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Ash Fusion Concerns Surface Despite Strong Coal Quality at Rolleston South

Mining By Maxwell Dee 3 min read

Yari Minerals has validated the high quality of coal at its Rolleston South project, revealing low ash and sulphur levels that promise strong market appeal and underpin a substantial resource base.

  • Detailed coal quality testwork confirms low raw ash and sulphur in key seams
  • Potential for 7-8% ash export-quality thermal or semi-soft metallurgical coal
  • Maiden Indicated Resource of 33.7 million tonnes within a total 222.9 Mt resource
  • Conventional coal preparation expected to yield approximately 85% product
  • Ongoing evaluation of strategic development and partnerships in Bowen Basin

Rolleston South Coal Quality Breakthrough

Yari Minerals Limited (ASX: YAR) has delivered a significant update on the quality of coal at its Rolleston South Coal Project in Queensland’s Southern Bowen Basin. Detailed laboratory testwork on core from drillhole RSC015C has confirmed that the key “B” and “D” seams of the Bandanna Formation contain coal with exceptionally low raw ash and sulphur levels. These characteristics are highly sought after in export markets, where low-impurity coal commands premium pricing and broader acceptance.

The testwork, conducted by Mitra PTS at their Gladstone laboratory, demonstrated that a low-ash product containing approximately 7-8% ash could be achieved at an estimated 85% yield through conventional coal preparation methods. This balance of quality and yield is promising for the project’s commercial viability, supporting the potential for both thermal coal and semi-soft metallurgical coal products.

Resource Base and Market Potential

These coal quality results underpin Yari’s recently reported maiden Indicated Resource of 33.7 million tonnes, which contributes to a total resource estimate of 222.9 million tonnes. The quality parameters, including low total sulphur (0.35%) and phosphorus (0.07%), align well with export market requirements, enhancing the project’s attractiveness to potential partners and customers.

Executive Director Courtney Taylor highlighted the importance of these findings, noting that the data strengthens the technical foundation of the Rolleston South project. With coal quality now better defined, Yari is focused on disciplined development pathways and advancing discussions with potential counterparties in the region.

Technical Insights and Next Steps

The washability testing revealed favourable ash/yield relationships, with clean coal composites achieving the targeted low ash levels. While the coal exhibits high calorific value and low sulphur, a noted quality consideration is the moderate iron and calcium oxide content in the ash, which affects ash fusion properties and could influence handling and combustion characteristics. Further study is planned to address these aspects.

Additionally, preliminary indications suggest the potential to produce semi-soft metallurgical coal products, although further large-diameter coring is required to confirm this. Yari continues to plan additional drilling and coal utilisation studies to refine the product specifications and support future mine planning.

Strategic Outlook in the Bowen Basin

Rolleston South’s location within the well-established Bowen Basin coal region, coupled with access to high-quality infrastructure including nearby rail and port facilities, positions Yari Minerals favourably for market entry. The company is actively evaluating strategic development options and partnership opportunities to advance the project towards production.

As the company progresses, the market will be watching closely to see how these technical advances translate into commercial outcomes and whether Yari can leverage its resource quality to secure strong off-take agreements.

Bottom Line?

Yari’s confirmation of low-ash, export-quality coal at Rolleston South marks a pivotal step, but further testing and strategic moves will determine its market impact.

Questions in the middle?

  • How will Yari address the ash fusion challenges posed by iron and calcium oxide content?
  • What timeline is Yari targeting for completing further large-diameter coring and advancing development?
  • Which potential partners or markets is Yari prioritising for strategic engagement in the Southern Bowen Basin?