Major shareholder Jindal Steel & Power has now increased the limit for Wollongong Coal’s short-term drawdown facility for cash advances from $150 million to $175 million.
The facility was valid until 31 March 2016, which has now been renewed until 31 March 2017. All other terms of the facility remain unaltered, Wollongong Coal said in a statement.
“The board of directors wishes to put on record their deep appreciation for the support extended by JSPML [Jindal] by providing this renewed Facility with increased limit,” the company said.
To date, the company has drawn around $153.25 million under the facility. The funds drawn were used to meet the company’s operational and developmental costs, it said.
The Russell Vale Underground Expansion Plan (UEP) involves extracting 4.7 million tonnes of coal over five years from eight new underground longwall panels.
The UEP for Russell Vale, which had been placed on care and maintenance last September, is expected to contribute $23-million to government through royalties and $85-million through capital investment and other direct and indirect flow-on effects despite ranking 50 out of the 56 coal mines in New South Wales.
The NSW Department of Planning and Environment recommended that the project be approved and Wollongong Coal maintains its proposal was underpinned by technical studies which addressed the concerns of the previous PAC review.
“Despite significant challenges Wollongong Coal has persevered with the unconditional support of its major shareholders and worked tirelessly for several years to ensure the proposal met the requirements of government policies,” it said.
“Wollongong Coal’s longer term strategy to re-establish a stable and sustainable operation with benefits extending far beyond those of the Underground Expansion Plan.”
