Bandanna Energy Limited (ASX:BND) Updates on Abbot Point Terminal Expansion at South Galilee Coal Project

Brisbane, Dec 1, 2011 AEST (ABN Newswire) - Bandanna Energy Limited (ASX:BND) wishes to advise that the South Galilee Coal Project Joint Venture, of which it is a 50% participant together with AMCI (50% and manager), that it has been unsuccessful in the award of Preferred Respondent status for the T4-9 expansion of Abbot Point as announced by the Northern Queensland Bulk Ports (NQBP) and Queensland State Government today.

However, NQBP has invited the South Galilee Coal Project JV to early discussions in order to explore other options for securing capacity at the T4-T9 Abbot Point Expansion through nominated Preferred Respondents.

The South Galilee Coal Project, which in 2010 was declared a project of State Significance, is one of four major basin projects, has significant resources and is progressing an EIS with development plans for a mine with an average product of 13.6 Mtpa over a mine life of more than 30 years.

The Joint Venture had sought a 15 Mtpa allocation in the proposed Abbot Point expansion, given that Abbot Point is considered one of ports capable of sufficient expansion to handle the expected thermal coal output for export from a number of the proposed Galilee Basin mine developments.

The South Galilee Coal Project JV is continuing its delineation exploration drilling and finalising its EIS and regulatory approvals process. Dr Shaw said "Bandanna recognises that securing fully integrated port and rail infrastructure is integral to successful coal development, as demonstrated by the company's Springsure Creek Project."

Contact

Dr Ray Shaw Tel: +61-7-3041-4400 Andrew Crook Mb: +61-419-788-431