2022 Sydney Mining Club Lunchtime Forum – Events and Exhibitions
Sydney Mining Club Luncheon Forum 2022
‘Majors Fold in the Bowen, Leaving Coking Coal Gold’ Introducing Bowen Coking Coal (ASX: BCB) Nick Jorss, Executive Chairman
About this event
From his early days as a civil engineer and investment banker, Nick Jorss began his transformation into a successful entrepreneur and executive at Stanmore Coal Limited in 2008.
Stanmore became very successful through an acquisition – the Isaac Plains mine which it purchased from Sumitomo and Vale for $1 in 2015. The mine had been under care and maintenance since the previous year. By January 2016 it was back in action and in just two years Stanmore was producing 978,000 tons of coal per year.
Now Jorss is enjoying similar success with Bowen Coking Coal (BCB) which has purchased three undervalued coking coal assets in the Bowen Basin with an aggregate capacity of 5.0 Mtpy – near the bottom of the price cycle.
BCB is showing early promise with its Bluff mine near Blackwater shipping its first coal – 35,000 tonnes of ultra-low volatility pulverized coal – to Taiwan just a few weeks ago.
Jorss says he wants BCB to continue to grow and, despite an ugly hike in industry-level coal royalties last month, says the outlook for the industry is very strong given that coal assets cokes tend to be undervalued by larger companies due to ESG pressures.
Meanwhile, steel demand fundamentals are strong with global growth re-stimulated post-pandemic as infrastructure development improves. The Bowen Basin has the highest quality coking coal in the world, so the price and volume outlook is strong going forward.
BCB’s coal is also low in sulfur, has a high calorific value and replaces dirtier coal from India, China and Indonesia, giving the company advantages with customers looking for a reduction shows.
With BCB fully funded, Jorss is exploring several other opportunities in the region as many large miners turn their backs on coking coal and the Bowen Basin.
Level 1, 320 George Street
Sydney NSW 2000 AU
Start date: Thursday, December 1, 2022
End date: Thursday, December 1, 2022