Washpool Hard Coking Coal Project Milestone Achieved at Wiggins Island
Friday, October 1st, 2010
– Wiggins Island Coal Export Terminal (“WICET”) at Gladstone announced today capacity commitments totalling 27Mtpa from 8 coal producers.
– The Washpool Hard Coking Coal Project has made a capacity commitment of 1.6Mtpa in Stage 1.
– The capacity commitments form the basis for WICET to secure funding for the initial Stage 1 Terminal development with financial close expected in the first half of 2011 and shipments from 2014.
Aquila Resources Limited (ASX:AQA) is pleased to announce that Washpool Coal Pty Ltd, a wholly owned subsidiary of Aquila Resources Limited, has signed a Capacity Commitment Deed (“CCD”) for the mine’s 1.6Mtpa capacity with WICET.
With the CCDs in place from the 8 coal producers, Queensland Treasury has extended WICET’s exclusive mandate to develop the terminal to at least 27 April 2011. This has cleared the path for WICET to appoint Worley Parsons to provide procurement and construction services for Stage 1 of the terminal, and ANZ as financial adviser to assist in securing the funding for Stage 1.
Aquila is continuing to negotiate for capacity for both above rail and below rail services with the expectation of this capacity being available in line with the completion of Stage 1 of the WICET Terminal.
Securing port and rail capacity is essential for the successful development of Australian coal projects and the wholly-owned Washpool Hard Coking Coal Project, the Definitive Feasibility Study for which is due for completion in Q3 2011, is on-track to become Aquila’s second producing coal mine.