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Paringa eyes 2017 start for Buck Creek No 2

4th April 2016

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – Coal developer Paringa Resources had launched a bankable feasibility study (BFS) at the Buck Creek No 2 mine, in the US, following a positive scoping study.

“We are looking forward to rapidly progressing the BFS with the aim of starting construction during mid-2017. Moving directly to a BFS has been made possible by the comprehensive nature of the recent scoping study and the ability to leverage off the extensive work completed as part of the No 1 mine,” said Paringa CEO David Gay.

A scoping study into the No 2 mine found that for capital expenditure of $44-million, Paringa could deliver a 1.8-million-tonne-a-year operation with a mine life of 20 years.

“Typically, a coal project in the US at this stage would move directly into construction; however, we will complete the BFS to identify key areas for optimisation,” Gay said.

Paringa had previously taken the decision to develop the Buck Creek No 2 mine first, as part of a staged multi-project development strategy.

The Buck Creek No 2 mine is located within the Buck Creek mining complex just south of the proposed 3.8-million-tonne-a-year Buck Creek No 1 mine, which would require a capital investment of $127-million.

Meanwhile, formal financing discussions were continuing with debt financiers to fund the No 2 mine, Gay said.

Edited by Creamer Media Reporter

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