Market to chip in for Newpac longwall

RESOURCE Pacific will go to its shareholders next month seeking approval to raise $A60 million through an ordinary shares issue to finance a longwall at its Newpac operation in New South Wales.
Market to chip in for Newpac longwall Market to chip in for Newpac longwall Market to chip in for Newpac longwall Market to chip in for Newpac longwall Market to chip in for Newpac longwall

Newpac No. 1 colliery

Angie Tomlinson

If shareholders approve the placement on July 4 and subsequent funds are raised, the company will proceed with its expanded longwall case for the mine. Additional funds of $A115 million will be raised through debt and equity.

The mine is currently a bord and pillar producing about 900,000 tonnes per annum. The new longwall is planned for 2006 start-up.

The mine has a 240 million tonne resource base, with 74Mt at reserve status. Longwall panels are expected to be 250m wide and will range in length from 1.2-2km.

Five year haulage contracts have been signed with Pacific National and Queensland Rail to haul increased production when the longwall comes on-stream.

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