Construction starts at Paringa’s Poplar Grove mine
PERTH (miningweekly.com) – Construction of the Poplar Grove coal mine, in western Kentucky’s Illinois basin, has started, some 18 months after a decision to build was taken.
ASX-listed Paringa Resources said on Tuesday that first coal production from the 2.8-million-tonne-a-year mine was expected within 12 months.
“The Paringa team has done an impressive job in completing all technical studies, permitting and financing to begin construction of the Poplar Grove mine less than 18 months from the release of the scoping study results and announcing the decision to build the lower capex Poplar Grove mine first, followed by the permitted Cypress mine,” said Paringa MD and CEO Grant Quasha.
The project will cost some $44.7-million to develop, is expected to have a mine life of 25 years and will deliver average yearly earnings before interest, taxes, depreciation and amortisation of $67-million.
Poplar Grove is located immediately south of the Cypress mine (formerly called No. 1 mine), which is a proposed 3.8-million-tonne-a-year development in the Buck Creek complex.
“We are very excited to have now begun construction of the low capex and high return Poplar Grove mine, which has low construction and execution risk, given the mine’s location in the heartland of the western Kentucky coal industry,” said Quasha.
“I believe this is going to be a very exciting 12 months ahead as we progress through the construction phase and towards first coal production, advance negotiations with utilities located within the Ohio river and South East markets potentially leading to additional sales contracts, continue discussions with advisers for a potential listing on major US stock exchange and begin to roll-out our public relations and digital marketing campaign throughout North America.”
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