Coal news and updates

Paringa confirms low cost capital development of Kentucky project

Paringa Resources has confirmed the availability of low cost barge waterways, rail and road coal transportation infrastructure for its Buck Creek thermal coal project in the Illinois Coal Basin, Kentucky.

Its review of regional infrastructure also indicated the project to be close proximity to coal mining equipment, services industries and highly skilled population centres with access to very competitive power and water utilities.

This confirms the potential for the low cost capital development of Buck Creek.

The review of regional infrastructure will be incorporated into the Scoping Study for the Buck Creek Project which is due for completion by the end of March 2014.

Buck Creek is strategically located near some of the highest margin thermal coal mines in the country that are owned by the second largest US coal firm Alliance Resource Partners (NASDAQ:ARLP), which has a market cap. of circa US$3 billion.

An independent study had confirmed its coal to have higher heating value, lower sulphur and lower chlorine, positioning it as a premium product in the Illinois Basin.

It has a JORC Resource of 154 million tonnes of thermal coal.

 
Source: proactiveinvestors Australia