Quarterly Activities Report
Brisbane, Oct 31, 2012 AEST (ABN Newswire) - During the Reporting Period Bandanna Energy Limited (ASX:BND) continued laying the foundations for the development of the Springsure Creek coal project and execution of its strategy to become Australia's next coal producer.
Key activities for the Reporting Period, with the strategic objective of bringing the underground Springsure Creek coal project into production in the second half of 2014, include:
- finalisation of agreements with Acacia Coal Limited (ASX: AJC) for the development and operation of the Triumph Creek train loadout infrastructure
- acceptance of a senior secured debt facility with Credit Suisse for $67.3 million
- completion of consultants' input into the definitive feasibility study
- a significant JORC compliant Resource upgrade including a maiden Measured Resource
- preparation for submission of a replacement mining lease application over part of EPC 891
- continued development of Bandanna's agriculture strategy, with respected agricultural science input, to further improve surface level agriculture production in co-existence with underground coal mining at Springsure Creek
- committing investment to increasing agricultural production through improved irrigation infrastructure at Springsure Creek as part of the co-existence strategy,
together with release of the Company's Financial Reports and Annual Report for the year ended 30 June 2012 and preparation for the Company's Annual General Meeting to be held on 15 November 2012.
The Company notes that during the Reporting Period, there was significant decline in current thermal coal prices. Notwithstanding this decline, Bandanna notes that Wood Mackenzie, one of the world's leading commodity analysts, predicts significant demand growth for the period from 2015 to 2030, leading to increased thermal coal prices in the long term.
Bandanna shares this view of long-term demand and, as outlined in the Company's 2012 Annual Report, remains fully committed to progressing development of the Springsure Creek Project for first coal production in the second half of 2014. First production will coincide with the completion of Stage 1 of the Wiggins Island Coal Export Terminal (WICET).
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About Bandanna Energy Limited
Bandanna Energy Limited (ASX:BND) is uniquely positioned to become Australia's next coal producer. The company's core activities are exploration, project evaluation and development of thermal and PCI coal assets located in Queensland, Australia.
Bandanna Energy is the only ASX listed company with substantial coal assets in both the Bowen and Galilee basins subject to EIS and advanced mine studies. The company is committed to working constructively with the communities in which it operates, and delivering growing returns to shareholders, government and the community.
Bandanna Energy's Springsure Creek underground thermal coal project is scheduled to commence production in mid-2015. Bandanna is a 14% shareholder in Wiggins Island Coal Export Terminal (WICET) Stage 1 at Gladstone, with port allocation of 4Mtpa for the Springsure Creek Project, and has also secured the necessary infrastructure capacity for the integrated rail haulage of coal from the Springsure Creek Project to port.
Bandanna Energy Limited