Coal Mining News

Environmental assessment milestone at Mount Klappan

The government of British Columbia has formally defined the terms required for the Environmental Assessment of the Mount Klappan Coal Project, 150 km northeast of Stewart in northwest B.C. The anthracite coal project is owned 100% by Fortune Minerals Ltd. of London, Ont. A public comment period is being held from November 27, 2006 to January 8, 2007 regarding the draft terms of reference.

Fortune Minerals is proposing to construct an open pit mine, wash plant and related infrastructure at Mount Klappan, initially to produce 1.5 million tonnes/annum of metallurgical coal products primarily for the overseas steel industry. It is also making a pre-feasibility economic assessment of having a 300-MW coal-fired thermal power plant constructed by a third party at Mount Klappan, which would use coal produced at the site.

The company has completed the fieldwork for its 2005-2006 environmental baseline studies program examining the mine site and access corridors, in support of the EA and permitting processes, working with Rescan Environmental Services Ltd. and Rescan Tahltan Environmental Consultants Ltd. This year’s program focused primarily on the proposed 100-km access road to be built for truck haulage of coal products to the port of Stewart.

For further information visit www.fortuneminerals.com or www.eao.gov.bc.ca.

Brule mine to go ahead

The board of directors of Western Canadian Coal Corp. of Vancouver approved in mid-November the development and start-up of the company’s Brule Mine on the Burnt River coal property, northeast British Columbia.

The Environmental Assessment Certificate for the Brule mine was received in mid-2006 and the company anticipates receipt of the mining permit shortly. Accordingly, Western Canadian will proceed with plans to initially develop and operate the Brule mine in a manner similar to its Dillon Mine on the same property, where the reserve is now fully depleted. The company estimates that, with minimal additional capital, production at the Brule mine could be in the range of 700,000 to 1 million tonnes of ultra-low volatile pulverized coal injection coal per year, with cash costs per tonne expected in the mid-$60s.

In a November 10 ceremony sponsored by the Ministry of Economic Development and the Canadian Manufacturers and Exporters, Western Canadian Coal was named as British Columbia’s Top New Exporter for 2006. The New Exporter award recognizes a company that has made its initial entry into an export market and achieved notable success. Learn more about the company at www.westerncoal.com.