PERTH (miningweekly.com) – The share price of coal miner Bathurst Resources increased by 4% on Monday after the company announced that the mine life of its 65%-held Rotowaro project, in New Zealand’s North Island, had been extended by a further four years.
The miner said that the mine life extension would be achieved through the development of a new resource at Waipuna West, which is within the Rotowaro operation’s current area of operation.
“The four-year extension to the life of the Rotowaro operations is an excellent outcome for the region, with domestic coal being sourced for local customers and the security of more than 100 regional jobs,” said Bathurst CEO Richard Tacon.
He noted that the company has negotiated to purchase the existing mining fleet for NZ$18-million to return the mine to owner-operator model, which would also secure the continuity of employment in the Waikato area for the existing workforce.
Major supply contracts for 480 000 t/y have also been secured until 2023.
In the last financial year, Rotowaro produced 700 000 t of thermal coal.
Bathurst shares were trading at a high of 13c each on Monday, up from an opening price of 12.5c each.