November 21, 2008

Western Canadian Coal starts strategic review

The Canadian Press reported that Vancouver based metallurgical coal producer Western Canadian Coal Corp has signaled last week that it is for sale by saying that its is starting a strategic review process that could also result in alliances and acquisitions.

WCC said that "The company believes the strategic review is timely for shareholders, considering that recent business analyst reports indicate that US dollar coal prices are expected to increase next year to record price levels.”

Western Canadian said it has set up a steering committee to make recommendations on strategic alternatives. It warned that there is no assurance that the committee will make any recommendation regarding a potential transaction or any other strategic move.

After the CAD 40 million private placement of convertible debentures, WCC is aiming to move forward with its Falls Mountain and Brule developments in northeastern BC. It hopes to grow annual production from 3.4 million tonnes to over 7 million through development of its Wolverine properties and Brule and Falls Mountain projects, while reducing costs.

Western Canadian Coal has interests in several coal properties in northern and southern British Columbia and a 50% interest in the Belcourt Saxon Limited Partnership.