PERTH (miningweekly.com) – Coal production at the New Elk mine, in Colorado, is on track to start in late April this year, with first shipments targeted for June, project developer Allegiance Coal reported.
The company told shareholders that based on production schedules, some 80 000 t of coal would be delivered to Convent marine terminal, in New Orleans, for shipments in June.
Alliance is in discussions with steel mills for the sale of spot cargoes until trial samples with selected steel mills are completed, and longer-term, index linked supply contracts have been agreed upon.
Meanwhile, the company noted that portal entries into the existing underground workings in the Blue seam were opened with no significant deterioration in underground mine infrastructure.
The equipment required for first production, including two continuous miners, three shuttle cars and one of two roof-bolters, have been refurbished at the mine. A second roof-bolter and a feeder breaker have been purchased and will be delivered to the mine in April.
The refurbishment of the wash plant and rail load-out are also nearing completion.