Allegiance's Tenas project proves up
PERTH (miningweekly.com) – A definitive feasibility study (DFS) into the Tenas coal project, in British Columbia, has found that the project could produce some 750 000 t/y of saleable coal.
ASX-listed Allegiance Coal on Monday reported that the DFS estimated a 22-year mine for the project, extracting just 15% of the entire resource of the grater Telkwa coal resource, with the Tenas project projected to deliver some A$121.3-million in annual revenues.
The project is expected to require a capital investment of $54.3-million, and would have a pay-back period of two-and-a-half years, with the pre-tax net present value estimated at A$407.3-million and the internal rate of return at 56.9%.
The project is expected to deliver earnings before interest, taxes, depreciation and amortization of A$63.7-million a year, with all-in free on-board costs estimated at $49.7/t.
“The Tenas project is truly unique. Our two prefeasibility studies completed in 2017 highlighted to us that this project has the potential to be a very low cost producer of a product highly sought after by the steel mills,” said Allegiance nonexecutive chairperson David Fawcett.
Allegiance will now work with its joint venture partner Itochu Corporation to secure permits to mine over the next 18 months, with the aim of bringing the Tenas project into production.
Japan’s Itochu in November of last year agreed to invest C$6.6-million for a 20% interest in subsidiary Telkwa Coal, which Allegiance said would be sufficient to fund the subsidiary through to the completion of permitting.
Once the permits to mine are granted, Itochu could subscribe for additional shares in Telkwa Coal.
Meanwhile, mine developing funding options will also be explored during the permitting phase of the Tenas project.
Comments
Research Reports
Projects
Latest News
Showroom
For over 60 years, VEGA has provided industry-leading products for the measurement of level, density, weight and pressure. As the inventor of the...
VISIT SHOWROOM
AxFlow AQS Liquid Transfer (Pty) Ltd is an Importer and Distributor of Pumps in Southern Africa
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
