Skip to main content

Allegiance Coal provides update on its Canadian Telkwa project

Published by
Global Mining Review,

Allegiance Coal Limited has provided an update on progress relating to its review of the Staged Production Pre-Feasibility Study (Staged Production PFS) the results of which were released to the market in July 2017.

On delivery of results to the market, the Board’s immediately shift their focus toward things like, undertaking a review of the stage production with particular focus on the reduction of up-front capital and deliver the study focused solely on a 250 000 tpa saleable coal operation to support an application for a Sub-EA permitting process, for completion in early 2018.

Allegiance Coal is an Australian company bringing a metallurgical coal mine into production in British Columbia, Canada. The Telkwa metallurgical coal project is the Company’s flagship project comprising 148Mt of JORC compliant coal resource of which 131Mt is in the Measured Category.

As advised in the PFS Release the relevance of 250 000 tpa in Stage 1 derives from British Columbia mining and environmental legislation. A coal mine producing less than 250 000 tpa of saleable coal does not trigger a review under the British Columbia Environmental Assessment Act (Sub-EA) and does not trigger a Federal Government review under the Canadian Environmental Assessment Act potentially leading to a less complex and quicker permitting process and shorter timeline to production.

The company has since completed the Staged Production PFS review, and has announced they have achieved a material reduction in the Stage 1 start-up capital, originally estimated at US$51 m, currently estimated at US$36 m.

SRK Consulting Inc, were responsible for the Staged Production PFS and have again been retained to prepare the Stage 1 PFS for Allegiance Coal. SRK are incorporating the reduced capital expenditure into the 2 Stage PFS, and the company will quantify and explain the reductions in its market release of the Stage 1 results.

Likewise, given the ease and speed at which the Company was able to complete the Staged Production PFS review, the Company can now expedite completion and delivery of the Stage 1 PFS. Previously the Company had announced to the market that the Stage 1 PFS would be completed and delivered in Q1 2018.

Read the article online at:

You might also like


Embed article link: (copy the HTML code below):


This article has been tagged under the following:

Coal mining news Canadian mining news