Northern heading in the right direction

WITH its share purchase plan closing next week, Northern Energy can see itself becoming a 7 million tonne per annum coal producer in the next five years.
Northern heading in the right direction Northern heading in the right direction Northern heading in the right direction Northern heading in the right direction Northern heading in the right direction

Northern Energy's projects

Blair Price

In a presentation to the Queensland Energy and Coal Conference yesterday, Northern managing director Keith Barker provided a company and project update.

For Northern’s Elimatta thermal coal project in the Surat Basin, Barker said the final feasibility studies for mining, the wash plant and infrastructure were now underway.

The proposed 5Mtpa open cut operation has 82Mt of proven coal reserves and 24Mt of probable reserves.

Mine construction is expected to take place in late 2011 and production to start in 2013; however, further infrastructure development is required relating to parts of Queensland Rail’s network and the proposed port and rail expansions at Wiggins Island.

Northern is working towards completing its environmental impact statement and has lodged the mining lease application for Elimatta.

At its Maryborough project, Northern is developing an environmental plan for the proposed Colton hard coking coal mine.

The open cut project is aiming to produce 200,000-500,000 tonnes of product per annum, to be transported to the Port of Gladstone by rail or to Bundaberg by road.

The offer period for the company’s issue of 22.86 million shares at A35c each to raise $12 million closes on July 22.

The Queensland Energy and Coal Conference at the Brisbane Marriott Hotel has been organised by Informa and ends tomorrow.

Shares in Northern closed up 1c to 35c yesterday.

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