Bandanna finances flagship

BANDANNA Energy has accepted a $A63.7 million secured bank guarantee for the purchase of additional land and equipment at its Springsure Creek coal project in Queensland’s Bowen Basin.
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Courtesy of Bandanna Energy

Justin Niessner

Springsure Creek is the Brisbane-based explorer’s flagship project and is targeting two longwall operations for 11 million tonnes per annum.

The arrangement with Credit Suisse is intended to enhance project feasibility and progress toward a schedule which could produce first coal in the second half of 2014.

Bandanna managing director Michael Gray said financing with the Swiss multinational was a “significant opportunity” to maintain momentum at Springsure Creek.

“This facility and the significant progress made on the definitive feasibility study process, ensures that Bandanna is positioned to become Australia’s next coal producer,” he said.

Springsure Creek experienced a setback last month when the mining registrar rejected a lease application which included technical errors and met resistance from community members.

Bandanna reports that progress with a downsized mining lease is ongoing as consultations with the community, the Central Highlands Regional Council, the state government and Springsure Creek stakeholders unfold.

Drilling onsite has recently produced three 200mm diameter cored holes which are expected to provide essential information for facility design and product specification. The cores indicate a 3.35m thick coal seam which will deliver 150kg of sample material for technical analysis.

Other drilling still underway at the property’s central northern portion has offered encouraging hints on the feasibility of underground operations in the area with rock strength characteristics said to be ideal for high-capacity longwall mining.

The Queensland-focused explorer has a total of 1650Mt of JORC-compliant resources and 306.6Mt of marketable reserves in its project portfolio.