The U.S. Bureau of Land Management will be making available a draft environmental assessment on a lease-by-application from Wasatch Natural Resources LLC for a new coal reserve tract next to the in-development Kinney deep coal mine in Utah.
BLM’s Price Field Office will hold a July 31 public hearing to receive comments on the EA, Fair Market Value (FMV) and Maximum Economic Recovery (MER) of the coal resources for the Long Canyon Coal Lease Tract.
The lands included in the Long Canyon Coal Lease Tract are located in Carbon County, Utah, approximately one mile north and east of Scofield, on private surface with federally administered minerals. The areas contain approximately 5,586.9 acres, said BLM in a notice to be published in the July 9 Federal Register.
The Long Canyon Coal Lease Tract has two minable coal beds; the Hiawatha and the UP beds. The minable portions of the coal beds in this area average 10.5 feet in thickness for the Hiawatha and average six feet in thickness for the UP. The applicant has proposed to mine the underground coal reserves with continuous mining equipment.
The tract is estimated to contain around 40.5 million tons of recoverable high-volatile B bituminous coal. The average coal quality, on an “as received basis,” in the Hiawatha coal bed is as follows: 12,056 Btu/lb. 9.5% moisture, 6.1% ash, 40.8% volatile matter, 46% fixed carbon and 0.65% sulfur. Specs for the UP coal bed are as follows: 12,200 Btu/lb, 9.5% moisture, 5.9% ash, 40.4% volatile matter, 45.6% fixed carbon and 0.6% sulfur.
Australia-based New Horizon Coal Ltd. (ASX: NHO) said May 28 that it has engaged Headwaters MB of Denver, Colo., to advise on the financing of the Kinney underground coal mine project. Headwaters will add valuable advisory experience to the project and will create a detailed plan to secure project financing, New Horizon said. Headwaters will leverage its wide access to capital through its merchant banking arm and family office capital to explore debt and equity financing options for the project. Headwaters will also explore possible joint venture, merger and acquisition activities that would enhance the value of New Horizon and the Kinney Coal Project.
New Horizon is focused on becoming a producer of high-quality thermal coal, with a target of becoming a mid-tier North American coal mining company. Through its U.S. subsidiary, Wasatch Natural Resources, the Kinney Coal Project was acquired in late 2011. Kinney involves underground mining of two major coal seams using multiple, continuous miner sections in a room-and-pillar mining operation. Entry will be via an exposed coal seam outcrop within the already permitted area.
New Horizon has engaged consultant John T. Boyd Co. to complete a Bankable Feasibility Study, with completion expected by the end of 2013.