Paringa Resources has acquired the surface property rights necessary for the construction of the re-named Poplar Grove coal mine in Kentucky, US. Previously known as the Buck Creek No. 2 mine, the Poplar Creek is a proposed 1.8 million tpy mine located within the Buck Creek Complex.
The surface rights represent a total of 318 acres controlled by local landowners and secures mine site property for Poplar Grove, adding to that secured for the construction of a barge loadout facility and the Cypress mine (formerly Buck Creek No. 1 mine).
Permitting at the site is progressing as planned, the company added, and remains on track for mine construction to begin early next year with production from early 2018.
“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,” said Paringa’s President and CEO, David Gay.
The company added that it is expecting to announce significant reductions to the OPEX at Poplar Grove due to continued reductions in the costs of labour, materials, supplies, leased equipment and fuels. Final OPEX estimates will be incorporated into the bankable feasibility study, which is due later this year.
“General investor sentiment for US thermal coal continues to show signs of improving, providing an ideal environment to finalise financing discussions for the best thermal coal project in the US,” concluded Gay.
Edited by Jonathan Rowland.