Bandanna Energy has secured a four million tonne per annum allocation at the proposed $2 billion Wiggins Island Coal Export Terminal development at Gladstone, Queensland.
Eight coal producers have now committed to a total allocation of 27 million tonnes per annum for stage one of the development.
The other seven are Aquila Resources, Caledon Resources, Cockatoo Coal, Northern Energy, Wesfarmers Curragh, Yancoal and Xstrata Coal.
These customers have all agreed to a deed and paid a bid bond, which confirms that they plan to sign the binding take or pay agreement to finalise capacity in April next year.
The binding agreement will guarantee each company will meet their share of funding for the first stage of the project and will help secure additional funding from other investors.
Bandana’s share of these costs is estimated at $5.9 million and the company has already provided a bid bond of $3.066 million.
“The terminal announcement was a significant milestone for Queensland coal production and a very positive step as the project moves to secure funding and commencing construction,” Bandanna managing director Dr Ray Shaw said.
The first stage of development will expand the Gladstone port facility by at least 70 million tonnes per annum by early 2014.
There are also a further two stages of development anticipated for the terminal.
Bandanna has projects with JORC resources exceeding 1.3 billion tonnes, including over 700 million tonnes in the Bowen Basin.
“Bandanna’s transition from explorer to producer has always been predicated on access to port which this decision delivers,” Shaw said.