2022-23
Annual
Report
Jameson Resources Limited
ABN 89 126 398 294
Jameson
Resources
Leading the way
to a new era in
steelmaking coal
Jameson Resources Limited is an
Australian listed company focused
on the development of the Crown
Mountain Hard Coking Coal Project
located
south-east British
Columbia, Canada. Jameson also
owns tenements for the Dunlevy
Coal Project, in north-east British
Columbia.
in
For more details visit:
www.jamesonresources.com.au
Jameson Resources Limited | Annual Report 2022-23
Page 2 of 88
Table of Contents
Highlights
2022-23 In Review
Indigenous Nations Acknowledgement
Letter to Shareholders
About Jameson
Strategy
Steel – the building block of a low
carbon future
Assets
Sustainability – the four pillars
Corporate Governance & Risk
Management
Directors’ Report
• Directors
• Remuneration Report
Auditor’s Independence Declaration
Consolidated Financial Statements
Directors’ Declaration
Independent Auditor’s Report
Shareholdings
Mineral Tenements
Corporate Directory
4
5
6
7
9
10
12
14
28
29
32
33
39
46
47
80
81
85
87
88
Jameson Resources Limited | Annual Report 2022-23
Annual Report
2022-23
Page 3 of 88
Jameson Resources Limited | Annual Report 2022-23
Highlights
for the year ended 30 June 2023
August 2022
Based on the substantial
progress of the EA process
and with support of key
Indigenous Nations, the
Impact Assessment Agency of
Canada granted an extension
to the time limit for
completion of the
environmental assessment
for the Project
December 2022
Jameson pursues due
diligence and assessment of
potential investment
opportunities for near term
production in central
Queensland
March 2023
The Impact Assessment
Agency of Canada
completes Conformity
Review and provides
feedback on the Crown
Mountain Draft
Environmental Impact
Study
November 2022
Jameson Resources secures a
placement of A$5 million (at
70% premium to previous
share price) to fund continued
progress of the Crown
Mountain Project
January 2023
Execution of a landmark
Environmental Assessment
Process and Consent
Agreement with
Yaq̓it ʔa·knuqⱡi ‘it
First Nation for the Crown
Mountain Hard Coking
Coal Project
June 2023
Finalisation of a unique
Joint Assessment and
Engagement Plan by
Impact Assessment
Agency of Canada and the
BC Environmental
Assessment Office with
input from Indigenous
Nations
Page 4 of 88
2022-2023
in Review
Despite continued headwinds for development of
greenfield coal projects globally, the past year has
seen Jameson Resources Limited (JAL or the
Company) continue
significant
development milestones on progress of the
Crown Mountain Hard Coking Coal Project
(Project).
to achieve
During the period, against continued strong
demand from steelmakers, there was limited
supply of quality steelmaking coal leading to a
decline of exports from leading producers. This
continued excess of demand over supply resulted
in prices for Prime Low-Volatile Coking Coal
peaking at US$400/t with average pricing for the
period more than US$280/t. These levels remain
in excess of historical average pricing
well
confirming the acute demand for new supply of
premium steelmaking coal.
further enhances
The continued progress made at Crown Mountain
and the challenges for alternative greenfield
projects
the attractive
development opportunity which has been
recognised by the International Energy Agency as
“the most advanced steelmaking coal project in
Canada1”.
largest
committed
During the year, Nippon Steel Corporation,
Japan’s
to
steelmaker
investing US$1 Billion into acquiring an equity
interest associated with the planned separation
of Teck Resources’ Elk Valley Operations which
surround the Crown Mountain Project. Whilst
that separation has been delayed, Nippon Steel’s
substantial
commitment demonstrates
continued
leading
steelmakers to securing access to the premium
steelmaking coal of the Elk Valley.
the
the world’s
interest of
Jameson Resources Limited | Annual Report 2022-23
Highlights
The highlights for the 2023 financial year have
included:
• Execution of a
landmark Environmental
Assessment Process and Consent Agreement
with Yaq̓it ʔa·knuqⱡi ‘it First Nation for the
Crown Mountain Hard Coking Coal Project
• A placement of $5 million (at 70% premium to
previous share price) to fund continued
progress of Crown Mountain Environmental
Assessment Application
• Based on
substantial progress of
the
assessment and with the support of key First
Nations, the Impact Assessment Agency of
Canada granted an extension to the time limit
for
environmental
completion of
assessment for the Project.
the
• Consideration of a number of potential value-
add acquisitive growth opportunities whilst
approvals for the Crown Mountain Project are
being progressed.
Challenges and Risks
In contrast to the progress of the Crown
Mountain Project, the 2023 financial year has also
seen its share of challenges to other greenfield
developments around the world. This includes
the rejection of Glencore’s proposed Sukunka
Project in north east British Columbia due to
impact on threatened species and opposition
from
Indigenous Nations, whilst delays to
approvals of new projects in Australia have
occurred due in large part to opposition from
environmental groups.
the
challenges
Despite
faced by other
proponents, the Company has maintained its
unwavering commitment to progressing the
permitting of the Crown Mountain Project,
driving
it closer to obtaining the relevant
approvals to enable Final Investment Decision
(FID) and ultimately development.
1 International Energy Agency - Coal 2020
Page 5 of 88
Jameson Resources Limited | Annual Report 2022-23
Indigenous Nations Acknowledgment
Jameson acknowledges that the Crown Mountain Hard Coking Coal Project is located on lands within ʔakanuxunikJ ʔamakʔis in the East
Kootenay region of south-east British Columbia, Canada. These are the unceded ancestral lands of Yaq̓it ʔa·knuqⱡi ‘it First Nation over
which it declares and exercises its inherent aboriginal rights and title.
The lands are also part of the shared territories of the other Ktunaxa nations: ?Aq̓am First Nation, ʔakisq̓nuk First Nation and Yaq̓an
Nu?kiy First Nation and the Secwepemc (Shuswap), the Blackfoot Confederacy: Kainai (Blood), Piikani and Siksika; Stoney Nakoda:
Bearspaw, Chiniki, and Goodstoney; Tsuut’ina Nation; and Métis citizens.
Jameson acknowledge the many First Nations, Métis and Inuit who have lived in and cared for these lands for generations. We are
grateful for the traditional Knowledge Keepers and Elders who are still with us today, those who have gone before us and emerging. We
make this acknowledgement as an act of reconciliation and gratitude to those whose territory where our Project is located.
Jameson is committed to progressing design, assessment, development, operation, closure and long-term post-mining land use of the
Crown Mountain Project in close partnership with Indigenous Nations. Jameson believes that close engagement with and active
participation of Indigenous Nations in the design, regulation, implementation and monitoring of the project will lead to an improved
sustainable project for the environment and the community.
Jameson is committed to supporting the United Declaration on the Rights of Indigenous Peoples and in particular the right to Free, Prior
and Informed Consent (FPIC) in relation to the project assessment and permitting process.
Page 6 of 88
Jameson Resources Limited | Annual Report 2022-23
Letter to Shareholders
Progressing the Crown
Mountain Hard Coking Coal
Project in British Columbia
Dear Shareholder,
The past year has been a significant year for
your Company, Jameson Resources Limited, in
progressing the Crown Mountain Hard Coking
Coal Project (the Project) from the evaluation
phase into the detailed permitting phase. It
has been a year of highlights critical to moving
the Project closer to obtaining relevant
approvals to enable Final Investment Decision
(FID).
The Company is proud to have been able to
continue to progress the Project against
another year of significant challenges for
other greenfield coal developments.
We are pleased to note that during the year,
there has been continued strength in global
demand for seaborne steelmaking coal. This
robust demand and the challenges for current
and future supply supports the Company’s
view on the fundamentals of the steelmaking
coal market - that growth
in demand
continues to exceed the growth in supply, a
situation that provides an excellent platform
for development of Crown Mountain.
The Company progressed a number of
milestones and activities toward development
during the year, in particular the progress of
close engagement with Indigenous Nations,
Local, Provincial and Federal Government and
local communities and stakeholders.
The most significant milestone was the
execution in January 2023 of an EA Process
and Consent Agreement with Yaq̓it ʔa·knuqⱡi
‘it First Nation (also known as Tobacco Plains
First Nation), the Indigenous Nation which
exercises
inherent and Section 35
Constitution Act aboriginal rights and title
over the area in which the project is to be
developed.
its
This landmark agreement is a huge step in the
new era for natural resource development in
Jameson’s
Canada
commitment to establishing a new way of
doing business as part of the strategy towards
a new era for steelmaking coal.
demonstrates
and
The Company progressed a number of key
milestones and activities in the assessment
and permitting of the project during the
year.
Once finalised, the study, will be used as
a basis to assess opportunities to further
reduce carbon emissions form the
project.
The Project is being jointly assessed by
Provincial and Federal Regulators and the
EA Application has been developed to
requirements detailed
meet
in
the
Information Requirements
Application
issued
Columbia
by
Environmental Assessment Office (EAO)
and the EIS Guidelines issued by IAAC.
