Australian coal mining company Bandanna Energy has awarded a contract to Ausenco to provide support services for Springsure Creek coal project.

The underground thermal Springsure Creek coal mine project is located around 40km south of Emerald and 60km south-west of Blackwater.

Under the terms of the contract, Ausenco will provide project management and engineering support services for the coal mine.

Ausenco will also provide an engineered budget, schedule and execution plan to help Bandanna finalise the design and capital cost of the project by the end of June this year.

Ausenco CEO Zimi Meka noted that Bandanna Energy’s Springsure Creek coal project is the most advanced thermal coal project in the country.

"The Innovate phase contract further strengthens our work on hand at this intermediate phase of the project’s development, where Bandanna Energy is scheduling to commence production in mid 2015," Meka said.

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Bandanna is a 14% shareholder in Wiggins Island Coal Export Terminal (WICET) stage one at Gladstone, with a port allocation of 4Mt per annum for the Springsure Creek project.

Springsure Creek’s stage one comprises a single underground longwall with an annual production capacity of 5.5 million tonnes and an estimated capital expenditure of $743m.

In November 2013, Bandanna Energy received environmental impact statement (EIS) approval from the Queensland Government in Australia, for the Springsure Creek coal project.

The company also secured the required infrastructure capacity for the rail haulage of coal from the project to port.