Moreton Resources Ltd. announced the completion of the pre-feasibility study of its AUD 250 million South Burnett Coal project, which it said could save Queensland's government-owned Stanwell Corporation between AUD 2 billion to AUD 3 billion through a 20-year offtake agreement. The project has a probable coal reserve of about 290 million tonnes, which the company foresees to be "economically mineable and saleable" at a benchmark price of AUD 50 per tonne as it is northwest of Stanwell's Tarong power stations, which are currently supplied by its own Meandu mine. It is projected to generate cash profits of up to AUD 2.4 billion over 40 years, with estimated revenues peaking at AUD 12 billion.

The company said that the pre-feasibility study has been done with a focus on domestic supply of 5.5 million tonnes per annum for a production life of 42 years but it is looking for alternatives to maximize the potential coal resource up to 880 million tonnes, considering that only 33% of the coal resource is represented in the study. The project is estimated to be completed between 12 months to 36 months commencing from construction to full production with a projected major capital expenditure of more than AUD 280 million. Up to 150 personnel will be employed during the development stage of the project, more than 250 staff for the infrastructure and more than 400 workers for the operations.