Wiggins Island Coal Terminal Announces 27 Million Tons/Year Export Commitments

Eight coal miners in Queensland's Bowen and Surat Basins have agreed to export 27 million tons a year through the Wiggins Island Coal Export Terminal, the company announced Thursday.

Xstrata PLC's (XTA.LN) Xstrata Coal subsidiary, Yanzhou Coal Mining Co. Ltd.'s (YZC) Yancoal, Wesfarmers Ltd.'s (WES.AU) Wesfarmers Curragh, Aquila Resources Ltd. (AQA.AU) and Cockatoo Coal Ltd. (COK.AU) were among the eight stage one owners announced by the industry consortium.

The coal terminal intends to start exports in 2014 and put through up to 80 million tons a year from its site at the existing port of Gladstone.

The capacity commitments, stating the miners' expected export volumes, are a necessary preliminary before pursuing finance for the A$5 billion development, which is being privately funded by local miners.

Bandanna Energy Ltd. (BND.AU), Caledon Resources, and Northern Energy Corp. Ltd. (NEC.AU) will also be Stage One owners of the initial development, which is expected to see financial close in the first half of 2011.

Other members of the 16-member Wiggins Island consortium include BHP Billiton Ltd. (BHP), Rio Tinto PLC (RTP) and Macarthur Coal Ltd. (MCC.AU).

-By David Fickling, Dow Jones Newswires; [phone]; [e-mail]