White Energy Co. Ltd is currently reviewing its investment in its Mountainside Coal mining operations in Kentucky, US, and while considering other alternatives will seek the interest of potential acquirers of its 51% interest in the mining permits, plant and equipment.
Mountainside Coal Company Inc. (MCC) holds several coal production and exploration permits in Kentucky. A new wash plant was commissioned in 2015 and production activities have targeted the high-quality low ash coals in the region that are sought-after by silicon and ferro-silicon manufacturers. Coal sales from the permits have averaged 250 000 short tpy over the 2015 and 2016 financial years.
White Energy’s investment in MCC was predicated on a strategy of increasing yields of the specialty low-ash Blue Gem coal using its proprietary Binderless Coal Briquetting (BCB) technology to make a stoker-sized coal briquette from the lower-value coal fines. Recent test results of the coal fines at the company’s BCB demonstration plant in Cessnock however indicated that commercial production rates would be difficult to attain at current prices due to the specific characteristics of the coal fines from the Blue Gem seam.
“As these operations now fall outside of our original BCB strategy, we will actively seek interest from parties who would be interested in acquiring these assets”, said White Energy’s CEO and Managing Director, Brian Flannery.
MCC currently has additional permits in Kentucky in various stages of approval and many acres containing low ash Blue Gem coal resources that are in the initial permitting phase. Production from the mines was suspended in September 2016 while infill drilling, exploration and mine planning activities were undertaken. As the data from that drilling and exploration program is analysed, MCC will finalise the permitting process for additional permits.
Read the article online at: https://www.globalminingreview.com/mining/02052017/white-energy-reviewing-investment-in-mountainside-coal/