Paringa Resources Limited (ASX:PNL, OTCQX:PNGZF) is an emerging US-based energy provider developing the high margin, low capex Buck Creek Mining Complex located in the Illinois Coal Basin. The Buck Creek Mine Complex includes the permitted 2.8 Mtpa Poplar Grove Mine with construction starting mid-2017 and first coal expected during the fourth quarter of 2018. Once Poplar Grove is constructed, Paringa will begin construction of the permitted 3.8 Mtpa Cypress Mine, ultimately becoming the next major Illinois Basin coal producer.
Provided below is a map of western Kentucky, location of Paringa's Poplar Grove and Cypress Mines and the extent of historical coal mining in the region.
Map of Buck Creek Complex and Local Mining Operations in Western Kentucky (Illinois Basin)
The mineral ownership of Paringa's Poplar Grove and Cypress Mines is unique for the region with Paringa leasing the coal rights from each individual farmer or surface property owner where the mineral rights have not been severed from the surface property. In other parts of the US, mineral rights to coal are generally owned by the federal government or large third party land companies, many of which severed the mineral (coal) from the surface property over one hundred years ago.
Operating coal companies then lease large tracts of coal from the federal government or third party land companies by single lease agreements. This is very different from Paringa's land position which consists of hundreds of smaller individual coal leases from local farmers and residents. The Buck Creek area was not developed by major mining companies due to the amount of work and expense required to identify and lease these many small parcels.
Since 2008, the previous vendor group and Paringa have secured a total of 304 individual leases, comprising of a total of over 510 individual property tracts and covering an area totaling almost 40,000 acres.
Production Profile of Developing the Poplar Grove and Cypress Mines (2018 to 2044)
Development Timeline of the Poplar Grove and Cypress Mines (2017 to 2021)