RANBURY UNDERTAKES PEER REVIEW TO INFORM IDEMITSU’S COMMITMENT TO PROJECT IMPLEMENTATION

The mine expansion involved expanding the existing Boggabri Coal mining operations to increase its coal production from 1.5Mtpa to 6.5Mtpa.  The proposed scope of the project (at the time of the peer review), included:

• Installation of a new coal handling and processing facilities, including extensions to the Run-of-Mine (ROM) pad and stockpiles and new bulk material handling infrastructure
• Construction of a new rail spur line and balloon loop with associated train load-out facilities
• Upgrades to mine site 132kV and 11kV power supplies, including provision of a new substation
• Provision of temporary camp accommodation for construction staff
• Upgrades to the mine infrastructure area including office, amenities and workshop buildings, and supporting infrastructure including roads, drainage and services

This scope was to be considered in the context of sharing of coal handling and train load-out facilities with the adjacent Tarrawonga Mine.  It was also proposed that the (planned) Maules Creek Coal Project would share part of the rail spur line.

Ranbury was engaged by Idemitsu to undertake a comprehensive peer review of the project’s status, with a focus on the capital cost, program, and risk provisions for the delivery of the proposed infrastructure to support the mine expansion.  The review also included consideration of property, approvals, developed designs, contract conditions, and stakeholder agreements including cost recovery arrangements.

The peer review was provided to support Idemitsu’s Board decision around a commitment to project implementation, and in particular, award of major design and construct contracts.

Our project work was completed on time to meet Idemitsu’s requirements and to support their due diligence process for the award of major contracts.