The Calgary, Alta.-based ELK VALLEY COAL PARTNERSHIP will proceed with the development of the Cheviot Creek pit at the Cardinal River Operations near Hinton, Alta. The initial production rate at Cardinal River will be 1.4 million tonnes/year of clean coal. The first coal production is anticipated by the end of the fourth quarter of this year. If market demand remains strong, production may be expanded to 2.8 million tonnes per year in 2005.
Elk Valley Coal has submitted its mine licence application to obtain the remaining approvals from the Alberta Energy and Utilities Board and Alberta Environment to develop the Cheviot Creek pit. Mining activities will begin in the new mining area once the mining licence approval is received. The existing workforce of 120 employees at Cardinal River Operations will complete mining of existing pits and will progressively shift to work on developing the infrastructure for the new mining area. These activities will include the construction of a private coal haul road and power line.
The capital cost to develop the Cheviot Creek pit to an annual production rate of 1.4 million tonnes is estimated at $50 million, which is expected to be largely incurred during the second half of 2004. Additional capital cost to expand production to 2.8 million tonnes per year is anticipated to be another $70 million. For more information contact Mark Gow at (403) 260-9834.