Kimberley: The gathering storm of industrialisation

Major coal mining threat in Fitzroy River valley

As we feared, talk of the development of the oil and gas industries in the Kimberley is proving to be the 'thin edge of the wedge'. Now there is a major emerging threat from coal mining and export.

Rey Resources Ltd holds mineral exploration tenements in the Canning Basin, which underlies much of the West Kimberley. These tenements hold deposits of about 500 million tonnes of coal and are the core assets of the company. Some of the coal is considered shallow enough for open cut mining.

The company's strategy is to develop a thermal coal export business as well as investigate the potential to develop underground coal gasification (UCG) and coal bed methane extraction. The company will sell its coal and coal products to customers in south Asia. Indian investors hold significant shareholder interests in Rey Resources.

The company is considering using Derby (Point Torment) to export the coal despite King Sound's unsuitability for large bulk carriers - even when coal is barged from shore to vessels moored in deeper water. So far the company has only done a pre-feasibility study.

Myroodah station is also under investigation for a coal bed methane gas extraction site and Rey Resources will explore for uranium deposits on behalf of Uranium Exploration Australia.

All this planned industrial development will be made much easier if the proposed LNG plant at James Price Point were to go ahead - ironically on the basis that 'the place is already stuffed'!

Rey Resources lease sites, January 2010. Source: http://www.reyresources.com/irm/content/project_coal_canningbasin.html

Rey Resources lease sites, March 2009. Source: http://www.reyresources.com/irm/content/project_coal_canningbasin.html