Yarrabee Coal Mine is an open-pit mine located in Bowen Basin, Queensland, Australia and is accessible by railway to theGladstone Port. Yarrabee Coal Mine covers an area of 203 square kilometers. The construction of Yarrabee Coal Mine started in 1981and commercial production commenced in 1982.
Currently, the designed annual capacity ofYarrabee Coal Mine is approximately 3.0 million tonnes. Yarrabee Coal Mine mainly produces low volatility PCI coal.The thickness of the main coal seam of Yarrabee Coal Mine ranges from 3.2 to 4 meters. As of December 31, 2013, the mine’sJORC-compliant reserves were approximately 56.9 million tonnes. As of the same date, the mine’s marketable coal reserves wereapproximately 45.0 million tonnes. The Company utilizes conventional truck shovel and open-pit mining methods to extract coal at YarrabeeCoal Mine.
Yarrabee Coal Mine has a coal preparation plant with a designed preparation capacity of 400 tonnes per hour, through which are able to prepare 60% of the raw coal. The remaining raw coal are crushed and sold to third parties as their quality is acceptable by themarket. The main pieces of equipment used in the coal preparation plant are heavy medium cyclone machines and floating separationmachines, which were generally manufactured in Australia. The operations at Yarrabee Coal Mine are powered by electricity fromlocal power grids. The Company transports coal products from Yarrabee Coal Mine to Gladstone Port via railway.