Novadx nears approval for wash plant at Tennessee coal mine

Canada-listed Novadx Ventures Corp. (TSX VENTURE: NDX) said April 4 that the U.S. Office of Surface Mining has issued a notice of technical adequacy on the company’s application to revise its permit to build and operate a coal wash facility at its Rex No. 1 mine in Campbell County, Tenn.

The state of Tennessee doesn’t have “primacy” over coal mine permitting within its borders, so that job is handled by OSM. In most other coal states, a state agency handles permitting.

This notice means that that company’s application for wash plant at Rex No. 1 has met all regulatory technical requirements. The company said it expects to shortly receive notice from OSM confirming the reclamation bond amount the company will be required to post. Novadx expects that the final permit revision will be issued by the OSM shortly after that bond is posted.

The wash plant design covers processing of up to 250 tons/hour of raw run-of-mine coal. The design plan is complete and currently out for commercial bid and the company expects the wash plant to be operational in the third quarter of this year.

Novadx recently updated the coal resource estimate at the in-development Rex No. 1 mine to include 38.1 million tons of measured and indicated resources and 9.6 million tons of inferred resources in place. The estimated reserves include 11.3 million recoverable tons of proven and probable reserves which, based on current plans, will support over a 20-year mine life.

The Rex coal is a high-quality, low-ash coal which the company intends to sell primarily to the silicon metal, ferrosilicon and other specialty markets where pricing tends to be less volatile while commanding a premium to typical metallurgical coal prices.

Rex No. 1 is a long-shut deep with a U.S. Mine Safety and Health Administration registration that dates back to 1981. The mine is currently listed with MSHA under Novadx affiliate TIACME LLC.

Novadx, through its wholly owned subsidiary MCoal Corp., acquires and develops coal projects with high-margin, high-quality reserves in the Appalachian coal fields. MCoal operates the producing Rosa coal mine in Blount County, Ala., and is developing Rex No. 1.

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.