British
the
collection
The comprehensive EIS/EA Application
based on more than four years of detailed
comprehensive
and
data
technical evaluation. The design of the
Project includes accelerated reclamation
initiatives, best practice environmental
design, management and monitoring to
ensure protection of flora, fauna and water
quality in the Elk Valley.
Joint
unique
During the year, the EAO and IAAC finalised
and
a
Engagement Plan which governs the
process for how the two jurisdictions will
work together to assess the Project.
Assessment
The location and scale of the Project
provides a unique opportunity for the
development of a premium steelmaking
coal project with a substantially reduced
that of
impact
environmental
historical and current coal production.
than
Jameson recognises the critical ongoing
role of steelmaking coal in global economic
development and acknowledges increasing
concern about carbon emissions from the
steel industry.
During the year, Jameson initiated a review
of potential Greenhouse Gas Emissions
from the project to enable benchmarking
of the project with other current and
planned steelmaking coal production.
is currently being
That review which
finalised,
like other
that,
indicates
Canadian projects, carbon intensity of the
project is less than that of Australian, US or
other producer locations.
Jameson is committed to being an ESG
Leader among steelmaking coal developers
and that commitment includes:
•
Close engagement and participation
with Indigenous Nations in all aspects
of project development
Design of the project to seek to
identify all opportunities to reduce
environmental
impact and utilise
opportunities to offset impacts to
seek a net environmental benefit,
where possible
•
• Ongoing assessment of opportunities
to reduce carbon intensity of the
Project, where commercially feasible
and technology available
transparent
thorough
ensuring a
assessment
deep
and
process
engagement with Regulators and the
community.
•
include
The Company looks forward to the year
further
ahead which will
progress of key development milestones
formal
for Crown Mountain. The
Technical Review of
the EIS/EA
Application is expected to commence in
late 2023 and the company
looks
forward to working with regulators,
Indigenous Nations and
local
community to undertake review of the
comprehensive
the
Jameson is confident that the Project is the
right scale, location and design to ensure it
can be developed to establish a new
environmental
benchmark
sustainability.
for
Nicole Hollows
Chair
Michael Gray
Managing Director
28 September 2023
Page 7 of 88
Jameson Resources Limited | Annual Report 2022-23
Page 8 of 88
About Jameson
Jameson aspires to be an independent supplier of raw materials
committed to safeguarding the environment and contributing to
economic and community prosperity.
Jameson is a pure steelmaking coal Company with the primary
focus on its flagship asset the Crown Mountain Hard Coking Coal
Project, located in southeast British Columbia, Canada’s largest
steelmaking coal producing region.
its subsidiary NWP Coal Canada Ltd,
is
Jameson, through
developing the Crown Mountain Hard Coking Coal Project. The
Project is strategically located proximate to the electrical grid, gas,
all-seasons roads and Canadian Pacific’s rail line. This infrastructure
connects the Project to three deep water ports on the west coast
of British Columbia.
looking
is actively
Jameson
for other steelmaking coal
opportunities within the evaluation phase in developed countries
with low sovereign risk (i.e. Canada and Australia) to add value and
allow the Company to build on its strong foundation of the Crown
Mountain Hard Coking Coal Project in Jameson’s pursuit to become
a multi-asset resource Company that responsibly supplies raw
materials essential to improving people's lives.
Jameson Resources Limited | Annual Report 2022-23
The next
generation of the
Canadian
steelmaking coal
industry
Our Strategic Goals
Commercially Focused
Sustainable Growth
Engaged Stakeholders
Page 9 of 88
Jameson Resources Limited | Annual Report 2022-23
Dec Quarter 2023
Expected
commencement of
formal Public Technical
Review of EA/EIS
Jan 2023
Execution of landmark
EA Process and Consent
Agreement with Yaq̓it
ʔa·knuqⱡi ‘it First Nation
August 2021
BFS Yield Optimisation
Study completed
increasing NPV by 25%
over the 2020 BFS NPV
July 2020
Bankable Feasibility
Study (BFS) and
Environmental baseline
studies completed
2018
Bathurst Resources
Limited becomes a
strategic partner for the
Crown Mountain Project
July 2023
Finalisation of unique
Joint Assessment and
Engagement Plan by
IAAC and EAO
April 2022
Completion of
Environmental
Assessment Application
and submission to IAAC
for review
June 2021
Completion of all
technical assessments
for the Environmental
Assessment Application
2019
Initial coal qualities
testing results confirm
coking coal properties at
Crown Mountain
2014
Pre-Feasibility Study for
Crown Mountain Project
(CMP) completed
Page 10 of 88
Continued
Progress of the
Crown Mountain
Project along the
value
development
curve
Jameson Resources Limited | Annual Report 2022-23
Jameson Resources
An ESG Leader in Steelmaking Coal
Our vision
An independent supplier of raw
materials committed to safeguarding
the environment and contributing
economic and community prosperity
Jameson will deliver value and growth sustainably
through becoming an ESG Leader in Steelmaking
Coal development and production.
ESG Leadership will be achieved by:
•
•
•
•
•
•
Engagement and partnership with
Nations
Indigenous
Comprehensive Environmental Assessment
to
design, develop, operate and close a Project with a
reduced environmental footprint of historical and
current production
Investigation of options to reduce the carbon
intensity of production benchmarked against current
future steelmaking coal producers with
and
alternative sources of energy (eg. Hydro or wind)
Being open, transparent and working together with
all stakeholders
Being commercially focused, with a continuous
improvement mindset
Taking a pro-active approach to deliver its projects
responsibly and sustainably for all stakeholders.
Page 11 of 88
Jameson Resources Limited | Annual Report 2022-23
STEEL
The building block of a low
carbon future
Steel is essential for economic growth and the transition to a low carbon environment:
•
•
•
•
Essential for continued urbanisation and lifting global living standards
Enables the transition to renewable energy and net zero economy
Critical for infrastructure development, including that required to support electrification and
decarbonisation
Ideally suited to the circular economy – steel is the most recyclable of all major industrial materials
(>90% recycle rate) Arcelor Mittal 2023
Global Metal Production 2022
1,898
2,000
1,500
1,000
)
t
M
(
n
o
i
t
c
u
d
o
r
P
l
a
u
n
n
A
500
0
68
Al
Steel
22
Cu
13
Zn
5
Pb
3
Ni
Steel will be the foundation on which the transition to a lower carbon future will be built. All decarbonisation
technologies create substantial increased demand for materials. While focus has been on copper and battery
minerals, the greatest demand across all technologies is increased steel consumption(1). To achieve transition
to meet committed 2050 net zero targets, International Renewable Energy Agency (IRENA) estimates a total
investment of more than US$110 trillion in hydro, wind, solar and transmission networks with resulting
substantial increase in global steel demand(2)
Jameson and various other coal and steel producers, maintain that despite research and pilot scale projects in
steel production using DRI and Hydrogen, the majority of steel will continue to be produced in conventional
blast furnaces until at least 2050 (well after when production from Crown Mountain would be exhausted).
This position is consistent with that of the world’s leading export steelmaking coal producers which confirm
the continued high demand for high quality hard coking coal:
“We believe that a wholesale shift away from blast furnace steelmaking, which uses metallurgical
coal, is still decades in the future and that metallurgical coal will remain an essential input into the
steelmaking process, which is critical to support decarbonisation infrastructure” (BHP Managing
Director Mike Henry AFR 16 Aug-2022)
“Long-term demand for seaborne steelmaking coal will remain robust to 2050. At the same time,
supply growth is constrained. High-Quality Steelmaking Coal is Required for the Low-Carbon
Transition” (Teck - Steelmaking Coal Resilience May 2022)
(1) The role of critical minerals in energy transition. IEA2021
(2) World Energy Transitions Outlook 2022 IRENA,
Page 12 of 88
Jameson Resources Limited | Annual Report 2022-23
Case Study: Indigenous Engagement
The Crown Mountain Hard Coking Coal Project is located on lands within ʔakanuxunikb ʔamakʔis in the East
Kootenay region of south-east British Columbia, Canada. These are the unceded ancestral lands of Yaq̓it
ʔa·knuqⱡi ‘it First Nation (YQT) over which it declares and exercises its inherent aboriginal rights and title.
In January, Jameson’s Canadian subsidiary, NWP Coal Canada Limited (“NWP”) executed a landmark
Environmental Assessment Process and Consent Agreement (the “Agreement”) with Yaq̓it ʔa·knuqⱡi ‘it First
Nation for the Crown Mountain Project. Under the Agreement, YQT will act as a regulator and reviewer of the
Project and in so doing will fully engage in the Environmental Assessment of the Project for the purpose of
providing or withholding Free, Prior and Informed Consent to the Project following completion of the
Environmental Assessment.
This Agreement paves a new era of relationship-building with Indigenous Nations throughout the EA process
and for the lifetime of the Project garnering a mutual respect partnership between both parties.
“Yaq̓it ʔa·knuqⱡi ‘it is very pleased to see NWP committing to a consent-based
environmental assessment for the Project. For too long, Indigenous Nations have
not been brought to the table in decision-making directly affecting our rights and
interests. We look forward to working with NWP and the regulators as we exercise
our full seat at the table as a decision maker in our own territories.”.
