Yari Resources has announced that a coal-quality review of its newly acquired Arcadia coal project in Queensland, Australia, identified the potential to produce semi-soft coking coal, pulverised coal injection material and high-energy thermal coal. The project contains a reported resource of 282 million tonnes. The three potential product pathways serve steelmaking and energy markets and could theoretically give the company greater flexibility to adjust its product mix according to relative margins.
Under the acquisition terms, Yari Resources is required to make US$1.25 million in milestone payments, with a further US$20 million linked to the commencement of commercial production and the first three production anniversaries. A revenue royalty also applies. The production-linked payment structure reflects the project’s current pre-production status.
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