PERTH (miningweekly.com) – Despite the recent downturn in coal prices and the continued depressed market sentiment, ASX-listed Bandanna Energy was adamant that its Springsure Creek project, in Queensland, would be developed.

The miner said on Wednesday that it was finalising the supplementary environmental-impact statement (EIS) for the mine, which addressed comments made during the public submission period of the draft EIS.

It was expected that the EIS process would be finalised in the September quarter of this year.

The company has also finalised the purchase of water allocation for the Springsure Creek project, with MD Michael Gray noting that the purchase meant the mine would not have to draw water from the local water table or aquifers.

Bandanna had previously reported that a capital investment of some A$743-million would be required for the Stage 1 development of the Springsure project, which would deliver some 5.5-million tonnes of coal a year.

The second stage of the operation, which would increase production to 11-million tonnes a year, would require an additional capital investment of A$437-million.

Gray said on Wednesday that discussions with potential Chinese and Korean investors were continuing, and warned of the possibility that finalising investments could take longer than originally proposed, owing to the current coal market conditions and a number of other coal assets being offered for sale.

Despite this, Bandanna believed that the Springsure Creek project was well positioned to attract investors, compared with a range of other Australian and international assets currently for sale.

“The size of the resource and the long production life it provides, the high coal quality, relatively low capital and operating cost structure, proximity to existing rail lines and secure port capacity and advanced state of approvals, ensures that Springsure Creek is differentiated from the range of operating and greenfield projects currently on the market,” Gray said.

He added that it was clear from discussions with potential investors that they were concerned about regulatory uncertainty in Australia, but Gray noted that if the company could continue to progress the EIS and other regulatory approvals for the project, it should further highlight the attractiveness of investment in the project.

Subject to a number of factors, particularly the regulatory approvals and project funding, the Springsure Creek would likely start production by mid-2015.