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Explorer Bowen Coking Coal has hit a potential fast lane to production with a deal to buy Peabody Energy’s Broadmeadow East project, north-east of Moranbah.

The deal will give Bowen Coking Coal access rights to the New Lenton joint venture coal handling and preparation plant and a train load-out facility.

Broadmeadow East boasts an estimated resource of 33 million tonnes of metallurgical coal within a granted mining lease and is within 50km of two key Bowen Coking Coal projects.

“We are delighted to have reached agreement with Peabody on this deposit,” Bowen Coking Coal managing director Gerhard Redelinghuys said.

“The deposit is unmined, sits within a granted Mining Lease and we have secured access to necessary infrastructure in the form of a haul road, CHPP and train load out facility, increasing the potential for a rapid start to production.

“Broadmeadow East now becomes the most advanced project within the company’s current portfolio of near- term coking coal development projects, which reflects the board’s desire to transform the company from developer to producer, as soon as possible.”

The deal will see Bowen Coking Coal pay $1 million cash plus royalties of up to $1.5 million.

The company has received binding commitments to raise $2.25 million (before costs) via a share issue.

Broadmeadow East is about 30km north-west of Bowen Coking Coal’s Isaac River project and 45km south of the company’s Hillalong coking coal tenements.

Drilling demonstrates shallow sub-crop and consistent seam thickness of 3.5m – 4.2m, making the deposit potentially suitable for an accelerated start-up, low strip ratio, open-cut mine.

The New Lenton CHPP, 20km north of Broadmeadow East, is on care and maintenance, but Bowen Coking Coal says the re-commissioning process is well understood. The rail load-out facility links into the Goonyella to Hay Point railway line.