Duchess paradise

The proposed Duchess ñ Paradise, Fitzroy Trough, coal mining project, is located on a pastoral cattle station about 175 kilometres southeast of Derby and 30 kilometres south of the all weather, sealed, Great Northern Highway, which links the project access road, between Derby and Fitzroy Crossing, to the Derby Highway which leads to the Derby port facilities. The project is situated in the vast Canning Basin, that is part of the West Kimberley region in Western Australia.

The Duchess-Paradise Coal Project Being Developed by Rey Resources Limited

The Duchess ñ Paradise Project is being developed by Rey Resources Limited, an Australian ASX listed company that is primarily focused on the exploration and development of energy resources within Western Australia. Rey Resources hold extensive tenements for thermal coal exploration along the Fitzroy Trough section, of the over 400,000 square kilometre Canning Basin.

A positive Definitive Feasibility Study of the Duchess ñ Paradise coal mining project was completed in 2011 and Rey Resources is currently obtaining all the necessary mining and environmental approvals that will ultimately lead to the company making a final investment decision on the project proceeding any further. In 2014, Rey Resources Limited, announced it had reached a Strategic Cooperation Framework Agreement with China National Fuels Corporation, to jointly establish and develop an oil and gas production operation in the Canning Basin of Western Australia.

Duchess-Paradise Coal Mine Could Have a Life of 20 Years

Rey Resources hold tenements over a large area of the Fitzroy Trough covering a number of substantial coal deposits, of which the Duchess ñ Paradise deposit is one of the most advanced, as it is based on its resource of quality bituminous thermal coal that could support a 2.5 million tonne a year export program, sufficient to supply the Asian markets power generation needs, for the next 20 years.

There have been two methods discussed to date on the best way to target the Duchess ñ Paradise coal seam over the project's predicted life time. It is planned to initially use slot and highwall mining techniques of about 50 metres in depth and 42 metres in width in order to access the project's shallower deposits. As the coal seam goes deeper, conventional room and pillar underground mining methods will be used, as slot mining will no longer be practical.

Derby Port Agreement Changed Regarding Export of Duchess-Paradise Coal

The Duchess- Paradise project infrastructure included a substantial part of the port facility at Derby which it had sub-leased from the Shire of Derby and West Kimberley, however, in the June quarter of 2015, Rey Resources, relinquished its exclusive sub-lease rights at the port. It now intends to export its coal shipments from the Derby port via negotiation of access to a new multi-user bulk export facility.

In April, 2015, an assessment being undertaken by the Western Australian EPA (Environmental Protection Authority) into the environmental effect the Duchess ñ Paradise coal mine might have on the environment, was placed on hold until July, 2016, unless it is required to be finalised sooner. The suspension will give the project developers more time to finalise coal export arrangements at the Derby port.

The future of the Duchess ñ Paradise coal mining project remained challenging throughout 2015, particularly considering the continuing low global coal prices. Rey Resources Limited is currently involved in minimising all costs associated with holding the project while it awaits a positive upturn in the general business environment.