Moolarben Coal Mine consists of an open-pit mine and an underground development project and is located near Mudgee incentral western New South Wales. It is connected by railway to Newcastle Port. Moolarben Coal Mine covers an area of 130 squarekilometers.Construction of the open-pit mine commenced in 2009 with commercial production starting in 2010.
Yancoal Australia holds 80% of the equity interest in Moolarben Coal Mine through its subsidiary, Moolarben Coal Mines PtyLimited.The designed annual production capacity of Moolarben Coal Mine is 16 million tonnes, among which the open pit mine is12 million tonnes and the underground mine is 4 million tonnes. Moolarben Coal Mine produces thermal coal.The average thickness of the main coal seam of the open-pit mine of Moolarben Coal Mine is 5.5 to 11.66 meters. As ofDecember 31, 2013, the mine’s JORC-compliant reserves were approximately 313.3 million tonnes. As of the same date, the mine’smarketable coal reserves were approximately 236 million tonnes. The Company uses conventional truck shovel mining methods in the open-pitmine and longwall machines to extract coal in the underground mine project.
Moolarben Coal Mine has a coal handling preparation plant with a capacity of approximately 1,800 TPH, and utilizesconventional equipment including medium-heavy cyclones and flotation cells which are primarily manufactured in Australia. Theoperations at Moolarben Coal Mine are powered by electricity from local power grids. We transport thermal coal products fromMoolarben Coal Mine to Newcastle Port via railway.