BRITISH COLUMBIA – Just last week CMJ readers learned that Talisman Energy had agreed to sell its Sukunka coal project in the Peace River region to Xstrata Coal for US$500 million. Now we know how the Swiss mining giant will pay for the purchase (or most of it). It has turned around and sold a 25% interest in its British Columbia coal projects to Japan’s JX Nippon Oil & Energy for US$435 million.
Xstrata has been collecting coal properties in northern British Columbia last year when it paid C$147 million to acquire privately owned First Coal Corp. The most advanced project is the Central South target where measured resources are 15.5 million tonnes, indicated resources are 28.0 million tonnes, and inferred resources are 35.4 million tonnes.
In October Xstrata purchased Cline Mining’s Lossan metallurgical coal deposit for C$40 million. The measured and indicated resource there is 186.0 million tonnes. The Lossan deposit is surrounded by licences that Xstrata obtained with the purchase of First Coal.
The joint venture between Xstrata (75%) and Nippon (25%) includes all of Xstrata’s western Canadian coal interests. It is to be called XCBC, and it will be operated and managed by Xstrata. The Lossan deposit and First Coal properties have been combined under the new name, “Suska coal project.” The Sukunka deposit will retain its name.
Please visit XstrataCoal.com.