BANDANNA AND AUSENCO FORM SPRINGSURE ALLIANCE
Written on the 29 January 2014
BRISBANE mining companies Bandanna Energy Limited (ASX: BND) and Ausenco Limited (ASX: AAX) have today announced their alliance for the Springsure Creek Coal Project.
Ausenco will provide its project management, engineering support and procurement services to the Bandanna Energy team heading the project, located at the Queensland Bowen Basin.
“We are delighted to be working with Bandanna Energy on the Springsure Creek project, the most advanced thermal coal project in the country,” says Ausenco CEO Zimi Meka (pictured).
The appointment of Ausenco will facilitate Bandanna Energy with finalising the design, schedule and capital outlay of the project by June 30 this year.
The capital cost was previously estimated at $743 million in the Defensive Feasibility Study (DFS) completed in December 2012, but this will likely be revised due to the substantial weakening in the Australian mining construction market and an optimised project design.
In the intermediate phase of the project the companies will define the capital value of the project and deliver detailed plans for management and execution.
Bandanna Energy also reported an increase in probable reserves for the project from its latest reserve report.
The company reported a rise in probable marketable reserves from 154Mt in April 2012 to 165Mt in January 2014.
Bandanna Energy is scheduled to commence production on the Springsure Creek Coal Project by mid-2015.
BND is trading today at $0.15, up 3.5 per cent, while AAX is trading at $0.685, up 1.48 per cent.