China’s Wintime Energy Group is practicing some vertical integration into the northern Bowen Basin with the help of Terracom.
The two companies are joining forces to develop and operate the Moorlands thermal coal project, 25km north-west of Clermont.
TerraCom said the project hosted a 378Mt resource, with initial studies indicating support for a robust open-cut operation to provide long-term supply for Wintime’s coal-fired power generation in China.
They aim to produce first coal from Wintime’s Moorlands tenements in FY2026, subject to securing mining leases and other approvals.
Moorlands is initially proposed as a 1.9Mtpa run-of-mine (ROM) operation with a 25-year mine life and expansion potential to 4Mtpa ROM.
It is located about 14km north-west of the Terracom-owned Blair Athol thermal coal mine, allowing TerraCom to draw on that infrastructure.
The company plans to establish a dual processing and logistics hub for Blair Athol and Moorlands coal while maintaining steady state ROM production from the Blair Athol resource.
TerraCom managing director Danny McCarthy said the skills of both organisations and the proximity of Moorlands to Blair Athol made TerraCom and Wintime natural partners.
It would unlock synergies, extend the horizon of mining operations at Blair Athol and realise the regional benefits that flowed from it, mr McCarthy said.
“I was fortunate enough to recently see firsthand the scale and sophistication of the Wintime operations in China and am humbled by the trust Wintime has placed in TerraCom to bring the Moorlands project to life as well as the global development opportunities to expand the reach of TerraCom and Wintime,” he said.
Wintime is listed on the Shanghai Stock Exchange, where it has a market capitalisation of about $5.94 billion.
The company holds a portfolio of coal mine and power generation assets, including wharf and ship loading/unloading facilities across mainland China.
TerraCom and Wintime will work exclusively to agree on definitive project documents for the Moorlands project by December 31, 2024.
TerraCom will be engaged to provide development, management, mining services, logistics and processing services through to the mine gate at Moorlands under the companies’ cooperation agreement.
TerraCom and Wintime also plan to work collaboratively to investigate joint global development and operation opportunities in complementary markets and industries, including in mineral resources, renewable resources and related areas.