Name and Location
Kinney underground thermal coal project, Utah, US.

Client
New Horizon Coal.

Project Description
The Kinney project is an underground thermal coal project, in central Utah, in the US. A prefeasibility study (PFS) has confirmed a 110.6-million-ton Joint Ore Reserves Committee-compliant resource, comprising 11.9-million tons in the measured category, 63.3-million tons in the indicated category and 35.3-million in the inferred category for the two underground mineable seams.

The study envisages a mine, with a 16-year mine life at a run-of-mine production level of 2.3-million tons a year. The project will be completed in three phases.

Phase 1 encompasses the initial development of the mine, including surface facilities and a continuous miner section required to start production. Capital development in this phase includes the construction of shop, office-bathhouse and warehouse facilities; the bulk of materials handling, coal preparation, waste handling and storage; as well as truck and load-out facilities sized for full production at 2.3-million tons a year. Phases 2 and 3 are primarily related to the addition of continuous miner sections to reach full production and the completion of surface facilities.

Value
Phase 1 capital expenditure is estimated at $63.08-million, Phase 2 at $36.11-million and Phase 3 at $17.65-million.

Duration
Not stated.

Latest Developments
Based on the favourable economic results of the PFS, New Horizon Coal will begin a bankable feasibility study in 2013.

Key Contracts and Suppliers
Not stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
New Horizon Coal, tel +1 412 296 1473.