With a difficult year behind it, Bounty is now looking at broadening its scope beyond its thin seam mining expertise into other underground mining activities, including gateroad development at longwall mines.

 

Bounty said it was currently pursuing several opportunities for commencement in the first half of calendar year 2008.

 

One new underground mining project in New South Wales is at the contract planning stage, and another project in Queensland is at a similar stage. The company said both of these projects will require additional mining equipment.

 

The company has already raised $A6.1 million in a convertible notes issue, with the funds enabling Bounty to undertake its first new project.

 

"In addition to these projects the company has responded to opportunities to provide labour and expertise in mine preparation and development, and will seek to develop this business as a revenue stream which involves little capital expenditure," Bounty said.

 

The first of these contracts is planned to commence within the next two weeks.

 

Bounty's confidence remains steadfast in the Aquila project, backing itself through investment in continuous haulage at the site. Work has commenced to assemble a Stamler system.

 

Bounty said other opportunities for continuous operations are also planned for 2008.

 

The company is also pursuing other "resource ownership and mining opportunities" in New Zealand and Australia. It said it had yet to finalise the commercial terms for the Tatu mine in central North Island, and was investigating other "invitations".

 

This year Bounty will continue to strive to reduce overhead costs, identifying a change in work practices that it said will result in a monthly reduction in labour costs of up to 10% by the end of this quarter. This reduction will be added to the 13% drop already achieved since January.