Cockatoo Coal (ASX:COK) has increased production of ULV PCI coal from its Baralaba North Project in central Queensland to 1 million tonnes per annum after completing the first phase of the Baralaba Expansion.
This is a key step in ensuring the company can meet its infrastructure take-or-pay obligations, which includes the delivery of coal to the new Wiggins Island Coal Export Terminal, which is now over 80% complete.
Cockatoo and its major shareholders are currently in advanced stage discussions with JFE Shoji Trade Corporation regarding the future direction and funding of the Baralaba joint venture.
In addition, it and its major shareholders are currently in advanced negotiations in respect of the release of up to $37 million of restricted cash, which the company has provided for infrastructure guarantees.
Following release of the restricted cash, Cockatoo intends to progress with a potential mezzanine financing.
The Environmental Impact Statement to further increase production to 3.5 million tonnes per annum was submitted to DEHP Queensland in April 2014.
This expansion will place the company in a strong position to take advantage of this.
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