Paringa ResourcesLtd.. said April 4 that it has started a bankable feasibility studyon the No. 2 mine at its BuckCreek coal mining complex in Kentucky after deciding to develop themine before the proposed 3.8 million-tonne-per-annum No. 1 mine.
The company announcedthat it will expedite the remaining technical studies for the No. 2 mine in Februaryafter a scoping study demonstrated that the mine will be a high-margin 1.8 million-tonne-per-annummine with CapEx of only US$44.0 million due to favorable geology and shallow depthof the coal seam from surface.
According to Paringa CEO David Gay, the company plans to rapidlyprogress the BFS and expects to complete the study, with a view to start constructionat the No. 2 mine in mid-2017.
Furthermore, the miner is continuing formal financing discussionswith debt financiers to help fund the US$44.0 million CapEx for the No. 2 mine,which the company expects to be reduced further during the BFS process.The study is expected to complete during the third quarter.