Australia’s New Horizon Coal Ltd. said July 25 that it made progress in the second quarter on its Kinney deep mine project in Utah.
Highlights for second quarter include:
- Capital Reduction Study for Kinney. Positive results from study cuts CAPEX needed to achieve first production at Kinney Coal Project by 63% to US$23m, a proposed saving of US$40m.
- Long Canyon Tract Federal Coal Lease-by-Application (LBA) Environmental Assessment (EA) report completed. With completion of the EA, 3,116 hectares of coal mineral rights now advances to a fair market value assessment hearing at the U.S. Bureau of Land Management (BLM).
- Engagement of leading investment bank Headwaters MB for project financing for Kinney. Headwaters will add valuable advisory experience to the project and will create a detailed plan to secure project financing.
The company said in the future it plans to:
- Continue to advance negotiations for coal sales off-take supply agreements.
- Continue to advance the NHO’s Long Canyon LBA to acquire by auction the coal mineral rights administered by the federal government.
- Continue work on the Kinney Coal Project Bankable Feasibility Study.
- Assess financing options and structures available for the Kinney Coal Project.
- Approach select financial group of investors with a stated interest in the mining/coal energy sector.
The Kinney project involves underground mining of two major coal seams using conventional continuous miner sections. Entry will be via an exposed coal seam outcrop within the already permitted area. The Kinney project benefits from world-class infrastructure including three class 1 rail carriers within 25 kilometers of the proposed portal, paved roads and state highway maintenance facility directly adjacent to the mine and an experienced local workforce, the company noted.
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. This tract os 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.
The Long Canyon Coal Lease Tract has two minable coal beds; the Hiawatha and the UP. 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.