Gina Rinehart’s strategy of investing in junior exploration companies in Queensland’s coal sector is set to pay off with joint venture partner International Coal discovering high quality reserves near Bundaberg.
International Coal revealed results at a drill hole in the Maryborough Basin showed a coal swell index of 9, indicating the presence of high-quality coking coal, The Australian reported.
Rinehart’s company, Queensland Coal Investments (QCI), signed a joint venture with International Coal last year which will see QCI spend $3 million on exploring coal tenements for a potential 51 per cent share in the Maryborough Basin project.
International Coal told the Australian Securities Exchange today that recent drilling confirmed coal seam at depths ranging from 30 metres to 428m. Coal was found at intersections varying in thickness from 0.66m to 2.63m.
In 2011, Gina Rinehart sold a majority share in Queensland thermal coal assets to Indian conglomerate GVK for $1.2 billion, but has since invested in smaller projects in the region.
QCI have signed similar joint exploration ventures with Cuesta Coal and Tiaro Coal.