Construction begins on Foxleigh Joint Venture

• $100m/year in exports
• Up to 100 direct jobs for Queenslanders
• Training and employment opportunities for Indigenous Australians
• A new approach to coal mine development

Construction of the newest addition to the Bowen Basin coal mining fraternity, the $100M/year Foxleigh Project, is set to go ahead this month, following Government granting of a 35 year mine lease in November.

Actual coal production at the open cut mine is expected to commence in January next year, less than two years after the first exploration holes were drilled.

Initially Foxleigh will produce some two million tonnes of coal per annum, however considerable potential exists to raise this figure to three million tonnes or greater, with consequent export revenue increases.

Owned by the Foxleigh Joint Venture and to be mined by Thiess in partnership with the Aboriginal and Torres Strait Islander Commercial Development Corporation (CDC) under a Life of Mine contract, the Project leads the latest generation of coal mining developments that reduce capital investment costs through utilising existing infrastructure.

Managing Director of majority owners CAML Resources, Mr John Thorsen, said co-operative arrangements have been reached with neighbouring existing infrastructure owner, Capricorn Coal Management Pty Ltd (Capcoal), to compliment the utilisation of its facilities.

“Capcoal’s co-operation in the development of this arrangement has been greatly appreciated. We now have a win-win situation for both Capcoal and Foxleigh, whereby the improved capital utilisation enhances the existing project, while providing the Joint Venture with a more appropriate investment framework for today’s difficult economic climate,” he said.

Coal mined from the Foxleigh deposit will be washed and treated at Capcoal’s nearby German Creek coal preparation and handling plant. The product coal will then be transported by train to the Dalrymple Bay Terminal for export.

Due to the high quality of the Foxleigh product, it will be targeting a new growth sector of the export coal market. One of only a handful of mines of its kind in Australia, Foxleigh’s very low ash coal is ideally suited to the pulverised coal injection (PCI) process now commonly used in steel-making.

Markets will include Japan, Europe and South America, with responsibility for the important Japanese market resting with long-term Bowen Basin investor and Foxleigh Joint Venture partner, Itochu Coal Corporation Japan.

Thiess and CDC join forces to maximise training and employment opportunities for Indigenous Australians

A key initiative of the actual Foxleigh operation will be the relationship between Joint Venture partner CDC and mining contractor Thiess.

Thiess and CDC have joined forces to maximise training and employment opportunities for local Aborigines and will put to good use the $1.6M allocated by the Foxleigh Joint Venture for training programs at the mine.

CDC Chairman Mr Joseph Elu said he was impressed with Thiess’ and the Joint Venture partners’ commitment to securing tangible outcomes for Aboriginal people in the local area.

“Not only will this investment provide a commercial return for the CDC, it will also provide a unique opportunity to maximise Aboriginal employment and training,” he said.

Executive General Manager Qld/NT/Pacific, Mr Roger Trundle, said Thiess was looking forward to a long and productive relationship with CDC and the Joint Venture.

“Thiess places great importance on working with and supporting the communities in which it operates. We are therefore committed to working with CDC and the local community to ensure long-term indigenous training and employment opportunities are realised at the Foxleigh Project,” he said.

In total, the Project will support some 100 direct employees who will reside in the local area and already 30 Middlemount houses have been allocated to the project.

Environmentally, the mine will cause minimal impact due to limited land disturbance and Thiess’ commitment to the Project’s comprehensive Environmental Management Strategy.

The Foxleigh Joint Venture comprises Queensland company CAML Resources (60 percent); Itochu Coal Resources Australia investment vehicle ICRA Foxleigh Pty Ltd (20.6 percent); CDC investment vehicle Bowen Basin Investments (16.4 percent); and CAML investment vehicle Lake Lindsay Investments (3 percent).

Ends.

For further information contact:
Mr John Thorsen
Managing Director
CAML Resources
Ph: (07) 3220 0800

Ms Fiona Murcott
Communications Manager
Thiess
Ph: (07) 3368 0537
M: 0419 758 196