Bathurst Resources Confirms 11.8Mt Coal Reserves, Eyes 15-Year Buller Mine Life Extension

Project Overview and Strategic Significance

Bathurst Resources Limited (ASX, BRL) has unveiled the results of a comprehensive Prefeasibility Study (PFS) for the Buller Plateaux Continuation Project (BPCP) in New Zealand. The study confirms coal reserves of 11.8 million tonnes across the Mount Frederick South (MFS) and Escarpment Extension (ESE) sub-areas, underpinning a potential 15-year extension to the life of the existing Stockton Mine. This extension is critical to maintaining Bathurst’s position as New Zealand’s largest coal producer, with a focus on metallurgical coal used in steelmaking.

The BPCP is a joint venture between Bathurst (65%) and Talley’s Energy (35%) via BT Mining Limited. It leverages existing infrastructure at Stockton, including coal handling and processing facilities, rail, and port logistics, with new developments connected by the proposed Upper Waimangaroa Haul Road (UWHR).

Economic Highlights and Capital Requirements

The PFS outlines a project with strong financial metrics, a post-tax net present value (NPV) of NZ$323 million at an 8% discount rate and an internal rate of return (IRR) of 30%. Pre-production capital expenditure is estimated at NZ$140.3 million, split across site access, infrastructure, water treatment, and mining equipment. Operating costs average NZ$272 per tonne of saleable coal on a free-on-board (FOB) basis at Lyttleton Harbour.

Bathurst plans a staged development approach, with early works and feasibility studies preceding full-scale mining. The UWHR, a 19-kilometre dual-lane haul road, is a key infrastructure component, facilitating coal transport from MFS and ESE to Stockton’s processing plant.

Mining, Processing, and Environmental Management

Mining at BPCP will be open cut, employing conventional truck and shovel methods adapted for the region’s complex geology and historic underground workings. The PFS incorporates detailed geotechnical modelling, pit optimisation, and mine planning to maximise coal recovery and manage waste rock, including engineered landforms designed to mitigate acid and metalliferous drainage (AMD) risks.

Coal processing will utilize the existing Stockton Coal Processing Plant, capable of handling up to 2 million tonnes per annum. Bathurst has developed sophisticated coal blending strategies to optimise product quality and market value, targeting a range of coking coal products suitable for export markets in India, Japan, South Korea, and Australia.

Environmental stewardship is a core focus, with extensive flora and fauna surveys informing rehabilitation and offset programs. Bathurst is engaging with local iwi, Te Rūnanga ō Ngāti Waewae, and other stakeholders to address cultural and social impacts. The project is seeking development permissions under New Zealand’s Fast Track Approval Act 2024, which aims to streamline approvals for projects of regional significance.

Risks and Next Steps

While the PFS confirms the project’s economic viability, several risks remain. These include market volatility, coal quality and washability uncertainties, environmental permitting challenges, and the need for further infill drilling to upgrade inferred resources. Bathurst plans to advance the project to a Feasibility Study level while progressing regulatory approvals.

Capital funding is expected to come from a mix of equity, debt, contractor engagement, and pre-paid offtake agreements. The company also anticipates leveraging existing BT Mining infrastructure and equipment to reduce upfront costs.