Name and Location
Groundhog North anthracite mining complex project, Canada.

Client
Atrum Coal.

Project Description
An updated prefeasibility study (PFS) on the Groundhog North project is being finalised.

The overall project has been designed around a resource base of 1.02-billion tonnes of anthracite.

In the updated PFS, Atrum is proposing a staged approach to development, beginning with a low-capital-cost underground mine, capable of producing up to 880 000 t/y of saleable ultrahigh-grade anthracite.

From the small-scale starter mine, numerous development paths can be selected from a staged ramp-up to a 1.6-million-tonne-a-year continuous miner operation through to a larger mini-wall operation.

The staged approach to the Groundhog North complex importantly provides the company with early cash flows, while the larger underground operations will be developed in line with infrastructure capacity.

The scaled-down starter mine will establish access to existing road, rail and port infrastructure in the local area, minimising capital expenditure through a staged approach as well.

Net Present Value/Internal Rate of Return
The project has a post-tax net present value, at a 7.6% real discount rate, estimated at $239-million and an internal rate of return of 21%.

Value
The revised PFS estimates total capital expenditure at $142-million.

Duration
None stated.

Latest Developments
The updated study, when finalised, will include subsequent development stages for the larger underground operations at the Groundhog North complex. This development approach has been well received by potential offtake investors and joint venture funding partners.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Atrum Coal, tel +61 2 8249 1884 or email info@atrumcoal.com.