Vancouver-based Colonial Coal International (TSX-V: CAD) has received the preliminary economic assessment for its 100% owned Gordon Creek metallurgical coal project located about 30 km south of Tumbler Ridge. Prepared by Stantec Consulting Services, the PEA demonstrates positive economics.
The Gordon Creek project has an after tax and royalty net present value of $690.5 million with a 7.5% discount rate. The internal rate of return will be 24.4% based on a price of $164.8 per tonne coking coal and a premium pulverized coal injection (PCI) price of $140.5 per tonne.
The project has a pre-production capex of $300 million with additional sustaining capital of $406.0 million over the life of the mine. When the project reaches commercial production, it will produce an average of 1.9 million tonnes of clean coal annually. The payback period is less than three years.
Colonial says the PEA is based on an underground mine plan that would recover 111.6 million run-of-mine tonnes with a yield of 51% to produce 57.4 million tonnes of clean coal over a 30-year life for the mine. The property contains an inferred resource of 298.0 million tonnes.
German Chancellor Angela Merkel’s cabinet approved an aid package worth as much as 40 billion euros ($44.7 billion) by 2038 for the nation’s coal regions, launching a drive to transform chimney-stack economies into high-tech centers.
The creator of one of the world's largest indoor rainforests, UK-based charity The Eden project, has partnered with aluminum giant Alcoa (NYSE:AA) to build a $150 million eco-tourism attraction at the company’s former Anglesea coal mine, in Australia.
Indian steel market remained quite subdued for the week 20 (11-18th May'19) as the prices of raw materials like Iron ore, pellet and coal have inched up a little. However, the prices of Semis & Finished long steel products slump by INR 200-900/MT (USD 3-13), as per SteelMint assessment.
Indian spot steel trades were limited during the week-19 (6th to 11th May) this in turn resulted fall in prices of mid sized mills.
Tata Steel Europe and Thyssenkrupp AG, a German multinational had signed an equal joint venture agreement in June last year to combine their steel business which had made it the region’s second-biggest steelmaker, first being ArcelorMittal.
Indian domestic steel trade activities were subdued during the week-18 (27th Apr to 04th May) as prices remained volatile amid average supply-movement.