Name and Location
Sawin thermal coal project, Poland.

Client
Balamara Resources.

Project Description
Sawin has inferred mineral resources of 288.4-million tonnes.

A prefeasibility study (PFS) completed on the Sawin project, in the Lublin coal basin, has outlined an exceptionally robust project capable of generating very strong returns for Balamara over a long mine life. The PFS envisages the development of an underground mining operation using state-of-the-art, highly efficient longwall extraction techniques capable of delivering average production of 5.8-million tonnes a year over a mine life of 51 years.

Net Present Value/Internal Rate of Return
The project has an after-tax net present value, at a 10.5% discount rate, of $921-million and a nominal internal rate of return of 28.4%.

Value
The project is estimated at $151.3-million, including a 25% contingency but excluding the leased equipment’s capital cost.

Duration
Not stated.

Latest Developments
This PFS has given Balamara enough confidence to progress as soon as possible with a final ore-reserve drilling programme at Sawin, which is the initial step required before progressing to a definitive feasibility study in 2016, paving the way for further development and production thereafter.

Key Contracts and Suppliers
Salva Resources, a subsidiary of HDR Corporation (PFS).

On Budget and on Time?
Not stated.

Contact Details for Project Information
Balamara Resources, tel +61 8 6365 4519, fax +61 8 9388 6040 or email enquiries@balamara.com.au.
HDR Corporation, tel +61 7 3258 6000.