Birmingham Coal & Coke Co. is seeking a Section 404 Clean Water Act permit from the U.S. Army Corps of Engineers for an expanded Gooden Creek No. 2 surface coal mine in Marion and Walker counties, Ala.
The Corps is taking public comment until June 18. “The project purpose is for the proposed expansion of a surface coal mine,” said a Corps public notice. “The applicant proposes to surface area mine 417 acres, which includes the discharge of dredged and/or fill material into waters of the United States. These activities would impact 7,339 linear feet of intermittent streams, 8,304 linear feet of ephemeral streams, 0.11 acre of forested wetlands, and 1.06 acres of open water impoundments.”
The applicant proposes to compensate for unavoidable stream and wetland impacts by conducting mitigation at an off-site location in the Mulberry Fork watershed. The Corps said it has not verified the adequacy of the applicant’s mitigation statement at this time.
CanAm Coal (TSX VENTURE: COE) (OTCQX: COECF) last year acquired a 50% ownership stake in Birmingham Coal & Coke, a predominantly thermal coal producer, with a five-year option to purchase the remaining 50%. The acquisition provided CanAm access to three operating coal mines (Bear Creek, Old Union and Gooden Creek) that produce high quality thermal coal, a coal brokerage business and a stable cash flow.
An April financial filing by CanAm said that Gooden Creek covers 904 acres and has a production capacity of 180,000 tons per year. The mine’s basic coal specs are 12,900 Btu/lb, 1.6% sulfur and 5.5% ash. The report noted that Gooden Creek has 178 acres of permitted area, with proven reserves of 445,000 tons within that area, with an additional 726 acres being permitted holding another 1.9 million tons of proven reserves.