Degulla Coal Project

Vale Coal Exploration Pty Ltd (Vale) is the current owner of the Degulla coal deposit, situated in the eastern Galilee Basin between the Carmichael and Alpha North Projects (Figure 12). Publicly available information about coal resources at Degulla is scarce (for example, the total resource as estimated by a Competent Person as defined by the JORC Code is currently unavailable); although a large tonnage deposit is known to occur. For example, Price (2011) quoted Vale sources as suggesting that (if developed) production at Degulla would likely range from 20 to 40 Mt/year, and would seek to export coal via Abbott Point. This indicates that the total resource tonnage at Degulla is probably comparable in size to at least the South Galilee Coal Project, and may exceed one billion tonnes of raw coal. However, media reports in mid-2013 indicated that Vale were attempting to sell the Degulla Coal Project, following several cost-cutting measures and asset write downs across their suite of Australian coal operations (The Australian, 2013). The status of this sale attempt, and any further exploration or appraisal work at Degulla in more recent times, is currently unknown.

Last updated:
5 January 2018
Thumbnail of the Galilee subregion

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