JOHANNESBURG (miningweekly.com) – ASX-listed coal developer Atrum Coal is currently finalising a revised prefeasibility study (PFS) for its Groundhog North mining complex, in British Columbia, Canada, which now includes a staged approach to development, employing a low-cost starter mine producing 880 000 t/y ultrahigh-grade anthracite.
Over the past year, Atrum has been updating the PFS based on additional studies and, in preparing the revised PFS, evaluated a number of small-scale starter mine options that accelerated early cash flows for minimal capital cost, maximising shareholder returns.
Atrum identified a preferred option and model, which has been incorporated into the draft development plan for Groundhog North.
“. . . [T]he updated PFS with the smaller, starter mine demonstrates the economic viability of the Groundhog North project and accelerates Atrum’s plans to achieving commercial production,” said Atrum executive chairperson Robert Bell.
“We can now proceed with detailed discussions with potential long-term buyers of Groundhog anthracite, as well as potential strategic and financial investors.”
Bell added that the supply-demand dynamic of high-grade and ultrahigh-grade anthracite used in briquettes, metals manufacture, filtration, plastics manufacture and specialty carbon products was encouraging for Atrum’s near-term entry to production.
“Global seaborne supply of anthracite has halved over the past decade, creating a structural supply shortage of anthracite,” he said.
Atrum had started engaging with potential strategic and financial investors in terms of funding the bulk sample extraction and, ultimately, subject to permitting, a small-scale starter mine development.
Atrum noted that the total capital requirement for the starter mine would be $142-million, of which 64% would be funded by third parties.