The Coal Trader

Coal Mining Wilton Coal Mine Futura Resources

Futura Resources Starts Production at New Queensland Coal Mine

Futura Resources, a Queensland-based company, has officially begun operations at its Wilton open-cut mine, marking it as the state’s newest coal producer.

Project Details:

  • Location: Bowen Basin, Queensland, Australia
  • Mines:
    • Wilton (current)
    • Fairhill (upcoming)
  • Production capacity:
    • 1.0 million tonnes per year (mt/y) per mine at full capacity (expected in 2025)
    • Combined: 2.0 mt/y
  • Product: Metallurgical coal (used in steelmaking)
  • Shipping port: Gladstone port

Investment and Funding:

  • Financing: Baker Steel Resources Trust, an investment fund, is providing financial backing.
  • Total funding: $50 million required for both Wilton and Fairhill
  • Baker Steel contribution:
    • $26.2 million in a three-year convertible note with a 21% annual coupon
    • 28.2% equity stake in Futura Resources (second largest)
  • Potential future funding:
    • Convertible note issue for up to $30 million from other investors (under finalization)
    • Debt financing once Wilton is operational

Market Outlook:

  • Strong demand: Tight supply and high demand for metallurgical coal, particularly in developing countries like India, Vietnam, and Indonesia.
  • Expected profitability: Futura forecasts an EBITDA of $92 million once both mines are operational.

Sustainability Claims:

  • Low environmental footprint: Futura emphasizes utilizing existing infrastructure, including a coal processing plant partially powered by renewable energy.

Additional Notes:

  • $100 million has been invested in exploration, testing, and planning for the project.
  • Mining licenses were granted in November 2022.
  • Futura Resources and Sojitz (coal processing plant owner) have not yet responded to requests for comment.

Overall, the commencement of operations at the Wilton mine represents a significant development for Futura Resources and the Queensland coal industry. The project is expected to contribute to the global supply of metallurgical coal while facing potential scrutiny regarding its environmental impact.

Source: TheCoalTrader, AI generated