The company said it had met the benchmarks for the development of the mine during the September quarter, including a significant JORC-compliant resource upgrade and a maiden measured resource and a preparation for submission of a replacement mining lease application over part of EPC 891.

“The company notes that during the September quarter reporting period there was significant decline in current thermal coal prices,” it said.

“Notwithstanding this decline, Bandanna notes that Wood Mackenzie, one of the world’s leading commodity analysts, predicts significant demand growth for the period from 2015-30, leading to increased thermal coal prices in the long term.

“Bandanna shares this view of long-term demand and remains fully committed to progressing development of the Springsure Creek project for first coal production in the second half of 2014.”

First production will coincide with the completion of Stage 1 of the Wiggins Island Coal Export Terminal (WICET), it said.

The financial close of WICET Stage 1 confirms Springsure Creek’s 14% shareholding and 4 million tonnes per annum capacity allocation.

The company has also executed port and rail infrastructure contracts to enable haulage and shipping of product coal.