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Paringa moves closer to mining at Buck Creek

5th May 2014

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – US-focused Paringa Resources has been granted a mine permit to start construction of surface mine facilities at its Buck Creek coal project, in Kentucky.

The company said on Monday that the receipt of the Surface Mine Control and Reclamation Act permit, along with the previously granted US Army Corps of Engineers permit, completed the long lead-time permits required to construct and operate the Buck Creek mine.

“Typically, a coal project in the US at this stage would move directly into construction, however, we will complete our remaining technical studies to evaluate other production scenarios which could potentially add value to the Buck Creek project,” said Paringa CEO David Gay.

He noted that following the completion of these studies, Paringa would aim to start construction in 2015.

A recently completed scoping study into the Buck Creek mine found that the project could deliver 3.4-million tonnes a year, over a minimum 16-year mine life.

The project would require a capital investment of $76-million, along with a coal handling and process plant and barge load-out facility of $33-million, bringing the total capital cost to $109-million.

Edited by Creamer Media Reporter

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