Bandanna managing director Michael Gray said: “The size of the resource and the long production life it provides, the high coal quality, relatively low capital and operating cost structure, proximity to existing rail lines and secure port capacity, and advanced state of approvals ensure that Springsure Creek is differentiated from the range of operating and greenfield projects currently on the market.”

“It is clear from our discussions with potential investors that they are concerned about regulatory uncertainty in Australia.

“If Bandanna Energy can continue to positively progress the EIS [environmental impact statement] and other regulatory approvals for the Springsure Creek Project, it should further highlight the attractiveness of investment in this project.”

It is possible that the finalisation of investment may also take longer than originally proposed due to the current coal market conditions and the number of other coal assets currently being offered for sale in Australia, the company said in a statement.

“Discussions with potential Chinese and Korean investors are continuing,” it said.

“Notwithstanding this, Bandanna Energy believes that its Springsure Creek Project is well positioned to attract investors looking for secure long-term access to high-quality coal, as compared with the range of other Australian and international assets currently for sale.”

From the review of the submissions made and consultations undertaken so far, Bandanna Energy is aiming for the

EIS process to be finalised at the end of the September quarter.

The separate impact assessment process for the infrastructure corridor and rail load-out has also begun.

Mining lease applications for that infrastructure were lodged in mid-May. Bandanna Energy is liaising with government over the form of impact assessment process that will support those applications.

The start of production and exports from the Springsure Creek Project are subject to a number of factors, particularly timing of regulatory approvals, project funding and completion of construction of Wiggins Island Stage 1.

Based on it securing regulatory approvals and funding by the end of the year, production from the project is forecast to start in mid-2015.