Bathurst to seek fast-track for new mining infrastructure

Friday 4th May 2012

West Coast coking coal miner Bathurst Resources is considering fast-tracked resource consents for future developments on the Denniston Plateau using the Environmental Protection Authority's process for projects of national significance.

Such a decision would require approval from the Environment Minister, Amy Adams, and would trigger a process that can take no longer than nine months and allows appeals only on points of law.

In an interview with the Companyinsight website, Bathurst's chief financial officer Richard Tacon said the company was considering the alternative EPA process because it was "very structured" and could only be appealed on points of law.

The Perth-headquartered company, listed on both the NZX and ASX, has been thwarted in attempts so far to begin open-cut mining at its Escarpment mine site on the Denniston Plateau, as it works through three sets of appeals by local residents and environmental groups. The delays have prompted complaints, particularly from Australian investors with expectations of faster consenting processes.

Bathurst announced last week it had reached a settlement with residents of the township of Fairdown over coal-handling facilities, while the first of two appeals to the Environment Court by conservation groups failed this week. The court ruled that climate change did not have to be considered as a factor in resource consent applications involving coal mining.

Tacon said the company's best guess for the more substantive appeals against the environmental impacts of the proposed mining operation was early in the September quarter, with all appeals material to be filed with the court by June 1.

The residents' settlement was achieved mainly by moving its proposed stockpile site to a more remote site, but also by adopting a lower impact aerial conveyor system instead of the previously proposed water-race to transport coal from the plateau to the lowlands for export through either New Plymouth or Lyttelton.

Tacon detailed several environmental benefits from the change to aerial from water-borne transport for coal from the plateau, revealing the company had discovered its proposed site for coal-washing on the plateau had ecological significance.

The need to build a wash-plant was delayed by the new infrastructure, which Bathurst will need consents for, but which it believes has less environmental impact than its previous plans.

"These should be less contentious, particularly as the proposed site for the stockpile is not on conservation land," he said. "We are also considering the EPA approval path."

Bathurst also has substantial tenements on the part of the plateau it calls North Buller, for which no resource consents have yet been sought.

Questioned on the company's ability to continue funding activity, Tacon said production from its Cascade and Takitimu mines were generating cash, there was potential for production from the underground Coalbrookdale mine, which also has resource consents.

On top of that, the company anticipated securing US$90 million in credit lines as it completes off-take agreements with two future buyers of the high quality coking coal, used in steelmaking, which Bathurst is targeting.

Tacon also sought to clarify the impact of the changes on projected total output from Bathurst's various Denniston plateau mines. While Escarpment has been talked up as one million tonnes a year production, it will initially produce around 500,000 tonnes annually, augmented by up to 350,000 tonnes from Cascade and Brookdale. Escarpment will be able to produce 1 million tonnes annually once the new infrastructure is in place.

Bathurst shares were down 1.3 percent to 78 cents in trading on the NZX this morning.

BusinessDesk.co.nz

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