Atlantic Coal plc said Sept. 26 that it has worked out an extension of its lease option agreement with Reading Anthracite Co. over the fully-permitted 410-acre Pott & Bannon anthracite mining property in New Castle Township, Schuylkill County, Pa.
Further details of the lease option are in an announcement made by the company on Jan. 3. The extension has been agreed without Atlantic Coal being required to make any further payments to Reading Anthracite. Atlantic Coal now has until March 27, 2013, to exercise the lease option. The US$250,000 escrow payment made by Atlantic Coal to Reading Anthracite in January remains in an escrow account and is repayable to Atlantic Coal if it doesn’t exercise the lease option.
Atlantic Coal Managing Director Steve Best said: “I am pleased that we have been able to agree an extension to the option over the Pott & Bannon mine. This extended period will enable us to complete our due diligence to a high standard and importantly we are making good progress in that regard.”
The Jan. 3 announcement said this property is estimated to contain reserves of 12 million tons of run of mine coal, with 4.1 million tons of clean coal. The Pott & Bannon site is located 25 miles from Atlantic Coal’s existing Stockton anthracite mining operation.
U.S. Mine Safety and Health Administration data shows that Atlantic Coal’s Stockton strip mine, operated under subsidiary Coal Contractors (1991) Inc., produced 62,671 tons in the first half of this year and 100,943 tons in all of 2011.
Reading Anthracite has four strip mines and four facilities listed with MSHA, all in Pennsylvania.