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.