Coal: Massive Upgrade For Bathurst’s Buller Coal Resource
August 24th, 2010
Bathurst Resources’ Buller Coal Project was already looking enough of a goer with an estimated 7.3m tonnes of high quality coking and thermal coals. Now the Aust-based mining company has issued a resource upgrade of 42.2m tonnes from five of seven target zones, following exploratory drilling. The company is in a JV with NZ’s L&M Coal Holdings, and is looking to develop this open-cast mining opportunity within next 18-24 months. Managing Director Hamish Bohannan says the reserves should underpin the first 20 years of production from the Buller Project. He says “Bathurst’s objective is to commence production at an annualised rate of 1m tonnes pa from the fourth quarter of 2011, increasing to 2m tonnes pa once further deposits are brought into operation. The additional reserves established from the exploration programme significantly improve the economics of mining the Buller Project, both for ourselves and the local community.”
Among other decisions Bathurst has to make is how to transport the coal, of particular use in steel and other metals’ making, to overseas destinations. One option is move the coal over the Southern Alps to Lyttelton’s deepwater port by rail, as currently happens for Pike River Coal and product from Solid Energy’s Strongman mine. Alternatively, the coal could be barged from the West Coast to Port Taranaki, where trans-shipment to 12 metre draft Panamax type carriers would be carried out.
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