
Coal
 
mining
 
is accompanied
 
by
 
risk
 
that,
 
despite
 
exploration
 
efforts,
 
mining
 
areas
 
will
 
be
 
encountered
 
where
geological
 
conditions
 
render
 
extraction
 
of
 
the
 
Resource
 
to
 
be
 
uneconomic,
 
or
 
that
 
coal
 
quality
 
characteristics
disqualify the product for sale into target markets.
 
 
Page 71 of 76
Unexpected changes in geologic conditions can be
 
minimized by maintaining an exploration and drilling program
well in advance
 
of mining.
 
This will allow
 
for production
 
forecasts to
 
be as accurate
 
as possible
 
while allowing
for adjustments to the mine plan to minimize the effects
 
of any adverse conditions that are found.
22.2.5.3
 
CPP (Prep Plant)
Raw coal
 
processing facilities
 
are key
 
to creating
 
a saleable
 
product for
 
the consumer.
 
Along with
 
operational
maintenance and downtime
 
issues, operational efficiency must
 
continually be evaluated
 
to ensure
 
that production
targets can be met in the face
 
of changing mining conditions.
 
Process and equipment changes may
 
be needed
to maintain yield in the future.
 
Capital expenditures and planning are generally able to overcome
 
these issues.
22.2.5.4
 
Environmental
Environmental permit requirements
 
are subject to
 
modification and
 
such changes could
 
have a material
 
impact
on
 
the
 
capability
 
of
 
the
 
operator
 
to
 
meet
 
modified
 
standards
 
or
 
to
 
receive
 
new
 
permits
 
and
 
modifications
 
to
existing permits. Permit protests may result in delays or
 
denials to permit applications.
Environmental standards
 
and permit
 
requirements
 
continue to
 
evolve, mining
 
operators and
 
regulatory
 
bodies
have been able to adapt successfully to evolving environmental
 
requirements.
22.2.5.5
 
Mining Capital
Aging equipment
 
and changing
 
conditions drive
 
the need
 
for capital
 
investment.
 
Underestimating the
 
need for
equipment or the cost can lead to unforeseen production
 
and budgetary changes.
 
Assessment of capital needs
must be ongoing to ensure that operational needs are
 
met and budgeted for appropriately.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Page 72 of 76
Ta
ble 22-5:
 
Risk Assessment
IDENTIFICATION
C
P
Score
RISK TREATMENT
Discipline
Risk Factors
 
Consequences
Risk treatment strategy
Mining
Production
forecast
cannot
 
be
maintained
Delays or higher costs
 
1
A
E1
●
 
Optimise the mine
 
plan to reduce
the
 
risk.
 
Ensure
 
enough
equipment
 
is
 
available
 
to
 
meet
budget targets.
●
 
Contractors must be on board to
ensure flexibility in the workforce
Dragline
efficiencies
not improved
Delays
 
and
 
higher
 
costs
 
for
removal
 
of
 
overburden
 
by
contractor
 
to
 
maintain
 
budget
production
2
A
E3
●
 
Ongoing
 
planning
 
required
 
to
optimise DL
 
strike and
 
reduce DL
standby
Current
 
coal
inventory
requires
improving
Increased
 
cost
 
of
 
overburden
removal
1
A
E1
●
 
Develop a mine plan
 
to optimise
pit
 
inventories
 
and
 
overburden
cost
Flooding
 
due
to
 
heavy
 
wet
season
 
or
creating
 
very
difficult
working
conditions
Loss
 
of
 
production;
 
Silting
 
of
natural water courses
Correct
 
disposal
 
of
 
mine
 
water
compromised
1
B
E2
●
 
Ensure
 
pumping
 
details
 
are
planned with contingency
●
 
Suitable
 
allowance
 
in
 
the
scheduling.
●
 
Ensure
 
mine
 
planning
 
suitably
addresses the consequences.
Maintenance
of equipment
Reduce production
 
and increase
in cost
2
B
E5
●
 
Develop
 
and
 
maintain
 
effective
maintenance
 
schedules
 
and
plans
Contract
Mining
Lack
 
of
 
skilled
 
workforce
 
to
maintain
 
enough
 
equipment
 
for
the mine plan
 
2
B
E5
●
 
Ensure contractors
 
are involved
in
 
the
 
mine
 
planning
 
schedule
and are aware of mine plan.
 
