PERTH (miningweekly.com) – Australia-listed junior Tigers Realm Coal has been granted a mining licence for Project F at its Amaam North project, in Russia.
“It has taken Tigers Realm less than two years from the start of exploration on Project F at Amaam North to being granted this mining licence. Passing this most important of milestones in such a short timeframe is an outstanding outcome and paves the way for development of the project in the shortest of timeframes,” said CEO Craig Parry.
The mining licence has been granted for a period of 20 years, starting on December 2.
Based on a planned production of about one-million tonnes a year of coking coal, over an 11-year mine life, the project was expected to have an openpit free-on-board cash cost of $68.50/t. Post ramp-up, and from 2018 onwards, the project would have a free-on-board cash cost of $65/t.
A bankable feasibility study (BFS) estimated that a capital injection of about $121.7-million would be required to establish the operation, with the life-of-mine capital costs estimated at $133.3-million.
Initial thermal coal products would be transported to the port via a winter ice-road in the first half of 2016.
“With the BFS demonstrating a strong case for investment and project financing discussions ongoing, Tigers Realm’s evolution from explorer to developer and to producer is moving rapidly,” Parry said.
The company was expecting all permits to be in place by mid-2015, allowing for production to start in the second half of 2015, subject to funding availability.