Name of the Project
Elan hard coking coal project.

Location
Southern Alberta, in Canada.

Project Owner/s
Atrum Coal.

Project Description
An updated scoping study has incorporated the recent Isolation South resource upgrade into an enlarged and enhanced mine schedule for the Elan project, which also displaces all Elan South mining to drive project simplification, permitting efficiency and development fast-tracking.

However, there is potential for Elan South to be permitted and mined in the future as an expansion development and/or mine life extension for the Elan project.

Total Elan project resources are currently 486-million tonnes, comprising measured resources of seven-million tonnes, indicated resources of 228-million tonnes and inferred resources of 252-million tonnes.

The updated scoping study envisages a nameplate mining and processing capacity of ten-million tonnes a year run-of-mine for six-million tonnes a year of hard coking coal product.

Total run-of-mine coal has increased from 126-million tonnes to 187-million tonnes.

Initial life-of-mine has increased from 15 years in the April 2020 scoping study to 21 years in the updated November 2020 scoping study.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project’s after-tax net present value has increased from $860-million, at a 9% discount rate, in the scoping study to $1.4-billion in the updated scoping study.

The internal rate of return has also increased from 25% in the April 2020 scoping study to 28.8% in the November 2020 updated scoping study. The payback period has decreased from 4.4 years from first production in the April 2020 scoping study to 3.7 years in the updated scoping study.

Capital Expenditure
Total preproduction capital expenditure has increased by $90-million, from $683-million in the April 2020 scoping study to an estimated $773-million in the November 2020 updated scoping study.

Planned Start/End Date
Not stated.

Latest Developments
Atrum Coal has announced that it will pause the prefeasibility study for its Elan project, after the government of Alberta decided to reinstate the previously rescinded Coal Development Policy for Alberta.

The policy dictates the condition for coal leasing, exploration and development, and prohibits future coal exploration approvals on particular land types.

The proposed Elan project is located on land designated as Category 2 under the coal policy, referring to land not normally considered for openpit coal mining, unless appropriate environmental stewardship is applied.

Further, the Minister of Energy has also issued a directive to the Alberta Energy Regulatory (AER) that no mountaintop removal will be permitted, and that all restrictions under the policy categories will apply, including all restrictions on surface mining in Category 2 lands, and that all future coal exploration approvals on Category 2 lands will be prohibited, pending widespread consultation on a new coal policy.

“We fully accept the Alberta government’s reinstatement decision. We also welcome a consultation process that is rigorous, inclusive and transparent," Atrum MD and CEO Andrew Caruso has said.

Caruso has added that the company is looking forward to the opportunity to present how modern, sustainable mining and land-use practices will enable Alberta to unlock the valuable hard coking coal resource at Elan while protecting its environment and waterways.

Atrum announced in March 2021 that Argonaut Capital and Shaw and Partners had withdrawn from an underwriting agreement, signed in December 2021, for the exercise of all listed Atrum options. The agreement was terminated as a result of the Alberta government’s reinstatement of the coal policy.

Key Contracts, Suppliers and Consultants
Palaris Australia (coal technical consultant).

Contact Details for Project Information
Atrum Coal, tel +61 3 8395 5446 or email info@atrumcoal.com.