BRITISH COLUMBIA - A positive pre-feasibility study for the Raven underground coal project near Comox has been delivered to Compliance Energy Corp. of Vancouver. Pincock, Allen and Holt prepared the PFS.
Pre-construction capital expenditures are estimated at $240.1 million, with a further $32.0 million in sustaining capital. Pre-tax net present value of the project at an 8% discount is estimated to be $201.9 million, and the internal rate of return would be 20.7%
The Raven mine is planned using room and pillar mining methods with conveyor transportation to surface. An annual average of 1.88 million tonnes of raw coal will be processed on site, resulting in total average annual production of 830,000 tonnes of saleable semi-soft metallurgical and thermal middlings coal per year over a 16-year mining term. Clean coal production will range from 650,000 tonnes to 1.1 million t/y after the initial start up period and excluding the final year of mining. Construction is anticipated to commence in 2012 subsequent to the receipt of all necessary permits, with the first shipment of coal in 2013.
The coal will be transported to Port Alberni on the west coast of Vancouver Island and marketed into Asian coal markets, likely Japan and Korea.
More about the Raven underground project is posted at www.ComplianceEnergy.com.
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