Nasuʔkin Heidi Gravelle,
(Chief) Yaq̓it ʔa·knuqⱡi ‘it
“This is a huge step in the new era for natural
resource development in Canada. Jameson is
committed to designing and operating an improved
Project that incorporates building environmental
controls from the beginning with learnings from the
past and taking input and direction from Indigenous
Nations. Having support and a strongly built
relationship with YQT throughout the process and
timelines of the Project, ensures that NWP will
understand the
impacts of the Project on
Indigenous Nations
in
natural
resource
development.”
Michael Gray
Managing Director
Jameson Resources
Page 13 of 88
Jameson Resources Limited | Annual Report 2022-23
Case Study: Decarbonisation
The supply of steelmaking raw materials with a lower emission intensity is a major challenge to the steel
industry. The decline and depletion of existing steelmaking coal mines demands the development of new
supply of premium steelmaking coal, produced in a sustainable manner and with a lower emissions footprint.
The Crown Mountain Hard Coking Coal Project location and layout provides substantial opportunities for
decarbonisation to reduce Scope 1 and 2 GHG emissions compared with historical steelmaking coal
production.
Jameson is actively pursuing decarbonisation opportunities for Crown Mountain, including:
• Use of hydro-generated electricity
• Working with contractors and equipment manufacturers to assess adoption of Electric mobile
equipment and use of regenerative braking
• Use of hyperbaric coal drying rather instead of thermal (gas-fired) drying
• Working with suppliers on rail transport and port loading for opportunities to reduce GHG
emissions and improved energy/fuel efficiencies
• Work with steelmaking customers to consider options to increase blast furnace efficiency through
maximising use of HCC and PCI and other GHG reduction initiatives.
Page 14 of 88
Jameson Resources Limited | Annual Report 2022-23
Case Study: Environmental Management
Crown Mountain has been designed to represent
a new standard in environmental management
of steelmaking coal projects. Key features:
• Cumulative Effects assessment across the
Elk Valley region and commitment to strict
licence conditions and
environmental
the Project’s
offsets
contribution to existing cumulative effects is
essentially unmeasurable
to ensure
that
• Active engagement and
involvement of
indigenous nations in project assessment
and ultimately enforcement
•
Layer cake waste dump design to provide
permanent source control of Selenium. No
ongoing management required or legacy
issues following mine closure
• Higher water recovery from product coal
total overall
reduces
and processing
additional water demand
•
Shallow coal seams ensures that less waste
rock is required to be excavated than in
current producing mines and
other
minimises total disturbance area
• No Tailings Dam – dry tailings and coarse
coal reject are placed in overburden dump
to facilitate Selenium source control plan
• Hyperbaric Drying – excess moisture is
removed from product coal via hyperbaric
drying reducing need for gas-fired thermal
drying as used in existing Canadian mines
• Opportunities
for decarbonisation and
reduced GHG emissions through use of
hydro-electricity, electric mobile fleet and
regenerative braking use of biodiesel and
conveyors where possible.
Page 15 of 88
Jameson Resources Limited | Annual Report 2022-23
Our Assets
Jameson owns
interests in two
steelmaking coal
prospects, Crown
Mountain and
Dunlevy, both located
in British Columbia,
Canada
Figure 1 Crown Mountain and Dunlevy Project Locations
Page 16 of 88
Jameson Resources Limited | Annual Report 2022-23
Crown Mountain
Ownership: 90% owned by NWP Coal Canada Limited
Jameson owns 77.94% of NWP Coal Canada Limited
Commodity: Hard Coking Coal (86%) and PCI (14%)
Location: Elk Valley, British Columbia, Canada
Figure 2 Crown Mountain Coal Licence Locations
Figure 2: Crown Mountain Coal Licence Locations
Page 17 of 88
Overview
The Crown Mountain Hard Coking Coal Project (Crown
Mountain) is a high-quality steelmaking coal opportunity for
development, located in the Elk Valley, British Columbia. It is
situated between two of Teck Resources operating mines -
~11km from Line Creek and ~8km from Elkview. The Project is
proximate to existing common user rail that accesses three
deep water ports on the West Coast of Vancouver, Canada.
Crown Mountain has been advanced through exploration and
coal quality work, Preliminary Economic Assessment, a Pre-
Feasibility Study completed in 2014, an Updated Pre-Feasibility
in 2017, the release of the Bankable Feasibility Study (BFS) in
July 2020 and the Yield Optimisation Study completed in Aug
2021.
The Crown Mountain Yield Optimisation Study (Aug 21) based
on the BFS, included the following highlights:
• Robust economic outcomes including a pre-tax NPV(10) of
US$469m and IRR of 40.2%, assuming purchase of the
mobile equipment, workshops and ancillary infrastructure
• Represents a compelling high quality coking coal
opportunity for development with a competitive operating
and capital cost structure and access to existing common
user rail and port infrastructure
• High quality low volatile (‘LV’) steelmaking coal, with the
Life of Mine (LOM) product mix being 86% Hard Coking Coal
(HCC) and 14% Pulverised Coal Injection (PCI) coal
• The mine plan is based on an average LOM production rate
of 1.96 Mtpa of saleable coal, 57.5 Mt Total Run of Mine
(ROM) from the North, East and South pits over 15 years.
At completion of the BFS, the Company also identified a
number of areas of potential optimisation to be evaluated, in
order to maximise the economic outcomes, whilst finalising the
relevant environmental and permitting approvals to be ready
for financial investment decision.
The Crown Mountain BFS was based on resources of 90.2Mt,
including 66.5Mt in the Measured and Indicated category
across three pits – North, East and South pits. There is 23.7Mt
of Inferred resource in the Southern Extension that sits outside
the aforementioned pits that could provide additional organic
growth through either extension of mine life or increased
annual production. Additional work is required to upgrade the
resource category, determine the coal quality and understand
production costs.
The HCC quality in the North and East pits is comparable to the
seaborne Low Volatile Matter (LV) Premium HCC Benchmark
and is expected to achieve this benchmark pricing. The HCC
quality in the South Pit is expected to receive a 10% discount to
the LV Premium HCC Benchmark as a result of a lower Coke
Strength after Reaction (CSR) and higher phosphorous than
that in the North and East pits.
The PCI is a Low to Mid Volatile PCI coal that compares
favourably with the Australian Low to Mid Volatile PCI coals on
the basis of ash, sulphur, carbon content and calorific value
which are the key determinants in coke replacement ratio.
Jameson Resources Limited | Annual Report 2022-23
Crown Mountain PCI coal’s coke replacement ratio is
similar to that achieved by the LV PCI coals produced in
Australia.
The defined mining parameters established by the BFS and
include average annual
Yield Optimisation Study
production of 1.96 Million Tonnes Per Annum (Mtpa) over
the life of mine. The Project has a favourable Run-of-Mine
(ROM) strip ratio 4.7:1 BCM:ROM tonnes and an average
plant yield of 48.7%. The first four years of mining occurs
in the North and East pits which is lower ROM strip ratio of
4.1 BCM:ROM tonnes and higher yield (61.2%), producing
up to 2.3 Mtpa. The mine then progresses to the South Pit
which is mined from the South to the North.
The Company has been progressing the environmental
permitting of the Project since 2014. That process
commenced with the Project Description, followed by the
successful
Information
Requirements (AIR) in 2018 that forms the basis for
Environmental Assessment Certificate Application (EA
Application).
the Application
receipt of
The Company completed all environmental technical
studies including baseline work, terrestrial modelling, flora
and fauna studies, air, ground water and surface water
modelling completed in June 2021.
The EA Application was completed in April 2022 and
submitted to the Impact Assessment Agency of Canada
(IAAC) for review. It is anticipated that the formal technical
review of the Application will commence in late 2023.
Page 18 of 88
Location and Tenure
The Project is located within the Elk Valley coal field in south-
eastern British Columbia. This region is the world’s second
largest basin for premium hard coking coal and is home to four
operating mines which produce over 20 million tonnes per
annum, representing a majority of Canada’s total coal exports.
is
Crown Mountain
in close proximity to two significant
steelmaking coal mines: Line Creek which is 12km to the north,
and Elkview which is 8km to the southwest (Figure 2). The Project
includes ten granted coal licences (418150, 418151, 418152,
418153, 418154, 418966, 419272, 419273, 419274, and 419275)
covering an area of 5,630 hectares.
Name
License
Number
Status
Area
(Ha)
Rent
(CAD)
North Block
South Block
Crown East
West Crown
Southern Extension
Northwest Extension
Grave Creek
Northern Extension
Alexander Creek
Grave Creek West
418150 Granted
334
$3,340
418151 Granted 1,001
167
418152 Granted
251
418153 Granted
835
418154 Granted
974
418966 Granted
779
419272 Granted
705
419273 Granted
335
419274 Granted
251
419275 Granted
Total 5,630
$10,010
$1,670
$2,510
$8,350
$6,818
$5,453
$4,935
$2,345
$1,757
$47,188
Table 1 Crown Mountain Coal Licence Summary Table (CAD)
Bankable Feasibility Study
July 2020
On 9 July 2020, the Company announced the robust economic
results of the Bankable Feasibility Study (BFS) for Crown
Mountain.
