Listed Mining Companies
ADD A COMMENT PRINT 
TORONTO (miningweekly.com) – Vancouver-based Western Canadian Coal Corp (WCC) has secured sufficient sales contracts, at strong enough prices, for the 12 months ended March 2010, to continue mining at its Wolverine and Brule operations, in British Columbia.
WCC shares leapt 20,5% on Tuesday morning, to C$0,94 apiece by 10:43 in Toronto.
The company expects to produce about 1,7-million tons of metallurgical coal from the two mines, and will keep the Willow Creek mine on care-and-maintenance.
WCC has forecast an average realised price for its coal of between $120/t and $125/t in the 2010 fiscal year, and expects to ship about two-million tons of the steelmaking ingredient.
Global coal demand has been heavily affected by slowing economic activity, and several producers have indicated that they are in negotiations with customers over deferred coal shipments.
"Despite the significant curtailments taken by our customers during the current economic environment, we are pleased to achieve coal sale prices that are the second highest on record, which speaks well to the quality of our coal and the service we provide our customers,” said CEO John Hogg.
Costs are expected to decline this year, as waste rock removal carried out in 2009 at Wolverine is expected to result in an average stripping ratio in fiscal 2010 of 12:1, and the firm will also switch to owner-mining at the mine next month.
"While there is still uncertainty in the markets, we believe demand for high-quality metallurgical coal may improve as the year progresses,” Hogg said.
The company will monitor conditions and match production with demand as it changes, he said.
