bathurst reviews a production lift at its esta

Bathurst reviews a production lift at its established NZ mines

Ross Louthean 3 January 2011


The recently acquired New Zealand mining assets of Galilee Energy may well see a significant growth in coal production and in development plans in 2011 by Bathurst Resources Ltd (ASX & NZX: BTU).

While Bathurst is now advancing its Buller coal project on the South Islands West Coast C with a target of getting it into production within a year C it is now assessing the production aspirations of the small Cascade thermal coal mine near Westport and the larger Takitimu sub bitimumous in the Ohai-Nightcaps region of Southland.

While the picture painted for the Cascade mine was for a finite life, Bathurst believes this can now be extended with two untapped deposits on the lease.

Most of Cascades coal is sold to Holcim for its cement works and recent annual capacity has been in the 40-45,000 tonnes range.

The larger, adjacent Whareatea West has a JORC Code resource of 25.7 million tonnes, including 18 Mt in the measured category and the coal system there is an extension of the system at the Escarpment deposit which will be the first developed by Bathurst on the Buller project.

In a recent investor presentation Bathurst said the western part of Whareatea West, which abuts the Buller leases, has not been explored.

The Takitimu operations -- currently producing about 160,000 tonnes per annum -- has coal handling and road load-out facilities with a capacity of 200,000 tpa.

Bathursts managing director Hamish Bohannan said that, while the majority of Takitimu coal was under a long term contract to dairy company Fonterra, there was clear potential for increased demand from industry in the Southland and Otago regions.

There were other deposits in the Southland region to be evaluated and, to gain a broader reach into the NZ market, Bathurst would evaluate opportunities for Eastern Coal Supplies which had been initiated by Galilee before the sale, and this took in a coal handling and distribution centre at Timaru.