Company Overview
Bowen Coking Coal has established a dominant hard coking coal position in Queensland’s world class Bowen Basin.
The Company’s flagship Burton Mine Complex near Moranbah encompasses multiple operations with the Ellensfield South and Plumtree North Mines serving a centralised Coal Handling and Preparation Plant and train load out facility connected by a haul road.
Additionally, Bowen fully owns the Bluff PCI Mine near Blackwater (in care and maintenance) and holds the Isaac River (100%), Hillalong (85%) Cooroorah (100%), Carborough (100%) and Comet Ridge (100%) coking coal projects and is a joint venture partner in Lilyvale (15% interest) and Mackenzie (5% interest) with Stanmore Resources Limited.
The highly experienced Board and management aim to grow the value of the Company’s coking coal projects to benefit shareholders by leveraging innovation and maximising the assets and network of the team. A low-cost, low strip ratio Burton Mine Complex underpins the business strategy.
A STRONG FUTURE
Right sized the business around the low-cost Burton Mine Complex. Cost reduction initiatives demonstrating positive results and strip ratios declining.
Constraints on finance, insurance, capital, and approvals represent significant barriers to new players and new mines. Old mines get deeper and more costly over time.
Steel market is set to grow up to 60% by 20501.
No economically viable alternatives to met coal for new steel.
4. High-quality, well-located assets
Located in the world-class Bowen Basin with two producing pits and more near-term production assets adjacent to valuable existing infrastructure.
Bowen’s leadership has global coal experience and a strong track record for transitioning companies from exploration to production.
Japanese major Sumitomo funding up to $7.5 million for 20% of Hillalong Project as part of JV. Formosa owns 10% interest in the Lenton JV which includes a 10% stake of Broadmeadow East Project2. Formosa is a large diversified multi-national conglomerate headquartered in Taiwan.
1 Source: World Economic Forum
2 Refer ASX Release 8 July 2024
A CRITICAL COMMODITY
Hard coking coal is essential for steel making.
Structural shortfall expected, reaching 74Mt per year in 2040
Growing demand:
- Strong demand from key Asian markets (including India) expected to drive continued growth in Australian metallurgical coal exports.
- Steel demand growth of 30-60% forecast by 2050 – driven by ongoing industrialisation and increasing decarbonisation.
- Metallurgical coal expected to remain key to global steel demand and is a critical mineral input to enabling decarbonisation.
Constrained supply:
- Global underinvestment in metallurgical coal assets.
Australia and specifically the Bowen Basin dominates seaborne trade
- Australia is a market leader in the global seaborne trade of metallurgical coal, comprising c.42% of global exports in 2024 and is forecast to continue this trend, ultimately meeting 55% of all global supply by 2035.
- Forecast shortfall between seaborne metallurgical global demand and supply is expected to be 50Mt by 2035, highlighting an opportunity for Australian producers.
- Queensland accounts for 57% of Australian saleable coal and Bowen Basin is renowned for producing premium high quality premium low volatile hard coking coal.
1 Source: World Economic Forum and ReThink Technology Research
2 Source: AWE Metallurgical Coal Market Outlook Reports
3 Source: Department of Industry, Science and Resources, Office of the Chief Economist (Resources and Energy Quarterly June 2024). LTM to March 2024
4 Source: Commodity Insights 2023 entire metallurgical coal complex including Hard, Semi Hard, SSCC & PCI global seaborne supply
5 Source: Commodity Insights Seaborne Metallurgical Coal – Long Term Supply & Demand Forecast dated 19 April 2024