The Project has a low strip ratio, an average life of mine (LOM)
1.7Mtpa clean coal product operation at competitive operating
costs with direct access to global seaborne markets through one
of the three deep water ports on the west coast of British
Columbia.
The BFS demonstrated a technically and economically robust
Project that will produce an average of 86% LV HCC and 14% PCI
coal over the 15-year mine life (see Table 2 on the following
page). The study was led by Stantec Consulting’s (Stantec)
Vancouver office with other consultants engaged including
Sedgman Canada Limited (a member of CIMIC Group), and SRK
Consulting (SRK).
The BFS confirmed that Crown Mountain represents a compelling
high quality hard coking coal development opportunity with a
competitive operating and capital cost structure and access to
existing common user rail and port infrastructure.
Jameson Resources Limited | Annual Report 2022-23
The BFS also identified a number of optimisation opportunities
which could further improve the positive economics of the
Project. These included:
•
Yield Optimisation
•
Increased Coal Handling and Processing Plant (CHPP)
Utilisation
Review of CHPP Capital costs
Contract mining or mobile equipment leasing
Consideration of potential Build-Own-Operate-Transfer
options for the CHPP
Further exploration in Southern Extension area.
•
•
•
•
Yield Optimisation Study
August 2021
The Yield Optimisation Study,
opportunities to be progressed, involved the following:
first of
the
these
•
•
•
Assessing the ash yield curve of each coal block to assess
opportunities to improve CHPP yield
Testing of higher ash product coal samples to understand
any potential impact a higher ash product has on key coking
properties of the product
Assessment of the overall Project economics of producing a
higher ash product by analysing potential production
increase against any relative revenue discount due to a
higher ash product.
The Yield Optimisation Study confirmed reduced production cost
and increased sales volume resulted in an overall 25% increase in
pre-tax NPV10 to US$469 million, compared with that in the BFS.
In addition, the Study confirmed:
•
•
•
•
increased production and substantial improved potential
economic outcomes by increasing product ash levels from
9.5% to 10.5% for North and East pits product and from 9.5%
to 11.0% for South Pit product
Increased product ash levels enable increased processing
yield which results in a direct increase in product coal and
export sales
The study determined an increased Life-of-Mine product
yield of 52.9% compared with 48.8% in the BFS resulting in
an 8.4% increase in average annual product coal sales from
1.8 to 1.96 Mtpa
The increased yield and consequent increase in saleable
export product results in a 4% reduction in cash operating
costs
further
enhancing the Project’s attractive position on the cost curve.
to USD89.41/tonne,
(FOB Vancouver)
Page 19 of 88
Resources
Reserves
Jameson Resources Limited | Annual Report 2022-23
The JORC Code requires that at a minimum, a preliminary
feasibility study or feasibility study be completed as the basis
for the definition of reserve quantities. A feasibility study has
been undertaken for the Crown Mountain Property. The BFS
run-of-mine surface mineable reserve summary shown in Table
3 Run of mine surface mineable reserve summary (ktonnes) (as
at July 8 2020), identified 57.5 million as a coal reserve, of
which 43.6 million tonnes are in the Proven category and 13.9
million tonnes in the Probable category.
The updated 2021 Resources are provided in Table 2
Resource summary (Mtonnes) (as at July 8 2020) Resource
summary (Mtonnes) (as at 8 July 2020) below. All stated
resources are inclusive of the reserves.
The estimates have been prepared in accordance with the
requirements of the Canadian National Instrument (NI) 43-
101 and the Canadian Institute of Mining, Metallurgy and
Petroleum (CIM) Definition Standards. NI 43-101 is the
Canadian equivalent of the 2012 Joint Ore Reserves
Committee (JORC) Standard.
is an
A Qualified Person (Competent Person), who
employee of Stantec, validated the available geological
data, constructed the computer based geological model
and undertook resource estimation.
Table 2 Resource summary (Mtonnes) (as at July 8 2020)
Resource Area
North Pit
South Pit
South Extension2
Total
Measured
(Mt)
Indicated (Mt)
Measured &
Indicated (Mt)
Inferred (Mt)
Measured,
Indicated &
Inferred (Mt)
10.1
41.0
-
51.1
3.0
12.4
-
15.4
13.1
53.4
-
66.5
-
-
23.7
23.7
Table 3 Run of mine surface mineable reserve summary (ktonnes) (as at July 8 2020)
ASTM
Group
Bituminous
Area
North Pit
East Pit
South Pit
Sub-Total
Run of Mine Coal Reserves
(Ktonnes)
Proven
Probable
COKING
9,603
2,271
27,975
39,848
PCI
429
135
3,218
3,781
COKING
3,924
532
4,828
9,284
Total Proven & Probable
43,629
13,911
Total
Notes:
57,540
These are ROM (run-of-mine) tonnages prior to processing with as-received moisture content approx. 4%.
Reference point is before the rotary breaker.
Reserves within economic pit based on coking coal price range of CAD$187-$207/product tonne and PCI coal price of CAD$136/product tonne.
Rounding as required by reporting guidelines may result in apparent summation differences.
2 Southern Extension resource estimate is from the March 11, 2014 PFS report. No additional work has been completed on this portion of the Crown
Mountain deposit since 2014.
Page 20 of 88
13.1
53.4
23.7
90.2
PCI
1,068
46
3,514
4,627
Competent Persons Statement
Mineral Resource Estimate, Mineral Reserve Estimate and Bankable Feasibility Study Results
Jameson Resources Limited | Annual Report 2022-23
The information in this Annual Report relating to the Mineral Resource Estimate, Mineral Reserve Estimate and Bankable Feasibility
Study Results of the Company’s Crown Mountain Coal Project are extracted from the ASX Release entitled Crown Mountain Bankable
Feasibility Study announced on 9 July 2020 and is available to view on the ASX website (ASX:JAL), and the Company's website. The
Company confirms that it is not aware of any new information or data that materially affects the information included in the original
market announcement and, that all material assumptions and technical parameters underpinning the resource and reserve estimates
and bankable feasibility study results in the relevant market announcement continue to apply and have not materially changed. The
Company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified
from the original market announcement.
Coal Quality and Exploration Results
The information in this Annual Report relating to the Coal Quality and Exploration Results on the Company’s Crown Mountain Coal
Project is extracted from the ASX Releases entitled “Crown Mountain Coal/Coke Testing Program Complete: Hard Coking Coal Confirmed
(Updated)” announced on 2 August 2019, and “Additional Testing Confirms Crown Mountain as Premium Hard Coking Coal” announced
23 April 2019, and are available to view on the ASX website (ASX:JAL), and the Company's website. The Company confirms that it is not
aware of any new information or data that materially affects the information included in the original market announcements and, that
all material assumptions and technical parameters underpinning the coal quality and exploration results in the relevant market
announcement continue to apply and have not materially changed. The Company confirms that the form and context in which the
Competent Person’s findings are presented have not been materially modified from the original market announcement.
Page 21 of 88
Mining
Given the shallow geology of the resource, all mining at the
Crown Mountain Project will be open pit. Mining equipment
includes excavators, front end loaders, and haul trucks,
supported by dozers, backhoes, and blasthole drills. This type
of equipment is typical for Elk Valley mining operations and
includes equipment specific to selective mining in certain
thinner seams present on the property. The majority (90%) of
overburden removal is estimated to require blasting.
Processing
Coal processing occurs through a Coal Handling and Process
Plant (‘CHPP’) that is located near the North Pit. Coal will be
trucked to the CHPP where it will be processed. The average
LOM processing yield is 52.9%, delivering a clean coal, or
saleable coal resource of 28.5Mt at an average clean coal strip
ratio of 9.5:1 BCM:tonne clean coal.
The primary processing method is heavy media cyclone and
reflux classifier, supplemented by column cell flotation for fines
recovery. A hyperbaric filter is included in the plant design to
reduce the product moisture of the fine coal. The CHPP design
developed in the BFS has been maintained in the Yield
Optimisation Study but resultant plant yields have been
increased to reflect increased product recovery due to
Jameson Resources Limited | Annual Report 2022-23
increased target product ash levels. The resultant CHPP yield
for coking coal product from each Pit is summarised in Table 4
below.
Coal Quality
Coal from the Crown Mountain Project is modelled to be 86%
Premium low-volatile Hard Coking Coal and 14% mid-vol PCI
(Pulverised Coal Injection).
Washed coal will be conveyed down the mountain (3 km) and
then trucked approximately 15 km to a stockpile/loadout area
where the product will ultimately be loaded on train with a 152
railcars (16,000t capacity) on a new rail loop to be located
adjacent to Canadian Pacific’s (CP) existing common-user
railway. The loadout facility includes covered storage with a
batch weigh bulk loading system for accurate load control and
freight cost management.
Key features of the coking coal product are high CSR (Coke
Strength after Reaction) and
low volatile matter (VM)
consistent with similar Elk Valley coals. High CSR and low VM
are critical coke-making characteristics that determine demand
and relative market position for coking coals.
