Bathurst Faces Regulatory and Market Risks Despite Major Coal Reserve Gains
Bathurst Resources Limited has announced a substantial increase in its marketable coal reserves, driven by key project developments and positive feasibility studies, while total resources saw a slight decline due to reassessments and mining depletion.
- Marketable coal reserves increased from 6.7 Mt to 33.9 Mt as of June 2025
- Completion of Buller Plateau Continuation Project Pre-Feasibility Study
- Addition of 16.5 Mt marketable reserves at the Tenas project following updated Definitive Feasibility Study
- Total coal resources decreased slightly from 159.1 Mt to 152.7 Mt due to reassessments and mining depletion
- Economic models show positive NPVs and IRRs with ongoing environmental and regulatory considerations
Significant Reserve Growth Amid Resource Reassessment
Bathurst Resources Limited (ASX, BRL) has delivered a comprehensive update on its coal resources and reserves as at 30 June 2025, revealing a striking increase in marketable coal reserves alongside a modest decline in total resources. The company’s marketable reserves surged by 27.2 million tonnes, jumping from 6.7 million tonnes to 33.9 million tonnes, a leap largely attributed to the completion of the Buller Plateau Continuation Project (BPCP) Pre-Feasibility Study and the addition of 16.5 million tonnes at the Tenas project following an updated Definitive Feasibility Study.
Conversely, total coal resources, inclusive of the Tenas project, decreased slightly from 159.1 million tonnes to 152.7 million tonnes. This reduction reflects a combination of mining depletion and revised assessments of economic extraction prospects across several key projects, including Denniston, Cypress, and others.
Project Highlights and Technical Advances
The BPCP Pre-Feasibility Study has been pivotal, enabling Bathurst to declare new reserves at Denniston (Whareatea West, Escarpment, and Sullivan) and Mount Frederick South, with marketable reserves totaling 9.9 million tonnes (100% BRL) and 1.9 million tonnes (65% BRL) respectively. The Tenas project, located in British Columbia, Canada, contributed significantly with 16.5 million tonnes of marketable reserves, supported by rigorous JORC-compliant technical studies including extensive drilling, sampling, and geophysical logging.
Bathurst’s resource modeling integrates advanced geological and geostatistical techniques, leveraging detailed sampling data and downhole geophysics to ensure robust estimates. The company has applied conservative mining modifying factors, accounting for historical underground workings, dilution, and losses, to underpin the reliability of its reserve figures.
Economic Viability and Environmental Stewardship
Economic evaluations underpinning the resource update indicate positive net present values (NPV) and internal rates of return (IRR) for the projects. For instance, the standalone Escarpment Extension project shows a post-tax NPV(8%) of NZ$193 million and an IRR of 21%, while the overall Buller Plateaux Continuation Project boasts an NPV(8%) of NZ$323 million and an IRR of 30%. These figures incorporate detailed cost assessments, including capital expenditure, operating costs, royalties, and environmental management.
Environmental considerations are integral to Bathurst’s planning, with comprehensive acid mine drainage (AMD) management strategies, water treatment designs, and progressive rehabilitation plans in place. The company is actively engaging with indigenous groups, local communities, and regulatory authorities to secure necessary consents, including applications under New Zealand’s Fast Track Approvals Act, anticipated in late 2025 or mid-2026.
Outlook and Strategic Implications
Bathurst Resources’ updated resource and reserve statement reflects a confident step forward in its coal mining operations, balancing growth with sustainability and regulatory compliance. The significant reserve increase positions the company well to meet ongoing demand for metallurgical coal, particularly in emerging Asian markets. However, the company acknowledges risks related to permitting, market volatility, and metallurgical performance of new coal blends, underscoring the importance of continued technical validation and stakeholder engagement.
Bottom Line?
Bathurst’s robust reserve growth and positive feasibility outcomes set the stage for advancing key projects, but regulatory and market uncertainties remain critical watchpoints.
Questions in the middle?
- How will Bathurst manage environmental and permitting risks under the Fast Track Approvals Act?
- What are the implications of metallurgical coal quality uncertainties on market acceptance and pricing?
- How will capital funding and intercompany agreements for infrastructure development be finalized?
