Lightjack Hill Coal Project
Canning Basin Coal has three coal exploration licences over 724 square kilometres of the Canning Basin. TPL had its origins as a web-based publisher while Canning Basin Coal has no operating coal or other mining projects. Canning Basin Coal suggests that coal in the area could have "Underground Coal Gasification potential".
In September 2012 TPL reported that it a report by CSA Global cast doubt about the viability of any possible project in the company's tenements. The company stated that the best comparator with the Lightjack Hill Coal Project was Rey Resources. TPL noted that Rey Resources estimated production costs of $70 per tonne.
TPL also stated that:
- "in their release Rey Resources assumed the sale price of the coal would be US$100/t when the Newcastle Reference Price was US$120/t (2011). However the current selling price of 5500 Newcastle Coal is approximately US$82-85. Applying the same discount of US$20/t, gives a sale price of US$62-US$65/t making the potential selling price of a TPL processed coal product now below the assumed operating cost of TPL's Lightjack Hill Project. (Assuming the above operating costs would also apply to TPL's project".
- "In the current coal market, given the superior quality and availability of Indonesia low energy coals, CSA have advised TPL that it is unlikely that there would be a demand in the short to medium term term for any commercially mineable coal located at the Lightjack Hill Project".
The company stated that as a result of its assessment of the thermal coal market, "the Board of Directors of TPL have decided to reduce the company's immediate expenditures on its Canning Basin tenements. Further, given the costs associated with negotiating access to the tenements with Traditional Landowners, and the attendant difficulties meeting minimum expenditure commitments, the Board has decided to rationalize its landholding. The Board will continue to review the Company's tenement holding including the ground associated with the Lightjack Hill project pending improvements in coal market conditions."
Articles and resources
- TPL Corporation, "TPL Corporation", TPL Corporation website, accessed December 2010.
- Canning Basin Coal, "Canning Basin Coal", Canning Basin Coal website, accessed December 2010.
- Robin Bromby, "Coal tempo gathers pace in WA", The Australian, July 12, 2010.
- TPL Corporation, "Results of Drill Programme", Media Release, September 11, 2012.