Crown
Mountain’s Hard Coking Coal product is comparable with the
established global Premium Low Vol Hard Coking Coals brands
as shown in Figure 3 below.
Table 4 Modelled Coking Coal Yields - BFS (Jul 2020) & Yield Optimisation Study (Aug 2021)
North Pit
East Pit
South Pit
Product Ash
(% ad)
9.5
Yield
(% ar)
56.6
Product Ash
(% ad)
9.5
Yield
(% ar)
47.0
Product Ash
(% ad)
9.5
Yield
(% ar)
41.2
10.5
57.8
10.5
49.7
11.0
47.6
BFS July 2020
Yield Optimisation
Study August 2021
Figure 3 Crown Mountain Low Vol Hard Coking Coal
Page 22 of 88
Jameson Resources Limited | Annual Report 2022-23
Infrastructure
Transport
The Project is located in an area with well supported
infrastructure for coal mining. Teck operates a total of four
coking coal mines in the Elk Valley and general vicinity of the
Project: one of these operations is south of Crown Mountain
and three are north. As a result, mainline rail, power,
supporting communities and services are all nearby.
CP’s rail is a combined 18 km from the wash plant: 3 km of
overland conveyor and a 15 km truck haul. Power lines will be
extended 14 km from the main transmission line to the
preparation plant. A natural gas line of similar length is planned
to provide heat for the plant, shop, and support facilities.
Existing access roads to the Project will be upgraded: these
roads have already been used for logging operations and
product transportation by a local quarry.
Water supply will originate from two sources: a sediment pond
located in the Alexander Creek drainage and a storage pond to
be located adjacent to Grave Creek. Seasonal flow studies and
estimated Project water requirements indicate this is a viable
solution.
The towns of Sparwood, Elkford, Fernie, and Crowsnest Pass
will be the source of the Crown Mountain workforce, and
house numerous mining-related service industries.
Once loaded onto rail, carrier CP will transport the coal to
either Westshore Terminals (‘Westshore’) near Vancouver, or
to Ridley Terminals (‘Ridley’) near Prince Rupert, where it will
be loaded into ships. Westshore, approximately 1,200 kms
distance is the terminal of choice for Crown Mountain coal,
with an estimated transportation cost (combined rail and port)
of USD29.25/tonne (July 2020 BFS).
Capacity expansion continues at the Vancouver ports.
Currently Teck is undertaking an expansion project at the
Neptune Terminal where they have publicly stated they will be
shipping coal from once it is complete and their Take or Pay
contract with Westshore expired in 2021. As a result, it is
believed Westshore will have available capacity when the first
coal from Crown Mountain is ready for shipment. All clean coal
production from Crown Mountain is assumed to be exported.
Coal is sold FOB vessel.
Capital Expenditure
The Total Pre-Production Capital expenditure to support the
mining and processing operation has been estimated in the BFS
and Yield Optimisation Study to be USD352 million (CAD469m)
as detailed in Table 5 Pre-Production Capital Expenditure ($M)
(as at July 8, 2020) below.
Table 5 Pre-Production Capital Expenditure ($M) (as at July 8, 2020)
Pre-Production Capital*
Mobile Mining Equipment
Wash Plant and Coal Handling Facilities
Infrastructure (rail load-out, roads, power, offices, shop etc)
Pre-Strip and Indirects
SUBTOTAL – CAPITAL
Owners costs
Reclamation Security
Contingency
TOTAL CAPITAL
*Capital Expenditure has been converted from CAD to USD at 0.75
Note: Totals may be off due to rounding.
US$
92
102
78
37
309
9
2
31
352
Page 23 of 88
Environment and
Regulatory Approvals
Development of the Project will require approval from both
Provincial and Federal regulators. Jameson has prepared an
Environmental Assessment (EA) Application to meet the
comprehensive assessment requirements of both jurisdictions.
The EA Application was completed in April 2022 and submitted
to IAAC for review. It is anticipated that formal EA review will
commence in late 2023 involving a public comment period and
technical review by Regulators, Indigenous Nations groups and
other key stakeholders.
The duration of the assessment and review process is
dependent upon the extent of any subsequent Information
Requests and ongoing engagement with stakeholders.
Additional mine permits must be acquired by the Company
before construction can commence.
Indigenous Nations and
Community Engagement
Crown Mountain is located on lands within ʔakanuxunikJ
ʔamakʔis in the East Kootenay region of south-east British
Columbia, Canada. These are the unceded ancestral lands of
Yaq̓it ʔa·knuqⱡi ‘it First Nation over which it declares and
exercises its inherent aboriginal rights and title.
The lands are also part of the shared territories of the other
Ktunaxa nations: ?Aq̓am First Nation, ʔakisq̓nuk First Nation
Jameson Resources Limited | Annual Report 2022-23
and Yaq̓an Nu?kiy First Nation and the Secwepemc (Shuswap),
the Blackfoot Confederacy: Kainai (Blood), Piikani and Siksika;
Stoney Nakoda: Bearspaw, Chiniki, and GoodStoney; Tsuut’ina
Nation; and Métis citizens.
Jameson has undertaken extensive engagement with all of
these Indigenous Nations during planning of the Project and in
development of the EA and is seeking to undertake ongoing
engagement, close cooperation and open communication as
the Project moves forward.
The Company continues regular engagement with the local
governments (Councils, Mayors) of all the nearby towns
including Sparwood, Elkford, Fernie, the Regional District of
East Kootenay and the District of Crowsnest Pass located across
the Provincial border in Alberta. Through the EA development
process, Jameson has also had discussions with various non-
and
governmental organisations,
recreational clubs regarding their specific issues and concerns.
community
groups
Operating Costs
The mine operating cost estimate was developed in the BFS of
July 2020 to consider all site-based aspects of the mining
operation, (including coal processing, coal and waste loading
road
and haulage,
maintenance, water management, reclamation and site
administration) as well as all off-site costs (including rail and
port charges, marketing, royalties and corporate overhead
costs).
topsoil salvage and
replacement,
The total operating costs per product tonne from the BFS and
Yield Optimisation Study are summarised in Table 6 below:
Table 6 Total operating costs per product tonne from the BFS and Yield Optimisation Study
FOB Operating Cost* (USD)
Unit
BFS Jul-20
Yield Optimisation Study Aug-21
ROM Strip Ratio
Clean Coal Strip Ratio
Operating Costs – clean coal
Waste
ROM Coal Production
Preparation Plant
Clean Coal Handling
Reclamation
Minor Equipment Operating Costs
Free on Rail (FOR)
Marketing and Corporate
Administration
Rail and Port Charges
Royalty
Free on Board (‘FOB’) Cost
BCM:ROM tonne
BCM:t clean coal
4.7:1
10.3:1
USD/t
USD/t
USD/t
USD/t
USD/t
USD/t
USD/t
USD/t
USD/t
USD/t
USD/t
USD/t
31.94
6.77
10.02
2.34
0.14
1.00
52.22
1.01
5.90
29.25
4.79
93.17
*Operating costs have been converted from CAD to USD at 0.75
4.7:1
9.5:1
29.48
6.25
9.25
2.16
0.13
0.92
48.19
1.01
5.45
29.25
5.51
89.41
Page 24 of 88
Jameson Resources Limited | Annual Report 2022-23
Economic Outcomes
The key economic outcomes are as follows, and summarised in Table 7 below:
Table 7 Crown Mountain Project Key Economic Outcomes
Outcome*
Unit
Bankable Feasibility Study
(July 2020)
Yield Optimisation Study
(July 2021)
Total ROM Coal Mined
Mt ROM
Mine Life
Years
Average ROM Strip Ratio
bcm: ROM t
57.5
15
4.7
LOM Processing Yield
%
48. 8%
LOM Average Annual Exports
Mtpa
Total Clean Coal Production
Mt
Clean Coal Strip Ratio
Pre-production Capex**
Cash Cost
(FOB Vancouver)
Low Volatile Premium Hard
Coking Coal Benchmark
NPV(10) (Pre-tax)
NPV(10) (Post-tax)
IRR (Pre-tax)
IRR (Post-tax)
Net Cashflow (Pre-tax)
Net Cashflow (Post-tax)
bcm:
clean coal t
US$M
US$/t
US/t
US$M
US$M
%
%
US$m
US$m
1.8
26.27
10.29
309
$93.17
165
$376 M
$217 M
36.4%
27.2%
$1,029 M
$652 M
* Operating costs and capital expenditure have been converted from CAD to USD at 0.75
**Excludes Contingency, Owners Costs, Reclamation Security
57.5
15
4.7
52.9%
1.96
28.46
9.49
309
$89.41
165
$469 M
$276 M
40.2%
30.2%
$1,261 M
$797 M
Page 25 of 88
Investment Agreement with Bathurst Resources Limited
Jameson Resources Limited | Annual Report 2022-23
The Investment Agreement entered into between Jameson and
Bathurst in July 2018 provides Bathurst (through its wholly
owned Canadian subsidiary) options for investing in NWP and
provide funding for Crown Mountain costs. Bathurst invested
C$4 million in NWP for an 8 per cent common ownership
interest to sole fund the 2018 summer exploration program
and exercised Option One, investing an additional C$7.5 million
in September 2019 to sole fund the Bankable Feasibility Study
(BFS), increasing their common ownership interest in NWP to
20 percent.
