Bowen Coking Coal Confirms 11Mt ESPN Reserves Amid Operational Slowdown
Bowen Coking Coal Ltd has released its mid-2025 update on coal resources and reserves across key Queensland projects, confirming 11 million tonnes of run-of-mine coal reserves at Ellensfield South and Plumtree North. The report also highlights a significant resource increase at Hillalong South and a steady reserve position at Broadmeadow East amid ongoing administration.
- Ellensfield South/Plumtree North reserves confirmed at 11 Mt ROM coal
- Hillalong South resources increased to 60 Mt following additional drilling
- Broadmeadow East reserves steady at 1.5 Mt with mining currently halted
- Mining operations at ESPN slowing, with transition to owner operation underway
- Company remains under administration and receivership, impacting operational outlook
Overview of Bowen’s 2025 Resource and Reserve Update
Bowen Coking Coal Ltd (ASX – BCB) has provided a detailed update on its coal resources and reserves as at mid-2025, covering its key assets in Queensland’s Bowen Basin. The announcement comes amid the company’s ongoing administration and receivership, underscoring the challenges faced in maintaining operational continuity. Despite these headwinds, the company confirms a substantial coal reserve base, particularly at the Ellensfield South and Plumtree North (ESPN) pits within the Burton Mine Complex.
Ellensfield South and Plumtree North – Operational Reserves and Mining Status
The ESPN deposits, located approximately 40-45 km north-northeast of Moranbah, have a confirmed total run-of-mine (ROM) coal reserve of 11 million tonnes, comprising 10 million tonnes proved and 0.32 million tonnes probable. Mining commenced in May 2023 at Ellensfield South and expanded to Plumtree North in September 2024. The mining method employed is terrace mining with truck-shovel fleets, adapted to the moderate to steep seam dips.
Coal quality remains robust, with primary coking coal achieving ash contents between 9-12% and coke strength after reaction (CSN) values ranging from 6.4 to 7.9. However, the update notes a slowdown in mining activity, with operations transitioning from contract to owner operation and a reduction to two leased excavator fleets until early 2026. Ellensfield South pit is approaching the end of its mine life, with operations expected to cease within months, leaving Plumtree North as the sole active open-cut mine in the ESPN area thereafter.
Broadmeadow East – Stable Reserves but Mining on Hold
Broadmeadow East (BME), situated about 25 km northeast of Moranbah, maintains a steady ROM coal reserve of 1.5 million tonnes (0.96 Mt proved, 0.54 Mt probable). The resource estimate stands at 29 million tonnes, reflecting a slight reduction from the previous year due to mining depletion and geological factors. Mining operations at BME are currently halted as the company seeks economic solutions, notably considering a $20 million allowance for relocating a 132kV powerline that traverses the mining lease.
The BME coal is characterized by a primary coking product with approximately 9.5% ash and a secondary thermal product with ash content around 22-23%. The open-cut mining method planned involves terrace mining with hydraulic excavators and rear dump trucks, consistent with past operations. The existing infrastructure, including haul roads and processing facilities at the Burton complex, supports potential resumption of mining activities.
Hillalong South – Resource Growth Amidst Complex Geology
The Hillalong South (HLS) project, located roughly 80 km north-northeast of Moranbah and held in joint venture with Sumitomo Corporation, reports an increase in total coal resources to 60 million tonnes (48 Mt indicated, 12 Mt inferred). This growth is attributed to additional coal quality drilling in 2024, which upgraded much of the inferred resource to indicated status.
Geologically, HLS is complex due to igneous sill intrusions and steeply dipping seams, which have led to downgrading of potential measured resources to indicated. The coal seams targeted are expected to yield a mix of pulverized coal injection (PCI), semi-soft coking coal, and thermal coal products. No environmental or metallurgical constraints have been identified at this stage.
Context and Forward Outlook
Bowen Coking Coal’s resource and reserve update reflects a company navigating operational challenges under administration while maintaining a significant coal asset base. The ESPN pits remain the core producing assets, albeit with a slowing pace and imminent closure of Ellensfield South. Broadmeadow East’s halted mining and Hillalong South’s resource expansion highlight contrasting trajectories within the portfolio.
The company’s appointed administrators and receivers have authorized this release, signaling transparency despite financial restructuring. Market participants will be watching closely for further operational updates, potential restructuring outcomes, and the company’s ability to leverage its resource base amid volatile coal markets.
Bottom Line?
Bowen’s 2025 resource update underscores a pivotal moment as operational slowdowns and administration cloud near-term prospects despite solid coal reserves.
Questions in the middle?
- How will Bowen’s administration status affect the continuity of mining operations at ESPN and BME?
- What are the implications of the powerline relocation cost on Broadmeadow East’s economic viability?
- Can Hillalong South’s increased resources translate into a new production phase amid current market conditions?
