Balamara Resources, an Australian mining company, has secured exclusive rights for Nowa Ruda Coal project from Polish government through its subsidiary company, Coal Holdings Sp.
With this, the company has rights to explore and develop coking coal project in south-western Poland, comprising a developed underground mine with historical production over several decades of around 1million tons per annum of coking coal.
Balara Resources is planning to undertake restructuring process after securing a major resource with company-making potential. The process includes potential divestment of its existing base metal projects in Central Europe and Australia.
Spanning over an area of 20km2, the project consists of a single lease area covering two adjacent coal deposits, Waclaw and Piast deposits and has extensive key infrastructure including roads, rail, power and water.
Balamara stated that following the completion of a feasibility study, the exploration license can be converted to a mining license.
The company expects to manage overall cost structures operating the project more commercially, and coupled with considerably higher prices for end-product as exists today this creates a significant opportunity for shareholders, added the company.