Production from the Springsure Creek Coal longwall project is targeted to start in the second half of 2015, he said.

“The company’s ability to commence production in the second half of 2015 and meet the take-or-pay commitments is dependent upon the grant of MLA 70486 and the group securing funding for the development of the Springsure Creek Coal Project in 2014,” Pegler said.

“The grant of MLA 70486 is considered a likely development in the operations of the group due to the approval by the Department of Environment and Heritage of the project’s EIS and subsequent issue of the draft environmental authority for the project.”

Bandanna’s consolidated loss after income tax for the six months ending December 31 was $5.6 million.

Bandanna entered into agreements for port and rail services in the financial year ended June 30, 2012, required to export coal planned for production from the Springsure Creek Coal Project, Pegler said.

“The infrastructure agreements include financial commitments (rail and port charges) for the group, the commencement of which are contingent upon construction of Stage 1 WICET (port) and an access agreement being secured by the company’s rail haulage provider Pacific National (rail),” he said.

“Once the rail and port charges commence, the group will be liable to pay the port and rail charges irrespective of whether the group has coal to rail and ship through WICET Stage 1 (take or Pay). As at the date of this report, WICET has advised that construction of Stage 1 WICET is scheduled for completion in March 2015.”