Coal

Metallica holds 56% of MetroCoal Limited, an emerging coal-based, export coal and cleaner coal energy company that aims to develop a substantial limited-emissions energy business centred on its 4,000 square kilometres of wholly-owned project tenements in the Surat Basin of southeast Queensland. MetroCoal’s simple strategy is to exploit previously stranded abundant coal deposits in a favourable setting.

 MetroCoal currently holds seven granted coal tenements (EPCs 1152, 1159, 1164-1167 and 1251), with two additional recently submitted applications in progress which cover vast coal bearing strata in South East Queensland. The Company recently completed a second drilling program on MDLA 406 (the Juandah prospect), which contains Inferred and Indicated coal resources totalling 172 million tonnes.

 MetroCoal’s core strategy over the next two years is to establish exploitable coal deposits of 2-3.5 billion tonnes within its current tenements for purposes of export thermal coal from conventional mining operations, and provide a world-class base for Underground Coal Gasification (UCG) operations to produce ‘syngas’ that can be converted to generate cleaner electric power and once established, use a portion of the syngas production for purpose of clean fuels (such as clean diesel) and fertilisers.

For further information on MetroCoal, please refer to their website: www.metrocoal.com.au.