While Bathurst is awaiting final approval for the Escarpment mine, which has long targeted 500,000 tonnes per annum of export coking coal with a ramp up option to 1Mtpa, the coal market is continuing to sink.

“Over the past month, the international price for coking coal has dropped from its 2012 high of over $US300 per tonne to a current spot of about $US120 per tonne,” Bathurst said.

“Bathurst has consistently stated its expected operating costs at Escarpment to range from about $120/tonne on start-up, reducing to less than $90 per tonne as production ramps up to about 1 million tonnes per annum.

“Bathurst is committed to commencing establishment of the Escarpment Mine as soon as authority is granted, but will defer ramping-up production until such time as the market is deemed to be recovering.”

Under this direction, Bathurst will concentrate on its three small, domestic-market serving coal mines.

As for its export-orientated Escarpment project, the company’s focus will change to securing the site, establishing water management dams and stockpile areas, and mining sufficient coal to “complete market qualification for coking coal supply to steel producers, principally in Japan and India”

“Sadly, this means that about 29 jobs will become redundant, but it will ensure that the company preserves cash to continue its operating and development activity,” Bathurst said.

The Escarpment project was a key plank of the company’s wider Buller project in the Buller coking coal basin.

Bathurst chairman Craig Munro is due to resign on March 31. He will be succeeded by existing board member David Frow, with the company deciding to keep the board smaller by one less member.

The company also agreed to cut its board and executive pay by “up to 30%”

Bathurst’s shares on the New Zealand bourse sank to a nine-month low following the announcement while its ASX-listed shares were down 4.4c, or more than 31%, to 9.6c by 2.35pm (AEST) yesterday.