BLUFF MINE (ML80194, EPC  1175, EPC 1999)

The Bluff Mine (Bluff) is an open cut mine located in the southern Bowen Basin, near the township of Bluff and 20km east of Blackwater. The mine is adjacent to the Blackwater rail line which connects it to the Port of Gladstone.

The Bluff acquisition was completed in December 2021 and first coal was mined and shipped in June 2022. HSE Mining was awarded the mining contract and mobilised a 600 tonne and 250 tonne mining fleet to mine the deposit.

The Ultra Low Volatile PCI I coal produced at Bluff is well regarded for its low ash, high energy and high coke replacement ratio.  

Bowen operates under an agreement with the QCoal Group to wash and rail coal from Bluff through their nearby Cook Coal Handling and Processing Plant for export through the Port of Gladstone.  

Continued operational constraints at Bluff resulting in lower ROM production than guidance, combined with higher input costs and a lower PCI price, led Bowen to announce on 28 September 2023 that the mine would be placed in to care and maintenance by the end of 2023, waiting on a more favourable price environment to extract the remaining coal reserves from the deposit.

Bluff has total coal resources of 13Mt as of 30 June 2023.    

Figure 1 Bluff Mine location

Resource Statement

The mine contains resources of 13.5Mt, of which 11.2Mt is classified in the Indicated category. This resource was estimated in accordance with the JORC code (2012) by the Competent Person noted below. The production target areas identified correspond to the part of the Mine Mineral Resource estimate which are classified ~95% in the Indicated Resource category and ~5% in the Inferred category. Volumes were adjusted for mining losses and dilution (Roof 0.02m and Floor 0.02m) and a 5% global loss as part of the mining process to derive a ROM tonnage. (Ref ASX Announcement 11 November 2021)

Table 1. Summary of the Resource Estimate for Bluff Mine

DEPTH CATEGORY (MT)
INDICATED INFERRED* TOTAL
< 100m 2.6 0.1 2.7
100m to 150m 3.0 0.3 3.3
150m to 200m 3.2 0.7 3.9
200m to 250m 2.4 1.2 3.6
TOTAL RESOURCES 11.2 2.3 13.5

Note – Some rounding to the nearest significant figure has occurred and this may reflect in minor differences in the overall reported resource.

* There is a low level of geological confidence associated with Inferred mineral resources and there is no certainty that further exploration work will result in the determination of Indicated mineral resources or that the production target itself will be realised.


Infrastructure Access

Bowen has an agreement with the QCoal Group to wash coal from Bluff through their nearby Cook coal handling and processing plant, and to access their train loading facility for export through the Port of Gladstone. Negotiations for rail and port access are well advanced.


Coal Quality

The coal produced at Bluff is a ULVPCI product, which typically attracts a premium in the market for its low ash, high energy and high coke replacement ratio. Coal qualities have been based on actual coal sold before the mine was placed in care and maintenance. A reconciliation of coal quality for the remaining life of mine compares favourably with coal shipped historically, and therefore a high confidence is placed on the reported coal quality.

Table 2. Key coal quality parameters (Approximate)

Parameter Value
Total Moisture (%arb) 9.5 -10.5
Ash% (adb) 8 - 9%
Volatile Matter (%adb) 13-14
Fixed Carbon (%adb) 75-77
Calorific Value (Kcal/kg Gad) 7,750-7850
Total Sulphur (%adb) <0.65
Phosphorus (%adb) <0.08
HGI 85-95