Bandanna holds head high despite Abbot Point blow

BANDANNA Energy will not let the knock back from securing preferred developer status at the Abbot Point expansion dampen its efforts to become a significant mine producer in Queensland.
Bandanna holds head high despite Abbot Point blow Bandanna holds head high despite Abbot Point blow Bandanna holds head high despite Abbot Point blow Bandanna holds head high despite Abbot Point blow Bandanna holds head high despite Abbot Point blow

3D model of WICET stage one.

Lauren Barrett

The coal developer reminded the market it had valuable port capacity at the planned $A2 billion Wiggins Island Coal Export Terminal.

Issuing a port development update to the market on Friday, the company said while it had missed out on gaining preferred respondent status for the T4-T9 expansion, it would not have any impact on its WICET allocation.

“Yesterday’s ASX release concerning the South Galilee coal project joint venture’s failure to gain preferred status (in which Bandanna has a 50% interest) for 15 million tonnes per annum of port allocation at Abbot Point, has NO bearing on the Wiggins Island, 4 Mtpa WICET allocation of Bandanna,” it said.

“Planned expansion of Abbot Point and the EOI sought for a 15 Mtpa coal export allocation in that proposed T4-T9 expansion relates solely to optionality for future port solutions by the South Galilee Project JV in the Galilee Basin and NOT to Bandanna’s major Bowen Basin projects.”

The company said it remained fully funded to meet all of its obligation to the WICET port, following a capital raising in August on top of $130 million cash.

Bandanna is just one of a handful of companies who have a stake in Stage 1 of WICET, with first shipments from the terminal expected in 2014.

Despite the rejection from Abbot Point, Bandanna said the Northern Queensland Bulk Ports had invited the South Galilee coal project JV in to early discussions to explore other options for securing port capacity at Abbot Point.

Meanwhile, the company said exploration and resource delineation drilling for Bandanna WICET Stage 1 source mines in the Bowen Basin remained on target, with drilling continuing in the Springsure Creek, Arcturus and Dingo West tenements.

Its Springsure Creek thermal coal project is targeting two longwall operations for 11Mtpa while its Arcturus thermal coal project is targeting 5Mpta of product coal through open cut and underground mining in the later years, with first coal possible in 2014.

Bandanna also said it expected to announce the appointment of a new managing director for the company after recently announcing it was looking to replace its current MD Ray Shaw.

Shaw was appointed to the board of Enterprise Energy as executive director and chairman in May 2007 and oversaw the merger and relisting of the company as Bandanna Energy in October 2008, from which time he has held the position of managing director.

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