Award of Coal Haulage Contract to Asciano (ASX:AIO)
The contract with Asciano's Pacific National Coal haulage business is for the transportation of up to 4 million tonnes per annum (Mtpa) from Bandanna Energy's Springsure Creek mine in Central Queensland.
Bandanna Energy Managing Director Dr Ray Shaw said the haulage contract commencement was aligned to the start of operations of the Wiggins Island Coal Terminal Stage 1 at Gladstone, due for first export coal in mid 2014.
"We are very pleased to have finalised this agreement with Australia's largest national rail freight and ports operator, to provide a clear pathway from mine to port for our quality Springsure Creek coal assets."
"The contract compliments our Take or Pay agreement executed with WICET, in which Bandanna Energy is a 14% shareholder, for the movement of our full allocation of 4 million tonnes each year."
"In line with our recent commercial agreement with QR National Network to proceed with the below rail component, the Wiggins Island Rail Project (WIRP), the award of this contract finalises the integrated rail movement of our coal from mine to port in time for WICET Stage 1," he said.
About Bandanna Energy Limited
Bandanna Energy Limited (ASX:BND) is uniquely positioned to become Australia's next coal producer. The company's core activities are exploration, project evaluation and development of thermal and PCI coal assets located in Queensland, Australia.
Bandanna Energy is the only ASX listed company with substantial coal assets in both the Bowen and Galilee basins subject to EIS and advanced mine studies. The company is committed to working constructively with the communities in which it operates, and delivering growing returns to shareholders, government and the community.
Bandanna Energy's Springsure Creek underground thermal coal project is scheduled to commence production in mid-2015. Bandanna is a 14% shareholder in Wiggins Island Coal Export Terminal (WICET) Stage 1 at Gladstone, with port allocation of 4Mtpa for the Springsure Creek Project, and has also secured the necessary infrastructure capacity for the integrated rail haulage of coal from the Springsure Creek Project to port.
Bandanna Energy Limited