Paringa Resources (“Paringa”) (ASX:PNL, NASDAQ:PNRL) operates the low cost, high quality Poplar Grove Mine, part of the Buck Creek Complex located in the Illinois Coal Basin in western Kentucky. The Buck Creek Complex includes two fully permitted thermal coal mines: the operating Poplar Grove Mine with production capacity of up to 2.8 Mtpa; and the Cypress Mine with planned production capacity of 3.8 Mtpa.
Construction of the Poplar Grove Mine is complete, with coal sales commencing in April 2019. The Poplar Grove Mine is expected to ramp up production during the 2019 calendar year, targeting full production capacity in 2020. The Group also has future plans to commence construction of the Cypress Mine.
Western Kentucky is one of the world’s best mining jurisdictions due to its access to low cost power, utilities, transportation and non-union labour pool. Mining conditions at Poplar Grove are similar to those encountered in neighbouring mines, which rank as some of the most productive room-and-pillar operations in the world.
Paringa has signed three sales agreements with major utilities in the region, with a total 5-year contracted sales position of up to 6,800,000 tons, providing clear revenue visibility for a significant portion of production.
Underground Mining Operations