(EnergyAsia, May 10 2013, Friday) — Two Australian companies, International Coal Limited (ICX) and Coal Face Resources Pty Limited, have agreed to jointly explore and develop the EPC 2286 permit, also known as the Don Juan project, in Queensland’s state Surat Basin.

ICX said it will hold up to 71% of the partnership to jointly explore and develop thermal coal deposits in the 130-sq km 43 sub–block in two phases.

In its statement to the Australian stock exchange, Brisbane-based ICL said the joint venture will work on the “well known” coal-producing Surat Basin with export potential at a relatively low cost of entry.

“Clearances for an initial phase of drilling are currently being finalised but bad weather has delayed the expected commencement of drilling,” said ICL.

CEO Glenn Simpson said:

“The Don Juan joint venture will provide a relatively low cost entry into the Walloon coal measures of the Surat Basin. Development of this project is expected to yield an inferred resource in a target area with known thermal coal export potential.”