Ann: MINE: BRL: Bathurst Resources Knuckles Down

• Release Date: 25/02/14 11:56
• Summary: MINE: BRL: Bathurst Resources Knuckles Down to Preserve Value
• Price Sensitive: No
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					BRL
25/02/2014 09:56
MINE

REL: 0956 HRS Bathurst Resources Limited

MINE: BRL: Bathurst Resources Knuckles Down to Preserve Value

25 February 2014

Listed Company Relations
New Zealand Exchange Limited
Level 2, NZX Centre
11 Cable Street
Wellington, New Zealand
Company Announcements Platform
Australian Securities Exchange
10th Floor, 20 Bond Street
Sydney
NSW 2000

Bathurst Resources Knuckles Down to Preserve Value

Bathurst Resources Limited (NZX/ASX: BRL 'Bathurst') this morning implemented
a proposal to cut costs and preserve value in its Buller Project as it still
awaits final documentation approval for its Escarpment Mine.

The key to these actions is to stabilise the company, move it into a cash
positive situation, secure the Escarpment Mine and develop it to the point
where we can move quickly into commercial production once the market
improves.

The Company has announced a proposal to its staff to focus on its existing
three operating mines which largely service the local dairy and cement
industries and on establishing its new Escarpment Mine once its operating
plans have been approved and the "Authority to Enter and Operate" issued by
the regulatory authorities.

Following the retirement of Craig Munro as Chairman and his succession by
Dave Frow, the Board has elected not to replace the position and run with a
smaller Board. The Board and Executive all agreed immediate reduction in
remuneration of up to 30%.

Resources Consents for the Escarpment Mine were issued on 24 October 2013,
following which the Councils, Iwi and Department of Conservation commenced
their review of the Bathurst Operating Plans for Escarpment.  This process,
whilst expected to be completed shortly, is still ongoing.  Until the process
is completed and the "Authority to Enter and Operate" is issued, Bathurst is
not permitted to undertake activities on the lease.

Over the past month, the international price for coking coal has dropped from
its 2012 high of over USD300 per tonne to a current spot of about USD120 per
tonne, its weakest position in about nine years

Bathurst has consistently stated its expected operating costs at Escarpment
to range from about US120/tonne on start-up, reducing to less than USD90 per
tonne as production ramps up to about 1 million tonnes per annum.

Bathurst is committed to commencing establishment of the Escarpment Mine as
soon as Authority is granted but will defer ramping up production until such
time as the market is deemed to be recovering. For the next period, focus
will be on securing the site, establishing facilities, including water
management dams and stockpile areas, and mining sufficient coal to complete
market qualification for coking coal supply to steel producers, principally
in Japan and India.

"Sadly this means that about 29 jobs will become redundant, but it will
ensure that the Company preserves cash to continue its operating and
development activity."

Yours sincerely
Bathurst Resources Limited

Hamish Bohannan
Managing Director
End CA:00247448 For:BRL    Type:MINE       Time:2014-02-25 09:56:48