Paringa to buy surface property for Poplar Grove mine in US

6 September 2016 (Last Updated September 6th, 2016 18:30)

Paringa Resources has obtained the complete rights to acquire the surface property needed to build its Poplar Grove mine in the US.

Paringa Resources has obtained the complete rights to acquire the surface property  needed to build its Poplar Grove mine in the US.

The 1.8 million tonnes per annum (Mtpa) mine, formerly known as No 2 Mine, is located immediately south of the company’s proposed 3.8Mtpa Cypress mine, both located within the Buck Creek Complex in Kentucky.

Rights secured by the company represent a total of 318 acres controlled by local landowners.

Paringa said that the secured mine site property for Poplar Grove complements the Barge Load-Out facility and the Cypress mine site, which was earlier obtained and permitted.

"General investor sentiment for US thermal coal continues to show signs of improving."

Permitting for the mine is underway and remains on track for mine construction to begin early next year, with production expected to begin in early 2018. 

Paringa Resources president and CEO David Gay said: “Over the coming months, Paringa is looking forward to updating the market on the Poplar Grove Mine’s design, infrastructure, Opex estimate, leasing and permitting.

“General investor sentiment for US thermal coal continues to show signs of improving, providing an ideal environment to finalise financing discussions for the best undeveloped thermal coal project in the US."

The company also expects significant reductions to the operating costs (Opex) at the Poplar Grove mine due to reductions in the costs of labour, materials, and supplies, as well as leased equipment.