Bandanna Energy Limited (ASX:BND) Update on Co-Existence Arrangements of Mining and Agricultural Activities
Brisbane, Oct 17, 2011 AEST (ABN Newswire) - As part of Bandanna Energy Limited's (
ASX:BND) commitment to ensuring future mining impacts on agricultural lands within the Springsure Creek, Arcturus and Arcadia project locations are minimised, and that these projects capture the spirit of proposed Strategic Cropping Lands legislation that is expected to address issues relating to the co-existence of mining and agricultural activities, we are pleased to announce the following:
1. Completion of an aerial laser scanning and photometric survey.
This survey has provided high quality aerial photography of current land use patterns and topographic information, to a vertical resolution of approximately 20 cm, over key project areas. This $500,000 project has provided a state-of-the-art data base against which any future mining activities can be benchmarked and future restoration/rehabilitation activities can be measured.
2. Appointment of Agricultural Management Specialists.
An agreement has been reached with Customised Farm Management Pty Ltd (CFM) to provide agricultural management advice, implementation of best land management practices, and expert advice on enhancing crop and farming techniques in order to ensure that agricultural pursuits and yields on any properties subject to future mining activities will not be impacted or that effects can be mitigated to the greatest degree possible. CFM has significant experience in broad acre farm management in northern New South Wales and the Central Queensland Tablelands, including areas in the Emerald - Springsure region.
3. Acquisition of strategic properties.
Bandanna has acquired a strategic property within its Springsure Creek-Arcturus area. Under the terms of the purchase agreement, the existing owners will enter into a lease back arrangement on favourable terms, with CFM providing management services. As part of this lease arrangement, Bandanna has undertaken to make significant capital injections into the property over the next three years in order to enhance existing farm management practices and crop yields. Increased yields, measured against historical yield data, are expected to materially increase as capital improvements and enhancements to land management practices are made. It is foreseen that as a result, total yield increases will offset any diminution of yield which otherwise might occur due to mining activities on the property. The working plan is to provide permanent yield increases across any properties which may fall within Bandanna's project footprints.
Dr Ray Shaw, Managing Director of Bandanna Energy, said the acquisition highlighted the Company's commitment to coexistence with the farming community.
"Coexistence is the way forward and what we are putting in place today will hopefully illustrate to other agriculturists in the region the potential that, with the right approach, mining companies can provide enormous uplift benefits to existing landowners, in areas which may be subject to mining activities in the future," Dr Shaw said.
Contact
Dr Ray Shaw
Tel: +61-7-3041-4400
Andrew Crook
Mb: +61-419-788-431
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