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Springsure Creek coal project gets enviro approval

8th November 2013

By: Mariaan Webb

Creamer Media Contract Publishing Editor

  

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JOHANNESBURG (miningweekly.com) – The Queensland government has approved the environmental-impact statement (EIS) for the Springsure Creek underground thermal coal project, owner Bandanna Energy announced on Friday.

The ASX-listed company would now move into the final stages of regulatory approval for the grant of a mining lease for Springsure Creek, which is set to start production in mid-2015, MD Michael Gray commented in a statement.

“This decision takes us another step closer to final approval of our Springsure Creek project. The project is one of the few current mining projects in Queensland that is ready to proceed in the immediate future given it has access to existing rail and port capacity,” he added.

Bandanna is a 14% shareholder in the Wiggins Island Coal Export Terminal (Wicet) Stage 1 at Gladstone, with port allocation of four-million tonnes a year for Springsure Creek. It has also secured necessary infrastructure capacity for the integrated haulage of coal from the mine to the port.

Gray added that the EIS approval had satisfied a key investment criteria for many of the potential customers and joint venture partners that the company was speaking to in relation to Springsure Creek.

However, the mid-2015 production and export start date for coal from Springsure Creek is still subject to the completion of the construction of Wicet Stage 1, set for March 2015, project funding and the grant of a mining lease.

Bandanna previously said that Springsure Creek would produce 5.5-million tonnes a year of coal in the Stage 1 development, with production increasing to 11-million tonnes a year in the Stage 2. The first stage would require A$743-million and another A$437-million would be required to increase production to Stage 2 capacity.

Edited by Creamer Media Reporter

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