The agreement also provides for:
•
up to a C$5million Advance of the total C$110,000,000
Tranche Two Option at Bathurst’s discretion to provide
funding towards pre-construction activities
• With the completion of the BFS and once the required
permits have been issued, Bathurst has a Tranche Two
option at their discretion, to sole fund the first C$110
million of construction costs, less any Tranche Two
Advances (C$2.6m to date), in the form of cash, which is
anticipated to represent the cash component of a project
financing package. Upon fully funding all tranches, which
total C$121.5 million, Crown Mountain will be a 50/50
joint venture between Jameson and Bathurst.
During the 2020 financial year, Bathurst provided C$2.6 million
for pre-construction activities, including completion of the BFS
and work undertaken on the EA Application as part of the
Advance to the Tranche Two Option, resulting in an additional
2.2% in Class B Preference shares.
Bathurst advised in 2020 that they will no longer exercise their
discretion and use the remaining C$2.4 million of the Option
Two Advance facility for sole funding of the Project costs.
Accordingly, Jameson and Bathurst have and will continue to
pro rata contribute the Project related costs in accordance with
their common ownership interests of 80:20 in NWP. Jameson
undertook an equity raising in November 2021 to ensure
Jameson can pay its share of Project related costs for the EA
Application, BFS optimisation work and other NWP costs to be
incurred during the 2022 financial year.
An additional equity raising will be required to be undertaken
in the December 2022 half, to fund Jameson’s 80% interest for
Crown Mountain Project costs for the near term to enable
continued progress of environmental approval process, further
ongoing engagement with Project stakeholders and related
administrative costs.
Page 26 of 88
Dunlevy
Ownership: 100% Dunlevy Energy Inc
Commodity: Steelmaking Coal
Location: Peace River, British Columbia
Jameson holds a 100% interest in the Dunlevy Project located
in the Peace River coal field district of North-East British
Columbia.
The Peace River coal field is estimated to have mineable
resources of over 1 billion tonnes of export quality coal (BC
Ministry of Energy and Mines). Production from the Peace
River coal field has included some of Canada’s major coking
coal and PCI mines – Willow Creek, Brule, Wolverine and Trend
– that are located along strike from the Project area.
Dunlevy is in a well-developed area where several major mines
and mining prospects are located, and is 90km from Fort St.
John, a regional commercial centre. All weather roads link
Dunlevy to Fort St. John and Chetwynd, where Canadian
National Railway’s track can be accessed. The rail provides
shipping options from each the three deep water ports on the
west coast of Vancouver.
There is also potential to reduce transportation costs by
utilising the large man-made Williston Lake bordering the
property to transport coal by barge to rail access.
Jameson executed a small drilling program at Dunlevy in the
summer of 2014.
Dunlevy’s coal licenses are in good standing with the Province.
Due to its early stage, no compliant coal resources have been
determined.
Dunlevy consists of 2 approved coal exploration licenses as
shown in Table 8 Dunlevy Coal License Summary Table below:
Table 8 Dunlevy Coal License Summary Table
Jameson Resources Limited | Annual Report 2022-23
Cancellation of 5 pending exploration license applications by
the British Columbian government in 2015 limited the potential
scale of the Dunlevy Project should it be ultimately developed.
Jameson determined that it was not in the Company’s best
interest to proceed any further with Dunlevy at that time,
choosing instead to devote available funds to Crown Mountain.
As Jameson has not completed any work on Dunlevy during the
past 5 years, please refer to the 2015 Annual Report for
information on Project details.
Annual rent on the exploration licenses has been paid and the
Project remains in good standing.
Based upon the discontinuation of activities on Dunlevy, the
Company elected in 2016 to write down the Project value to
nil.
Page 27 of 88
Jameson Resources Limited | Annual Report 2022-23
Sustainability – the four pillars1
Jameson believes that the United Nations Sustainable Development Goals (SDGs) provide a roadmap that
enable corporations to align their goals with the long term goals of society, and have chosen to adopt, and are
in the process of implementing, a four pillar approach to measuring performance – Principles of Governance,
Planet, People and Prosperity as outlined below.
Principles of
Governance
By operating in an open and transparent manner
through all stakeholder engagement and being
responsible, we strive to grow sustainably and
deliver long term value creation. We are focused
on managing our risks and continuous
improvement.
Planet
People
We are committed to developing the Crown
Mountain Hard Coking Coal Project and any other
future projects by being responsible, sustainable
and mindful in our approach to the natural
environment.
People relates to both our human and social
capital - our people are central to achieving
sustainable outcomes, through opportunities to
grow and by being inclusive we will build and
retain talent; and by working together in an open
and transparent manner, we seek to be a valued
community partner.
Prosperity
We are committed to being a valued community
partner through being responsible and addressing,
in an open and transparent manner, our social
license to operate that will lead to inclusive and
sustainable outcomes resulting in long term value
creation.
1 – Measuring Stakeholder Capitalism Towards Common Metrics and Consistent Reporting
of Sustainable Value Creation, September 2020
AFY24
Priorities
Page 28 of 88
Jameson Resources Limited | Annual Report 2022-23
Corporate Governance and
Risk Management
Jameson’s 2022 Corporate Governance Statement is available on Jameson’s website and is also released to the ASX as part of our
annual reporting.
The Corporate Governance Statement adopted by the Board reflects the Board’s endorsement and adoption of the
recommendations contained in the ASX Corporate Governance Council’s Principles and Recommendations.
Risk management is fundamental to maximising the value of our business and informing Jameson’s strategic planning and
establishment of key milestones and deliverables.
We believe that effective risk management enables us to identify priorities, allocate resources, demonstrate due diligence in
discharging legal and regulatory obligations, and meet the standards and expectations of our stakeholders.
Jameson’s risk management approach is a structured process to identify potential threats to the success of the business, and
includes defining our risk appetite and strategy for eliminating or minimising the impact of identified risks.
We particularly focus on strategic and material risks and Jameson is committed to ensuring that risk management is regarded as
an essential element in our management processes with linkages to every aspect of our business including progression of the
development of the Crown Mountain Hard Coking Coal Project, relationships with key stakeholders and suppliers and our treasury
and capital management activities.
Jameson’s Annual Report contains detailed discussion on a number of risks including Project risks. Set out below is a high level
summary of our material risks and how we manage them:
Protecting the Health, Safety and Wellbeing of our People
Jameson’s core values call out responsibility.
Responsibility for taking care of our own and each
other’s health and safety. We strive to ensure a
culture that promotes a safe workplace so that
everyone goes home safe every day.
• While safety risk is not currently our most significant risk we are
cognisant of the fact that mining operations by their very nature
carry associated health and safety risks. We plan to implement a
robust work-place health and
system ahead of
commencement of site works and mining activities. This will include
identifying critical safety risks, education programs and leaders who
embed a safety culture within our business.
safety
Managing Cyber Security Risks
loss of confidentiality,
Cyber threats are a constant challenge with risks
to the
integrity, or
availability of information, data, or information
required to operate the business.
•
Jameson IT management is outsourced. The outsourced provider
has systems in place to manage cyber-security risk and uses the
Australian Cyber-Security Centre’s Essential 8 approach as the
framework to support mitigating this risk.
Respecting and Consulting with Stakeholders on The Crown Mountain Project
Jameson acknowledges the many Indigenous
Nations, Métis and Inuit who have lived in and
cared for these lands for generations. We are
grateful for the traditional Knowledge Keepers
and Elders who are still with us today, those who
have gone before us and emerging leaders. We
make this acknowledgement as an act of
reconciliation and gratitude to those whose
territory where our Project is located.
• We believe in building long-term and meaningful relationships with
our many stakeholders. This requires listening to their concerns and
working constructively on solutions
•
Jameson actively engages and involves Indigenous Nations in the
Crown Mountain Project’s assessment including communicating the
potential impacts and benefits of the Project
• Karyn Lewis, experienced regulatory affairs expert joined the NWP
Project Team as Manager – Regulatory Affairs and works closely
with all stakeholders to educate and consult on the Crown
Mountain Project.
Page 29 of 88
Jameson Resources Limited | Annual Report 2022-23
Financial Sustainability Risk
Jameson is currently funding 80% of the Crown
Mountain Project costs, given our Joint Venture
partner Bathurst Resources Limited exercised
their discretion to no longer fund 100% of
cashcalls under the Tranche Two Cash Advance
Option. Jameson will be required to pro-rata fund
its 80% share of costs until Final Investment
Decision where Bathurst has the option to
exercise its discretion in relation to the Tranche
Two Option for C$107.4m remaining, that will
increase their shareholding to 50% if exercised.