●
 
Continue
 
recruitment
 
and
incentivise
 
contractors
 
to
minimise labour turnover
Operating
costs
Increased operating costs
3
C
H13
●
 
Maintain
 
focus
 
on
 
cost
 
control
and contractor management
Multiple
contracts
 
with
different
renewal dates
Lack of continuity in production
1
C
E4
●
 
Procurement to manage
 
contract
processes
Geotechnical
risks
 
on
highwall/low
wall
Loss
 
of
 
production
 
potentially
safety hazard
3
B
H9
●
 
Maintain
 
current
 
geotechnical
studies
 
and
 
maintenance
 
of
present
 
procedures
 
to
 
ensure
current
 
good
 
practices
 
are
maintained
Fatality
 
or
other
significant
safety incident
Potential
 
mine
 
interruption
 
while
inspector conducts investigation
1
E
H11
●
 
Continue to adhere to the SHMS
and operational discipline
Geology/Geotechnical
Thrust
Faulting
Difficult drill and blast.
Difficult mining and wall stability.
Orientation of strips/joints.
Quality control.
Slower production rates
3
C
H13
●
 
Plan mine orientation
 
to consider
faulting.
●
 
Plan mine orientation
 
to consider
joints.
●
 
Continue
 
geotech
 
drilling
 
and
modelling.
●
 
In-fill drilling ahead of mining.
●
 
Incorporation
 
of
 
highwall
structural mapping into
 
the short-
term geological model.
Predicted
primary
product
 
yields
not achieved
Affects
 
forecast
 
coking
 
coal
product
 
tonnes
 
and
 
sales
revenue.
 
3
C
H13
●
 
In-fill
 
large
 
diameter
 
(200
 
mm)
coal quality core drilling
 
ahead of
mining.
Miscorrelated
seam/ply
intersections
in
 
the
structural
model.
Affects
 
the
 
scheduled
 
coal
 
and
waste, and the ROM strip ratio.
3
C
H13
●
 
Detailed
 
analysis
 
of
 
down
 
hole
geophysics
 
and
 
mapped
exposures.
●
 
In-fill drilling if necessary.
●
 
Regular
 
reviews
 
of
 
seam
correlation
 
by
 
experienced
geologists
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Page 73 of 76
IDENTIFICATION
C
P
Score
RISK TREATMENT
Discipline
Risk Factors
 
Consequences
Risk treatment strategy
CHPP
Structural
Integrity
Increased costs and potential
 
for
production loss
2
C
E8
●
 
Continue
 
to
 
maintain
 
the
structural
 
maintenance
programme
Yield loss
Failure
 
to
 
achieve
 
forecast
production targets
2
C
E8
●
 
Ongoing
 
monitoring
 
of
 
plant
operations to improve recoveries
Environmental
No completion
criteria
assessment
Success of
 
rehabilitation against
completion
 
criteria
 
not
undertaken,
 
which
 
means
progressive
 
rehabilitation
previously
 
undertaken
 
may
 
not
be to standard
4
C
M18
●
 
Conduct
 
an
 
assessment
 
of
rehabilitated
 
areas
 
to
 
ensure
completion criteria
 
is being
 
met;
rectify
 
and
 
re-cost
 
financial
assurance where necessary.
Mine
 
closure
costs
Additional
 
mine
 
closure
provisions required.
 
2
B
E5
●
 
Mine
 
closure
 
provisioning
inadequate.
 
●
 
Ongoing review
 
of mine
 
closure
costs and provisioning.
Environmental
harm
Company
 
comes
 
under
regulatory
 
scrutiny
 
for
environmental
 
damage,
 
fines,
reputation, clean-up costs.
 
3
C
H13
●
 
Annual
 
dams
 
inspections
 
by
registered
 
professionals,
 
env
management
 
systems,
procedures, training, reporting.
 
