TORONTO (miningweekly.com) – Metallurgical coal-mining hopeful Fortune Minerals on Tuesday said it welcomed a renewed effort to conclude the Klappan Strategic Initiative (KSI) between the British Columbia government and the Tahltan Nation, reaffirming its support for the provincial government’s commitment to finding a solution for responsible resource development that recognised the important cultural values in the Klappan.

The British Columbia provincial government on Monday issued a temporary order under Section 7 of the Environment and Land Use Act to defer decisions on permits and permit amendments related to existing coal tenures in the Klappan until December 1.

“We are pleased that this announcement will allow these discussions to be revived with the hope that a reasonable solution can be reached for all parties concerned. The Arctos anthracite project is currently in the British Columbia environmental-assessment process and we are waiting for a conclusion to the KSI before completing environmental field work in support of this process,” Fortune investor relations manager Troy Nazarewicz told Mining Weekly Online.

He noted that the Arctos anthracite project was consistent with the stated objectives of the 2000 Cassiar-Iskut-Stikine Land Resource Management Plan (LRMP), which identified “substantial resources of high-grade metallurgical coal”. This was recognised and agreed to by the Tahltan leadership at that time, and the LRMP received final approval by the British Columbia Cabinet in October 2000.

Nazarewicz added that more than $110-million had already been spent over 30 years to identify the unique high-quality anthracite metallurgical coal resource that was world-class in scale.

The Arctos project included test-mining sites straddling a government constructed railway and/or subgrade linking to the CN main northern line to Prince Rupert. The railway and the development of the Northwest transmission line to extend power to the area were also entirely consistent with the federal and provincial Pacific Gateway Policy to promote greater exports from the province to Asia.

“The Arctos anthracite project will create jobs and prosperity for British Columbians by producing a valuable resource suitable for steelmaking and metals processing. We are committed to developing these resources in a responsible manner. This means ensuring local communities and workers benefit from the project while minimising environmental impacts.

“It also means making sure Aboriginal groups are consulted and they have input into the project,” he said.

The Arctos project has the potential to generate $10-billion in revenues and $900-million in combined federal and provincial taxes over its life span and could provide opportunities for more than a generation of northern British Columbians.

Over 500 high-paying jobs could be created, generating about $1.3-billion in wages, and there would be employment for a further 1 000 people in supporting activities.

“We look forward to working with governments, Aboriginal groups and local communities to develop the project and make it a model of cooperation and environmental sustainability,” Nazarewicz said.

British Columbia's main coalfields lie in the east of the province, in East Kootenay and Peace River. However, one key area yet to be tapped is Klappan, in the north-west. This region hosts anthracite, which, among its various industrial uses, is the highest-quality metallurgical coal available.

Fortune Minerals’ Arctos anthracite project, which had been the subject of opposition from some Tahltan Nation members, was one of the first movers in the area.

However, the company’s summer 2013 drilling, surveying and monitoring campaign for environmental assessment was voluntarily ended in September after a Tahltan group entered the project’s camp to protest.

In December, government issued the Klappan Coal Licence Deferral Area Order, deferring decisions on any new coal licences until December 1, while the Tahltan Nation and government took the time to consider what activities were appropriate in the Klappan. This order included existing coal tenures.