Bandanna Energy Limited (ASX:BND) has inked a deal with farmers in Queensland to lease back the land it has acquired and invest in development to boost the agricultural yields.
The coal explorer says the agreement captures the spirit of the state government’s proposed Strategic Cropping Lands legislation aimed at the co-existence of mining and agricultural activities.
Managing Director, Dr Ray Shaw, says that the move shows that coexistence is the way forward.
Dr Shaw adds that mining companies can provide uplift benefits to existing landowners in areas which may be subject to mining activities in the future.
In the year ended on June 30, 2011 Bandanna Energy reported a net loss of $4.35 million.
