“It seems incredible to me, when I look back and realise that only a year ago we were finalising the prospectus for the initial public offering, and that tomorrow marks the first anniversary of the appointment of the three non-executive directors,” chairman Carol Holley said.
Following the IPO, Resource Pacific raised $A180 million which enabled them to embark on an ambitious project to expand current bord and pillar operations to a four million tonne per annum longwall.
“Paul Jury, our managing director, had the vision to recognise the potential of the Newpac mine, and the drive to ensure its acquisition and early development,” Holley said.
“He has certainly been the driving force behind its current development plans.”
When the new longwall commences in January 2007, managing director Paul Jury expects that while production will rise, costs will fall by about $A20/t.
Resource Pacific has awarded the three major contracts to deliver the expanded mine. Nepean Conveyors were selected under an $A18.2 million contract to supply and install a large capacity underground conveyor system.
New longwall equipment will be supplied by DBT for $A69.4 million and refurbishment of the Ravensworth Coal Preparation Plant and construction of new ROM and product coal stockpiles will be undertaken by Roche Mining for $A71.9 million.