Yes, worthwhile commenting on 18:1 strip ratio. My discussions with old mate Peter Lynch regarding this issue on a non-shareholder status. That is a frank discussion between mates.
18:1 is not something you would aspire to as you have to remove 18 Bank Cubic Metres for every tonne of coal SOLD.
The high strip ratio coal is later in the 10 year mining for the opencut mine. By this time it was considered that a few options would develop.
Still viable to mine out the 10 years BBM Coking provided coal price held up or increased.
You may recall recent announcement about firming up the resource (in BBM) on the other side of the river. I was aware of this lower strip ratio coal.
By end of 10 years it was/is? Anticipated that the 200 million tonne BBM underground mine could be operational. Scoping Study was positive.
TBAR will be well advanced within the 10 year period.
So normal mine planning adjustments will be made to decide where the production comes from in 10 years time. The deeper BBM coking may be left in place or gradually mined out to enhance blends.
All depends on coking coal price. My view is that the coking coal price will be through the roof. You only have to see the strip ratios in Queensland that increase every year to understand my view.
CKA Price at posting:
4.0¢ Sentiment: Buy Disclosure: Held
