Novadx kicks Tennessee coal mine into first production

Canada-listed Novadx Ventures Corp. (TSX VENTURE:NDX) announced Feb. 9 that development at its Rex No. 1 deep mine in Tennessee is nearing completion and that raw coal shipments have started to two customers on a trial basis.

The company said it has established three operating faces and is now continuously mining raw coal on a single shift per day basis, in addition to rehabilitating the original mine airways. Operating so far is a continuous miner and related equipment with a beltline to transport mined coal to the surface.

Novadx CEO Neil MacDonald said about the trial coal shipments: “This demonstrates the demand for our high quality coal in our target markets and enables us to work towards long term contracts as we near commercial production at the Rex No. 1 mine.”

These initial shipments are being made to customers who can process the raw run-of-mine coal for resale as a finished product into Novadx target markets. Novadx is in the late stages of working with the U.S. Office of Surface Mining (OSM) in Tennessee on a permit amendment which will allow for the installation of a coal preparation facility at the mine site. Tennessee doesn’t have its own state mine permitting program, leaving that job to OSM.

Novadx said it now intends to complete the mine rehabilitation and establish seven operating faces to support commencement of full commercial production at Rex No. 1. The mine will produce a high quality coal for the metallurgical, silicon metal and industrial stoker coal markets.

Rex No. 1, located in Campbell County, is listed with the U.S. Mine Safety and Health Administration under the TIACME LLC unit of Novadx. MSHA data shows the mine getting a production start in the third quarter of 2011, with 325 tons produced that quarter and 1,623 tons turned out in the fourth quarter.

Novadx is a Vancouver-based mining investment company. Through its wholly owned subsidiary, Novadx’s primary focus is to invest its capital to acquire and develop companies with active or near production high quality coal reserves in Appalachia. Novadx said it is actively evaluating a number of high quality coal acquisition opportunities.

About Barry Cassell 20414 Articles
Barry Cassell is Chief Analyst for GenerationHub covering coal and emission controls issues, projects and policy. He has covered the coal and power generation industry for more than 24 years, beginning in November 2011 at GenerationHub and prior to that as editor of SNL Energy’s Coal Report. He was formerly with Coal Outlook for 15 years as the publication’s editor and contributing writer, and prior to that he was editor of Coal & Synfuels Technology and associate editor of The Energy Report. He has a bachelor’s degree from Central Michigan University.