The mining fleet is largely ready to restart contract operations when the industry returns to a stronger production demand which is expected to be during the first half of FY15, he told the company’s annual general meeting.

“Some works will be required to recode various electrical motors and enclosures as these are now falling beyond their windows of compliance,” he said.

“A small core of key management staff will progress fund raising, development of the Wongai project and preservation of value in the mining fleet.”

The board has waived its right to receive fees and staff are working reduced hours at lower remuneration.

Redundancy payments made during the past year reflect a one-off cost that will not be repeated in future years, Cohrane said.

Bounty continues to develop the Wongai hard coking coal project in Queensland.

In February 2014 Bounty successfully completed the first stage of the farm in agreement that was signed on September 13, 2013. The company now has the right to 5% of Wongai.