PERTH (miningweekly.com) – The Australian Foreign Investment Review Board (FIRB) has approved Japan Oil, Gas and Metals National Corporation (Jogmec’s) A$3-million investment into ASX-listed Allegiance Coal’s Kilmain coal project, in Queensland.
Under the terms of the joint venture (JV) agreement, Jogmec would spend A$3-million on exploration over a three-year period, in exchange for a 40% interest in the Kilmain project.
The project, which covers some 56 km2, had the potential for an opencut/underground deposit and has an exploration target of between 100-million and 200-million tonnes of coal.
“The approval by FIRB gives the green light for the start by Allegiance Coal of exploration activities at the Kilmain project. First ground work will start within the next ten days,” said Allegiance MD Colin Randall.
“With Jogmec’s participation, we are now able to proceed with the development of one of our major coal projects in Queensland,” he added.