PERTH (miningweekly.com) – Coal developer Paringa Resources has received the final permit for its Poplar Grove mine, in Western Kentucky’s Illinois basin, meaning construction can start by mid-2017.
The ASX-listed company on Thursday told shareholders that it had received the final federal Surface Mining Control and Reclamation Act permit, adding to the permitted 3.8-million-tonne-a-year Cypress mine.
“The ability to deliver on our permitting schedule is a statement to the efforts of our highly qualified and experienced Paringa team,” said CEO Todd Hannigan.
“Importantly, we remain on track to deliver on all the commitments we made to our shareholders and we look forward to announcing the results on the updated bankable feasibility study (BFS) in the first quarter of 2017, negotiating a competitive financing package and commencing construction at Poplar Grove by mid-2017.”
An earlier BFS for the Poplar Grove mine estimated that the project would require a capital investment of $40-million to develop a 1.8-million-tonne-a-year operation.
Once Poplar Grove is established, the company will make modular expansions to the mine’s capacity, followed by the development of the fully permitted Cypress mine.
The combined Buck Creek complex is expected to generate average earnings before interest, taxes, depreciation and amortisation of $132-million, if the two mines are operating at full capacity.