Since completing the project’s definitive feasibility study, Bandanna continued detailed work to optimise planned coal production from the project.
Independent external mine planning has confirmed that a single longwall at Springsure Creek is now forecast to produce more than 7 million tonnes per annum in line with similar experience at modern high production longwall projects both within Australia and overseas.
The forecast improvement in longwall utilisation, and the consequent increase in forecast production, has lowered the project’s estimated FOB operating costs (excluding royalties) to $59.80/tonne from $65.61/t.
Following a competitive tendering process on 29 January 2014 Bandanna announced that, in order to further optimise the design and capital cost schedule for the project, it had appointed Brisbane-based global, diversified engineering and project management company Ausenco to provide project management advice, engineering support and procurement services.
The services will deliver an engineered budget, schedule and execution plan for the Project by 30 June 2014.
At completion of the services, Bandanna Energy expects to have in hand competitively tendered and priced packages for all development services aligned with the expected timing for the grant of ML70486.
Deliverable under the agreement with Ausenco will be an enhanced definitive capital value for the Springsure Creek Coal Project as well as providing plans for project management and project execution.