Regulatory Approval Risk
There is a risk of changes to Government policy in
relation to environmental assessment or Climate
Change policy and that change could negatively
impact on the ability to secure approval for
development of the Project
Climate Change Risk
Jameson’s objective is to be the next generation
of steel making coal. It is committed to playing its
part in building a more sustainable world for the
future generations. How we go about this
requires focus, investment and close contact with
our many stakeholders. We believe that Jameson
can play its part in the transition towards a
sustainable society through careful planning for
Crown Mountain operations, once all approvals
have been received. A key part of the work we are
undertaking when planning the mine operations
is to explore ways to operate the mine sustainably
•
•
•
•
Increasing regulatory requirements under the EA Application
framework have resulted in a longer time than anticipated to
prepare and lodge the EA Application which has resulted in the
potential date for FID also being later than originally thought. This,
together with the need for Jameson to fund 80% of costs until such
time as Bathurst exercises its discretion in relation to the Tranche
Two Option, means Jameson will need to raise additional funds to
support the ongoing approval process and remain a going concern
Jameson has a long-standing and supportive shareholder base with
which we remain in constant contact. Jameson continually reviews
its funding requirements and plans
Jameson will continue to engage with existing shareholders and
potential investors and project financiers to ensure the advanced
position of the project and the environmental benefits of the
project compared to other steelmaking coal projects are well
understood.
Jameson is actively engaged with Federal and Provincial regulators
and policymakers to ensure that the potential regulatory changes
and the impact on project development are well understood. As
part of this strategy, the Company is keen to highlight the
comparative GHG benefits of the Project from a production and
product value-in-use.
• The Crown Mountain Project is in the EA Approval phase. It is
essential we understand the potential baseline impact on the
climate from our operations, when commenced. Work is underway
to assess the baseline and determine realistic and measurable
strategies that could serve to reduce the carbon footprint of our
Crown Mountain operations
• Specific risks to manage when CMP becomes operational include:
o
Impact of more frequent flooding or weather impacts on mining
operations
o use of heavy equipment on site to haul coal to the rail load out,
rail to the port and ship to customers
o societal expectations and potential negative views of Jameson’s
coal mining asset.
Acceleration of Transition Away from Coal Could Impact the Metallurgical Coal Price
The Crown Mountain Hard Coking Coal Project is
metallurgical coal which is used in blast furnaces
to make steel. Jameson acknowledges the
transition away from thermal coal to renewable
that
energy sources but also
alternative technologies for steelmaking could
become economical earlier, which
could
potentially hasten the transition away from blast
furnaces, reducing demand for metallurgical coal
recognises
• The risk also presents an opportunity for Jameson as any imbalance
in the coking coal market could lead to prolonged capacity pressure
in both the coking coal and coke markets, leading to elevated prices
• The Company is continuing to create relationships with leading
global steelmakers to ensure that it is informed of current status of
steel industry decarbonisation strategies and the role for premium
hard coking coal in reducing industry emissions
Page 30 of 88
Jameson Resources Limited | Annual Report 2022-23
Acceleration of Transition Away from Coal Could Impact the Metallurgical Coal Price
at a faster rate. This could impact the longer term
metallurgical coal price.
• As part of Jameson’s risk management approach it will give
consideration to the effect of longer-term coal prices and as part of
our scenario planning, actively evaluate the market for conditions
that could impact various scenarios and the Project.
Directors’ Report
Experienced, effective and
diverse leadership
Page 31 of 88
Jameson Resources Limited | Annual Report 2022-23
Directors’ Report
Experienced, effective and
diverse leadership
The Directors of Jameson Resources Limited
(“Jameson” or “the Company”) are pleased
to submit the Annual Financial Report of the
Company and
the
financial year ended 30 June 2023.
its subsidiaries
for
Directors
Company Secretary
Board Meetings
Remuneration Report
Lead Auditor’s Independence Declaration
Financial Statements and Notes
Directors’ Declaration
Independent Auditor’s Report
Shareholder Information
Schedule of Mineral Tenements
Corporate Directory
33
35
36
39
46
47
80
81
85
87
88
Page 32 of 88
Directors
Directors’ Report
Directors
Jameson Resources Limited | Annual Report 2022-23
Nicole Hollows
Independent, Non-Executive Chairman
Michael Gray
Managing Director
Bachelor of Business – Accounting
Graduate Diploma in Advanced Accounting (Distinction)
Chartered Accountant
Fellow Australian Institute of Company Directors
Graduate Diploma in Company Secretarial Practice
Member, Chief Executive Women
Bachelor of Engineering (Civil)
Master of Business Administration
Graduate Australian Institute of Company Directors
Appointed
15 March 2020
Subsidiary Responsibilities
Director, NWP Coal Canada Limited
Director, Dunlevy Energy Inc.
Committee Responsibilities
Chairman, Nomination and Remuneration Committee
Member, Audit and Risk Committee (Chairman up to January 2021)
Experience
Ms Hollows has over 21 years’ experience in the resources sector
and has been responsible for exploration, evaluation, financing,
development and operations of steelmaking coal mines. Her
experience spans operational management, strategy, accounting
and finance, mergers and acquisitions, risk management and
corporate governance. Ms Hollows previous roles include Chief
Executive Office/Managing Director of Macarthur Coal Limited
(acquired by Peabody Energy), Managing Director of AMCI
Australia and Southeast Asia, and Chief Executive Officer of
Sunwater Limited.
Ms Hollows is a Non-Executive director of Downer EDI Limited,
Qube Holdings Limited and Chief Executive Women. She was
previously a member of the advisory committee member of the
Salvation Army Queensland Advisory Council.
Directorships of Other Listed Entities
Downer EDI Limited (ASX: (DOW) 19 June 2018 to current)
QUBE Holdings Limited (ASX: QUB) (19 October 2020 to current)
Appointed
1 March 2021
Subsidiary Responsibilities
President, NWP Coal Canada Limited
Committee Responsibilities
Standing Invitee to all Committees.
Experience
development,
Mr. Gray is an experienced resource executive with over 30
years’ experience in resource and infrastructure development.
Mr. Gray’s experience in permitting, capital markets, financing
implementation of product
including development and
marketing
stakeholder
customer
and
engagement, and mine construction and operations bode well
for Jameson’s strategy of becoming an independent, growth-
oriented steelmaking coal developer focused on delivering
sustainable outcomes. Mr. Gray was the Chief Executive Officer
responsible for the successful development and operations of
the Middlemount Coal Project that was acquired by Peabody as
part of their acquisition of Macarthur Coal and more recently has
industry
provided consulting advice within the resource
including involvement in the development of the Bluff PCI
project in Central Queensland and the successful acquisition of
the Colton Coal Project.
Directorships of Other Listed Entities
Nil
Directorships of Listed Entities Held In Past 3 Years
Resource Generation Limited (ASX: RES) (30 November 2018 to
4 February 2022).
Location
Mr Gray is based in Brisbane.
Page 33 of 88
Location
Ms Hollows is based in Brisbane.
Directors (cont.)
Directors’ Report
Jameson Resources Limited | Annual Report 2022-23
Joel Nicholls
Independent, Non-Executive Director
Steve van Barneveld
Independent, Non-Executive Director
Bachelor of Commerce
Chartered Accountant
Graduate Diploma Mineral Exploration Geoscience
Bachelor of Mineral Technologies (Hons 1)
Appointed
15 September 2016
Subsidiary Responsibilities
Director, NWP Coal Canada Limited
Director, Dunlevy Energy Inc.
Committee Responsibilities
Chairman Audit, Risk and Sustainability Committee
Member Nomination and Remuneration Committee
Experience
Mr Nicholls has over 16 years financial and technical
experience in the resources industry. He formerly worked
for PricewaterhouseCoopers
in Transaction Services,
focused on mergers and acquisitions with buy side and sell
side due diligence across a broad range of industries. Mr
Nicholls runs a private resource fund and has experience in
analysing and investing in a wide selection of commodities
across multiple jurisdictions, from early-stage exploration
through to production. Mr Nicholls is skilled in project
identification, and technical and economic evaluation.
Directorships of Other Listed Entities
Nil.
Location
Mr Nicholls is based in Melbourne.
Appointed
21 February 2014
Subsidiary Responsibilities
Director, NWP Coal Canada Limited
Director, Dunlevy Energy Inc.
Committee Responsibilities
Member, Audit, Risk and Sustainability Committee
Member Nomination and Remuneration Committee
Experience
Mr van Barneveld has over 30 years of experience in the
mining services sector, a significant portion of which has
been spent with Sedgman Pty Limited, a
leading
international designer and builder of coal handling and
processing plants. Mr van Barneveld, commencing as a
process engineer, has held senior executive positions
within Sedgman, overseeing a period of significant growth
and international expansion. He has extensive experience
in asset development, design, construction, and
operations management.
Directorships of Other Listed Entities
Nil
Location
Mr van Barneveld is based in Perth.
