Springsure Creek 'on track'

BANDANNA Energy is expecting to receive all regulatory approvals to start construction of its Springsure Creek longwall project in the September quarter of 2014.
Springsure Creek 'on track' Springsure Creek 'on track' Springsure Creek 'on track' Springsure Creek 'on track' Springsure Creek 'on track'

Drilling at Springsure Creek. Image courtesy of Bandanna Energy.

Blair Price

In an investor update presentation, Bandanna said the Bowen Basin project was on track to deliver first coal output in mid 2015, subject to approvals port construction and funding.

On the approvals front, the explorer has forecast Queensland government approval for its EIS in October and a subsequent mining lease approval in the March quarter.

The thermal coal project is initially targeting 5.5 million tonnes per annum of capacity. Development coal is expected to flow from mid-2015, while first longwall coal is expected in the second half of 2016. If the expansion to double output goes ahead, first coal from the second longwall is expected in 2020.

On the logistics front, Bandanna said the Wiggins Island Coal Export Terminal consortium had advised that shipping would probably start in April 2015.

While Bandanna had a cash position of about $120 million at the end of June, it is continuing possible joint venture discussions for Springsure Creek.

The explorer said the interested parties included Asian utilities, overseas mining companies and international investment houses.