ASX-listed mining company, Paringa Resources, has begun its bankable feasibility study (BFS) at its Buck Creek No. 2 mine in the Illinois Coal Basin in the US.
The No. 2 mine lies within the Buck Creek Mine Complex and south of the Buck Creek No. 1 mine’s proposed 3.8 million tpy coal project.
“We are looking forward to rapidly progressing the BFS with the aim of starting construction during mid-2017,” said Paringa’s CEO, David Gay.
The company has been able to move directly to BFS on No. 2 mine on the back of a comprehensive recent scoping study and the ability to leverage its work as part of the BFS for No. 1 mine.
“Typically, a coal project in the US at this stage would move directly into construction,” said Gay. “However, we will complete the BFS to identify key areas for optimisation.”
Since Paringa acquired the Buck Creek Mine Complex in 2013, its mine engineers have prepared a geological model for the entire site. It was this work that identified the resource now targeted by the No. 2 mine development.
Paringa now aims to develop the No. 2 mine first, following by the No. 1 mine, as part of a “staged development strategy for building a new mid-tier high-margin Illinois Basin coal company,” the company said.
The Buck Creek Mining Complex lies in Kentucky close to the Indiana border and close to a number of producing mines owned by Alliance Resource Partners. It has direct access via barge to the Ohio River coal market, the location of a number of coal-fired power plants.
The Illinois Basin is second largest coal-producing region in the US. Its popularity has increased in recent years as most coal-fired power plants in the US have now installed scrubbers to remove around 95% of sulfur dioxide emissions, negating the impact of Illinois Basin coal’s high sulfur content.
Edited by Jonathan Rowland.
Read the article online at: https://www.globalminingreview.com/exploration-development/08042016/paringa-resources-begins-bfs-at-no-2-mine-2016-550/