Page 34 of 88
Company Secretary
Directors’ Report
Jameson Resources Limited | Annual Report 2022-23
Lisa Dalton
Company Secretary
Bachelor Applied Science (Medial Laboratory Science)
Masters Applied Science (Medical Laboratory Science)
Bachelor of Law (First Class Honours)
Fellow Australian Institute of Company Directors
Fellow Governance institute of Australia
Appointed
8 October 2020
Subsidiary Responsibilities
Secretary, NWP Coal Canada Limited
Secretary, Dunlevy Energy Inc.
Experience
Lisa is an experienced Director, Chief Executive Officer,
Senior Executive and Company Secretary having worked in a
range of industries including healthcare, medical, water
resources, energy, manufacturing, childcare, energy, mining
and construction sectors. Lisa has experience in leading
strategy development and
teams
implementation, governance, risk management, internal
cultural
audit,
improvement,
human
communication,
relations and program
management. She has strong capability in capital raising and
mergers and acquisitions having responded to numerous
take-over approaches and supported significant capital
raisings for growth.
resources,
stakeholder
responsible
for
Lisa is currently Chairman of Second Skin Pty Ltd, a Non-
Executive Director of Healthia Limited (ASX: HLA) and the
Queensland Department of Regional Development,
Manufacturing and Water and is Deputy Chair of the
Advisory Council of Marist College Ashgrove. She is also
Company Secretary of PWR Holdings Limited (ASX: PWH).
Location
Ms Dalton is based in Brisbane.
The Company Secretary is appointed by
the Board in accordance with the
Constitution and all Directors have right
access to the Company Secretary.
The Company Secretary is charged with
facilitating the Company’s corporate
governance processes and so holds
primary responsibility for ensuring that
the Board processes and procedures run
efficiently and effectively. The Company
Secretary is accountable to the Board,
through the Chairman, on all governance
matters and reports directly to the
Chairman as the representative of the
Board.
Page 35 of 88
Directors’ Report
Jameson Resources Limited | Annual Report 2022-23
Board Meetings
Our Corporate
Structure
Principal
Activities
Review of
Operations
During the Reporting Period, the Board held 19 Board meetings. Attendance at those
meetings is summarised below:
Table 9 Directors' Meetings
Name
Board Meetings
Audit and Risk
Committee
Meetings
Nomination and
Remuneration
Committee
Meetings
A1
19
19
19
19
B2
19
19
19
19
Nicole Hollows
Steve van Barneveld
Joel Nicholls
Michael Gray3
1. Meetings held and director able to attend
2. Meetings attended
3. Michael Gray has a standing invite to attend Committee meetings but is not a member
A1
2
2
2
-
A1
3
3
3
-
B2
3
3
3
-
B2
2
2
2
-
Jameson Resources Limited is a public company listed on the ASX (Code: JAL) and is
incorporated in Western Australia. The Company has a 77.94% interest in NWP Coal
Canada Limited (NWP) which holds a 90% interest in the Crown Mountain Hard Coking
Coal Project and a 100% direct interest in the Dunlevy Coal Project, both located in
British Columbia, Canada. In October 2019, a subsidiary of Bathurst Resources Limited
(ASX: BRL) (Bathurst or BRL) acquired a 20% interest in NWP in common shares by
exercising its Tranche One Option and an additional 2.2% in Class B Preference shares,
exercising its Tranche Two Advance Option of C$2.6 million. Bathurst holds a Tranche
Two Option, at their discretion, to increase their ownership interest to 50%, subject
to certain milestones and additional payments.
Jameson Resources Limited and its subsidiaries, NWP and Dunlevy Energy Inc. are
collectively referred to as Jameson, or the Group, as the context requires.
The principal activity of the Group during the financial year was advancing the
Company’s Crown Mountain Hard Coking Coal Project (“Crown Mountain”) through
the evaluation phase which has now commenced into the permitting phase. All
technical assessments for the Environmental Assessment Application were completed
in June 2021 and the EA Application was lodged with IAAC in April 2022.
Management also evaluates other coal opportunities that present themselves from
time-to-time.
There were no significant changes in the nature of the Group’s principal activities
during the financial year
Please refer to pages 5 to 36 of the Annual Report for a detailed Review of Operations.
A high-level summary is provided below:
The past year has seen its share of highlights and challenges for Jameson Resources
Limited (JAL or the Company), resulting in the following key deliverables:
•
•
•
•
•
Execution of a one-of-a-kind Environmental Assessment Process and Consent
Agreement with Yaq̓it ʔa·knuqⱡi ‘it First Nation for the Crown Mountain Hard
Coking Coal Project
a strategic placement of $5 million (at 70% premium to previous share price) to
fund continued progress of Crown Mountain Environmental Assessment
Application
Based on substantial progress of the assessment and with the support of key
First Nations, the Impact Assessment Agency of Canada granted an extension to
the time limit for completion of the environmental assessment for the Project.
The Impact Assessment Agency of Canada provides feedback on the Crown
Mountain Draft Environmental Impact Study following Conformity Review
Consideration of a number of potential value-add acquisitive growth
opportunities whilst approvals for the Crown Mountain Project are being
progressed.
Page 36 of 88
Directors’ Report
Jameson Resources Limited | Annual Report 2022-23
Operating
Results
The loss, after tax, attributable to the Group for the financial year ended 30 June
2023, amounted to $1,921,508 (2022: loss of $909,006).
Dividend Paid or
Recommended
The Directors do not recommend the payment of a dividend in respect of the
financial year and no amount has been paid or declared by way of a dividend since
the start of the financial year to the date of this Report.
Significant
Changes in
State of Affairs
.
Other than as stated above, there were no significant changes in the state of affairs of
the Company during the financial year.
Subsequent
Events
No matters or circumstances have arisen since the year end which significantly
affected or may significantly affect the operations of the Group, the results of those
operations, or the state of affairs of the Group in future financial years.
Future
Developments
Environmental
Issues
Jameson is focusing its efforts on the development of the Crown Mountain Hard
Coking Coal Project in British Columbia, Canada and working with Bathurst Resources
Limited to advance its Environmental Assessment permitting and related activities.
In parallel with progress of the EA Application, management will seek to evaluate other
opportunities, predominantly focused on steelmaking coal, in developed nations (e.g.,
Canada and Australia).
Work on the Dunlevy Project has been suspended and will be reviewed periodically in
light of market conditions and company priorities. Management will also evaluate
other opportunities that may present themselves from time-to-time, both in coal and
other commodities.
Further details are contained in the “Our Assets” section of the Annual Report
commencing on page 16.
The Group’s operations are subject to significant environmental regulations in
Western Canada in respect of its mining exploration activities.
The Company is aware of its environmental obligations with regards to its exploration
and evaluation activities and ensures that it complies with all regulations when
carrying out any exploration and evaluation work.
The Directors of the Company are not aware of any breaches of environmental
regulations for the year covered by this report.
The Directors have considered the National Greenhouse and Energy Reporting Act
2007 (the NGER Act) which introduces a single national reporting framework for the
reporting and dissemination of information about the greenhouse gas emissions,
greenhouse gas projects, and energy use and production of corporations. At the
current stage of development, the Directors have determined that the NGER Act will
have no effect on the Company for the current or subsequent financial year. The
Directors will reassess this position as and when the need arises.
Indemnifying
Officers or
Auditor
In accordance with the constitution, except as may be prohibited by the Corporations
Act, 2001 every officer, auditor or agent of the Company shall be indemnified out of the
property of the Company against any liability incurred by him in his capacity as officer,
auditor or agent of the Company or any related corporation in respect of any act or
omission whatsoever and howsoever occurring or in defending any proceedings,
whether civil or criminal.
The Group has a Directors and Officers insurance policy in place.
Page 37 of 88
Directors’ Report
Jameson Resources Limited | Annual Report 2022-23
Proceedings
on behalf of
the Company
Auditor’s
Independence
Declaration
Non-Audit
Services
Unissued
Shares Under
Option
Interest in
Shares and
Options
No person has applied for leave of Court to bring proceedings on behalf of the Company
or to intervene in any proceedings to which the Company is a party for the purpose of
taking responsibility on behalf of the Company for all or any part of these proceedings.
The Company was not a party to any such proceedings during the year.
The lead auditor’s independence declaration for the year ended 30 June 2022 has been
received and can be found on page 48 of the annual report and forms part of this
Directors’ Report.
No non-audit services were provided by the Company’s auditors during the year.
At the date of this report unissued ordinary shares of the Company under option are:
Table 10 Unissued Shares Under Option
Number of Shares
Expiry Date
31 December 2023
31 December 2023
31 December 2024
31 December 2024
30 June 2025
31 December 2025
31 December 2025
During the year, no shares were issued upon the exercise of options.
Exercise Price
$0.50
$0.20
$0.30
$0.10
$0.40
$0.50
$0.10
1,200,000
500,000
500,000
1,400,000
500,000
1,000,000
1,440,000
The following relevant interests in shares and options of the Company or a related body
corporate were held by the directors as at the date of this report.
Table 11 Interest in shares, options
Name
Number of Shares
Number of Options
Nicole Hollows1
Steve van Barneveld2
Joel Nicholls3
Michael Gray4
1. 500,000 shares and 2,500,000 options are held by Nimami Pty Ltd
Continue reading text version or see original annual report in PDF format above