BANDANNA Energy says it’s positioned to be the next thermal coal producer after it increased the amount of measured coal resources at its Springsure Creek tenement. In mining parlance, a ‘measured’ coal resource refers to a deposit that has been sufficiently drilled and tested to allow an accurate assessment of whether a viable mine could be developed at the site. Bandanna Energy’s managing director Michael Gray said the upgrade demonstrated the potential of the company’s Springsure Creek project. “The identification of a total resource of 533Mt, and in particular the 35 per cent increase in measured resource confirms the potential for development of a world scale thermal coal mine,” he said. “Springsure Creek is uniquely positioned to become Australia’s next major thermal coal producer with its high coal quality, relatively low operating cost structure, proximity to existing rail lines, secure port capacity and advanced state of approvals.” Bandanna still has to come to an agreement with landholders who will be affected by the project, including those impacted by a proposed 35 kilometre haul road across prime agricultural land. However, the company says it is “quietly optimistic” that it will make the mine a reality sometime in the next two years. Bandanna recently raised nearly $50 million by selling its stake in the Wiggins Island Coal Export Terminal in Gladstone. This money has been earmarked to fund development of Springsure Creek.
Posted on: Wed, 14 Aug 2013 03:10:32 +0000