An underground coal operation will be accelerated.
New Hope Corporation (NHC) recently purchased up to $105 million of institutional placement equity in Malabar Resources.
The amount comprises of a $76M firm placement allocation that increases NHC’s stake in Malabar from 15 to 19.9 per cent. A further $29M was invested in a conditional placement allocation subject to Malabar shareholder approval which could increase the company’s shareholding to about 23 per cent.
Funds will help fast-track the Maxwell Underground Coal Project in Jerrys Plains, 117km northwest of Newcastle.
“Malabar will use the proceeds from the Malabar equity raise to accelerate Malabar’s development of the Maxwell Mine Project as a 300 metre-long wall versus an originally planned initial 145 metre-long wall,” NHC said in a public statement.
Pybar Mining Services was previously engaged as preferred contractor for the project. It has been responsible for supplying and installing 1.3km-long twin parallel drifts for accessing coal seams. The task required up to 100 workers for metaliferous-style drilling and blasting activities.
The New South Wales Independent Planning Commission earlier granted planning approval for the project, which involves transforming Anglo American’s former Drayton Open Cut Coal Mine into an underground operation. QMEB understands the new project uses a combination of underground bord, pillar mining and long wall mining methods.