Paringa begins permitting for No. 2 mine

Paringa Resources has begun the mine permitting process for its Buck Creek No. 2 mine in Ohio. The mine required standard permits for mining, surface facilities, refuse storage and transportation.

“We are very pleased to have already begun the permitting process, which should be finalised allowing construction to begin at the No. 2 mine during 2Q17,” said Paringa’s President and CEO, David Gay.

Paringa recently announced it had successfully renegotiated its sales agreements with utilities Louisville Gas & Electric and Kentucky Utilities to allow delivery of coal from No. 2 mine with future sales totaling US$205 million.

The sales agreements account for almost 60% of No. 2 mine’s annual output over the five years covered by the agreements and “significantly de-risk the project for potential financiers,” the company said.

Paringa has appointed Associated Engineers to complete the permitting process for No. 2 mine. Associated Engineers has “significant experience” in permitting new coal mines in the Illinois Basin, including Buck Creek’s No. 1 mine.

Despite significant falls in US coal demand over recent years, the future of Illinois Basin coal remains relatively bright. According to the Energy Information Administration’s Annual Energy Outlook 2016, the Illinois Basin will overtake Appalachia to become the country’s second largest coal-producing region by 2020.

Edited by Jonathan Rowland.

Read the article online at: https://www.worldcoal.com/coal/27052016/paringa-begins-permitting-for-no-2-mine-2016-850/