3D Resources Ltd

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3D Resources Limited

3D Resources Limited is an Australian company with a strategy of focusing on West Australian mineral exploration targeting gold, copper, lead, zinc and nickel. It also targets “advanced projects” such as coal and manganese in Indonesia, that could transform the company into a mineral producer. It describes itself as representing a “high risk – high reward” investment. On 5 December 2013 the company signalled its intention to acquire a New Zealand underground coal project in the Taranaki and King Country coalfields, through the acquisition of Croydon Coal, which held exploration permit EP40752 covering part of the Tangarakau coalfield. According to its 2013 Financial Report, 3D Resources does not appear to have ever made a profit.

Australian Company number: 120 973 775

Registration date: 28 July 2006

Ownership:

Directors
Peter MITCHELL, Managing Director
Ian HASTINGS
John CHEGWIDDEN

Ian RICHER, a former Chairman of the company, resigned as a director on 3 December 2013.

It is not known whether there is any New Zealand share-holding in the company.

Current Permits
40752 Exploration Permit (EP) 07 Nov 2005–06 Nov 2013
Location: Taranaki (100 km SW of Hamilton) 7438.3 ha
Operation name: Taranaki
Minerals: Includes coal-opencast, coal-underground, lignite and oil shale

As of 12 December EP40752 was still held by Croydon Coal Limited. If 3D Resources is successful in carrying out the necessary capital raising and obtaining the regulatory approvals required for it to obtain ownership of Croydon Coal, then it will acquire the whole of EP 40752. This permit, originally covering 10,615 ha, was issued to Solid Energy in 2005. Solid Energy surrendered part of the land area of the permit in 2012, and the remaining 7438.3 ha was transferred to Croydon Coal on 10 July 2013. On 4 December 2013, 3D Resources stated that the permit had not yet been granted a two-year extension by Crown Minerals, but it was expected that this would be processed within 1–2 months.

EP40752 surrounds Mining Permit MP41511 and shares the old workings of the former underground coal mine, the “Tatu State Mine” in the southern boundary of the two permits. From 1940 to1971, this mine produced over a million tonnes of thermal coal. Both permit areas are on Department of Conservation land, and have access arrangements in place. Consequently, 3D Resources states that, “there appears to be government support for commercial development of coal in this area.” A limited amount of data from a hole drilled by Solid Energy to the south of the MP41511/EP40752 boundary indicates that there is 2.7 m of potential coal seams. 3D Resources considers that within the area surrounding MP41511 there is sufficient coal to give the project a 10+ year mine life.

The coal is described as high-ranking, sub-bituminous thermal coal. 3D Resources believes that the potential markets for the coal include both domestic users (such as Huntly Power Station and the Glenbrook Steel Mill) and export. The company plans to utilise the Port of New Plymouth, and understands that Bathurst Resources also plans to utilise the port for the export of its West Coast coal production. 3D Resources further states that Kiwirail has indicated it is prepared to re-commission a currently mothballed freight railroad that would be required to transport the coal.

Given the major difficulties faced by Solid Energy in both their South and North Island operations, at least partly because of falling coal prices, it would seem surprising that this Australian company is planning to open a new underground thermal coal mine. 3D Resources, however, states that, “The financial and operational challenges of Solid Energy are well publicised. 3D Resources sees an opportunity to mitigate supplier risk for the Power Station and the Steel Mill, and to possibly be a cheaper source of supply to local industrial users in the North Island.”

Permit EP40752 is located in an area which has previously been targeted by Solid Energy for coal seam gas (CSG) exploration. Solid Energy, however, beset by major financial difficulties, does not appear to be actively pursuing CSG projects at present. In addition, it is doubtful whether CSG could be an economic alternative to New Zealand conventional natural gas in the immediate future.

Additional information

Croydon Coal Limited is a New Zealand company (no 4273998) incorporated on 20 Feb 2013. Three of the four directors reside in NSW, Australia. The sole asset of the company is EP 40752.

New Zealand Registered Office of 3D Resources Ltd: None known

Website: http://www.3dresources.com.au

Articles and Resources

Related SourceWatch Resources

• New Zealand and coal
• New Zealand Mining Industry Association
• Solid Energy