Operating
without
approvals
 
and
non-
compliance
Delays,
 
stop
 
work,
 
fines,
 
for
operating without an ML or on an
MLA,
 
without
 
an
 
approved
 
Plan
of
 
Operations
 
or
 
outside
 
of
licence conditioning and footprint
(such
 
as
 
land
 
clearing,
 
spoil
dumping,
 
cultural
 
heritage
impacts).
3
E
M20
●
 
Corporate
 
governance
structures,
 
clearing
 
permits,
internal
 
site
 
approvals,
 
job
descriptions
 
and
 
training
Environmental
complaints
Stop
 
work,
 
fines,
 
public
perception
 
(from
 
dust,
 
blasting
impacts)
5
B
M19
●
 
Complaints
 
register
 
monitoring
and
 
mitigation
 
systems,
procedures and training
Mining Capital
Low estimate
Unrealistic project assessment
 
1
C
E4
●
 
Ongoing
 
assessment
 
of
 
current
assets
 
and
 
budget
 
capital
requirements
 
 
 
 
Page 74 of 76
23
Recommendations
 
Coronado
 
is
 
continuing
 
to
 
work
 
both
 
internally
 
and
 
with
 
outside
 
assistance
 
to
 
continue
 
to
 
further
 
define
 
their
Resource
 
Base
 
and
 
to
 
Optimize
 
the
 
LOM
 
Plan.
 
Exploration
 
drilling
 
has
 
been
 
budgeted
 
to
 
be
 
carried
 
into
 
the
future to upgrade resource categories
 
at the cost of
 
millions of dollars. Each
 
year the results of
 
this work are used
to create
 
a geological
 
model (at
 
the cost
 
of tens
 
of thousands
 
of dollars).
 
This is
 
then used
 
as the
 
basis for
 
pit
optimisation and cutting new solids used in the life of
 
mine planning process.
A planning calendar
 
is kept to
 
track the tasks
 
each year and
 
forms the basis
 
of pulling the
 
annual budget together.
 
 
 
 
 
Page 75 of 76
24
References
 
Various
 
reports including the
 
2019 SEC report,
 
Coronado prospectus,
 
2021 Later development
 
plan, SEC TRS
guidelines and sample TRS reports. These are
1.
 
Curragh SEC
 
Report (2019-04-02)
 
Metric with
 
maps footnote
 
added to
 
Table
 
1.3 and
 
11.1
 
bc 342019
jsd_sk
2.
 
Coronado-Global-Resources-Inc.-Prospectus-Compressed (1)
3.
 
2021 Later Development Plan Curragh_draft_Rev6 adjustments
 
for Ardent's comments
4.
 
SEC TRS guidelines from page 388 33-10570
5.
 
Final Buchanan SEC Metric Tonnes
 
(M62181 2021-02-12) 4Client
25
Reliance on information provided by the registrant
 
For
 
the
 
purpose
 
of
 
this
 
report
 
the
 
Geological
 
data
 
provided
 
by
 
Coronado
 
was
 
subjected
 
to
 
verification
 
of
 
its
integrity and completeness. Barry Lay
 
the resource Qualified Person
 
provided some but not
 
all of the information
in Chapters 1, 6, 7 and 11, Paul Wood the reserve Qualified Person
 
provided some but not all of the information
in Chapters 1 and 12.
 
Paul Wood also sourced
 
the bulk of the
 
information in Chapters 2,
 
3, 4, 5, 7, 8, 9,
 
10, 13,
14, 15, 17, 20, 21, 22, 23, 24 and 25 from the above mentioned
 
references and external consultants.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Page 76 of 76
26
Glossary of Abbreviations and Definitions
 
Abbreviation
Definition
AUD
Australian Dollar
AUD:USD
Australian Dollar to US Dollar currency conversion rate
EBITDA
Earnings Before Interest Tax
 
Depreciation & Amortization
Kt
Kilo tonnes; Units in thousands
LOM
Life Of Mine
Mbcm
Million bank cubic meters
MDL
Mineral Development Licence
Metallurgical Coal
Coal used in the steel making process
ML
Mining Lease
MMt
Million Metric Tonne
Mt
Million Tonnes
NPV
Net present value
P&L
Profit and loss
PCI
Pulverised Coal Injection
Prdt
Product Tonne
ROM
Run Of Mine, Coal mined
t
Metric tonnes
USD
US Dollar
WACC
Weighted average cost of capital as a percentage