After ascertaining the viability of the venture, Bandanna Energy has invested to develop the Springsure Creek subterranean coal project and has taken a senior secured bank guarantee facility of 67 million Australian dollars from Credit Suisse.
According to the agreement, Bandanna will have 50 million Australian dollars at its disposal which it had used earlier to obtain a guaranteed port capacity in the first stage of the Wiggins Island Coal Export Terminal (WICT) and the accompanying rail admittance contracts. Thus, Bandanna has the freedom to acquire more land and long lead-time capital machinery for timely completion of the job.
The project has an allotment of 4 Mtpa capacity via the recent WICET and is expected to start exporting coal by later 2014.
To correct mistakes in the earlier lease application and to consider the issues brought up by the company’s interactions with the locals and the government, Bandanna has considered rendering an improved lease application on EPC 891.
The “Denlo Park” area now has three drills deployed. One drill has finished the pattern to escalate Resources to the Measured Resources as per the JORC code in the 5 to 10 year plan. The second drill will help get information about the locations for excavation and the intended “cut and cover”. The third drill dug a large-diameter (200 mm) cored hole through which vital knowledge about the coal handling plan was obtained. The core was brought above ground with complete recovery, which was an advantage. Also, rock samples from portions of the core seam roof and floor were tested for strength to determine if they would support the heavy mining equipment. The company found the rock appropriate for extensive mining.
Source: http://www.bandannaenergy.com.au/