“Bandanna has modified its mine plans in order to avoid, where possible, impacting land which it believes may ultimately be classified as SCL, and has sought to minimise the impact on such land by planning predominantly for underground mining in areas where it is not possible to avoid an impact,” the company announced.

“Bandanna also plans to undertake initiatives in joint venture with agricultural property managers and the Sustainable Minerals Institute of the University of Queensland to develop best practice land management techniques, promote co-existence between agriculture and mining land uses and mitigate the effect of mining on land which may ultimately be classified as SCL.”

Last week Bandanna received the final terms of reference from the Queensland government for the Springsure Creek and Arcturus projects.

As Springsure Creek is an underground project, Bandanna expects it to meet the lighter transitional arrangements under the proposed SCL scheme.

“Under this framework, Bandanna will be required to make all reasonable endeavours, including if necessary, contouring and laser levelling, to rehabilitate any effects on SCL such as through subsidence,” the explorer said.

But Bandanna expects the standard SCL policy requirements to have more impact on its Arcturus project, which is predominantly based on open cut mining.

Bandanna’s Springsure Creek project sits along the southwestern margin of the Bowen Basin and is targeting two longwall operations for 11 million tonnes per annum run-of-mine.

Initial production from one longwall operation is aiming for 5.5Mtpa ROM, with first development coal expected as early as 2014 and first longwall coal due a year later.

No dates have been revealed for starting up a second longwall to double production.

The project is targeting at least 23 years of mine life to produce 195.8Mt of thermal coal.

The Arcturus thermal coal project 35km southeast of Emerald is targeting 5Mtpa of product coal through open cut mining, while underground mining is flagged for later years.

Coal production is expected during 2014 and 70.1Mt of product coal is anticipated over the first 17 years of mining.

About 42 million hectares, or 24%, of Queensland’s total land area falls under the SCL policy, including a total of 4.78 million hectares in the two strategic cropping protection areas.

The policy earmarks protection for SCL land from coal, minerals, gas and petroleum development.

SCL land is based on previously announced criteria which cover factors such as slope, rockiness, soil depth, drainage, soil pH levels, salinity and water storage capability.

The Queensland government aims to introduce its SCL policy into parliament later this year.

Bandanna shares were steady at $1.95 this morning.