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CanAm acquires Canadian coal leases in US

Steel News - Published on Thu, 12 Jul 2012

CanAm Coal Corporation said its 50% owned subsidiary Birmingham Coal & Coke has acquired the mineral and surface mining rights of three leases covering 574 acres in Alabama US.

The company said that these coal properties are located adjacent to the Old Union Mine and form part of the Old Union 2 mine complex that is currently being permitted.

Mr Tim Bergen CEO of CanAm Coal said that the acquisition of additional coal leases that are within or adjacent to the current mines is an integral part of the company\'s growth story. In addition we believe that these lands hold good quality coals that fit well within our product portfolio and are in demand by our customers.

The first of the fee simple mining rights for 5 rights acquired in Alabama spans 324 acres of which the state describes 214.49 acres as mineable with the estimated recoverable reserve quantity at 401,525.28 tonnes of coal.

The second property is referred by the company as the Baccus property and covers 170 acres in total with a management estimate of 121 minable acres. The lease has been agreed for an indefinite term until the mining and reclamation works are completed.

The third property is another state lease for 80 acres with 28 acres of minable land and for a term of 5 years.

CanAm Coal said that all the leases have been partially permitted by BCC prior to the acquisition of the fee simple mining rights and the coal on each of these permits is considered to have the same characteristics as that currently mined from the Old Union mine.

The proximate analysis has revealed an average estimate of 9% ash, 1% sulfur and 12,400 BTU per lb which are consistent with the assays reported from drilling, mine face sampling and product deliveries.

Source - Coal Energy Business


Posted By : admin on Thu, 12 Jul 2012
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