Just got back from the Riversdale presentation, would have been earlier but apparently my invitation got lost in the mail.
Good turnout I would say roughly 100 people, the folks from Riversdale gave a little back ground about themselves, explained why they were here and then answered a few questions. They made it clear that nothing is guaranteed and best case scenario they will start production in 2017 if everything goes perfectly. (Very much in line with my previous comments of 5-10 years).
Either way I do not believe our community can lose, hopefully this will bring some economic activity to our town. Unfortunately it will not increase our tax base due to being in Ranchlands, but the people will live here, put their kids in our schools and spend their money in our local businesses those are good things.
Yes I think these people are here to take advantage of our resources and make lots of money, that is a good thing healthy companies create good jobs.
Note: One comment I found interesting from Mr Dann (Spelling?) was his comments about how he has been coming here for a while and that just a few months prior to purchasing the land he gave the Mayor a courtesy call to see how accepting he felt the community would be about them coming here. Certainly took the bite out of the assumption some people have been making that Mayor and Council have been working on this for a long time and were very instrumental in bringing them here.
Either way good to see them in our community and hopefully 5-10 years from now the coal industry will return to the Crowsnest Pass.
Showing posts with label Grassy Mountain. Show all posts
Showing posts with label Grassy Mountain. Show all posts
Wednesday, February 6, 2013
Monday, January 7, 2013
Crowsnest Pass major announcement.
Well the press release is a little late this information has been on the blogs for the last couple of days and the Pass Herald facebook site since Saturday but never the less still good news. For more on this story John Pundyk wrote an excellent article available in both the Pass Herald and the Elk Valley Herald.
Riversdale Resources Limited Enters Into
Agreement to Acquire Coking Coal Development Portfolio in Canada
Riversdale Resources Limited, a public unlisted entity based in Sydney,
Australia, has entered into an agreement to acquire a
portfolio of coal assets from Devon Energy and Consol Energy
located in the Crowsnest Pass area of southwest Alberta, Canada.
The portfolio, comprising over 35,000 acres in
total, includes the Grassy Mountain Project located near the
towns of Blairmore and Coleman and adjacent to a large capacity rail system
already established for coal transport to the existing west coast ports
of Westshore Terminal near Vancouver and Ridley near Prince
Rupert Sound. Grassy Mountain is an advanced project that has been
the subject of substantial exploration and feasibility work including
approximately 364 drill holes, two trial pits and a 54,000 tonne bulk
sample. Currently Grassy Mountain has a Canadian 43-101
resource of 192 million tonnes and a reserve of 55 million
tonnes although Riversdale sees the potential to expand this
further. Additionally, Grassy Mountain is located in a Category 4
zone under the Alberta Coal Development Policy.
A earlier feasibility study for
Grassy Mountain outlined a open pit development plan to
produce approximately 2 million tonnes per annum of both metallurgical and
thermal coal over a 28 year life with moderate upfront capital and an FOB cash
cost for the first 12 years of US$85 – US$90 per
tonne. Riversdale has been working with Norwest Corporation from
Calgary, McElroy Bryan from Australia and two recognised Australian based coal
quality consultants in undertaking its review of the portfolio. As a result,
Riversdale has commenced work to evaluate the potential for a 4 million
tonne per annum mine producing primarily a hard coking coal with a
secondary PCI product. Riversdale believes such a project will be possible
through the use of modern coal mining and washing techniques which have
advanced significantly since the earlier feasibility work.
In addition to Grassy
Mountain Riversdale has acquired the Bellevue, Adanac and Lynx coal exploration
leases which currently contain an additional 160 million tonnes
of estimated resources and an extensive package of freehold land
accumulated by the vendors over the past 30 years. The portfolio provides
Riversdale an exciting opportunity to look at multiple developments in the
region which has a long history of coal mining.
Riversdale has entered into an agreement to acquire the coal
properties and freehold land assets for a total of US$ 49.5
million (A$ 47.6 million) payable by the end of June 2013. Of the
total amount, approximately US$35 million (A$ 33.6 million) is
attributable to the Grassy Mountain Project.
The Chairman of Riversdale, Michael O'Keeffe stated "the
acquisition of the Crowsnest Pass assets concludes an outstanding first year of
exploration and development for our company with a targeted program
at our Chickaloon project in Alaska identifying a number of promising coking
coal seams. The Crowsnest Pass assets will propel Riversdale into becoming a
major force in high quality metallurgical coal production from multiple
assets.”
Crowsnest Pass Mayor Bruce
Decoux is thrilled with today’s announcement.
“One of this Council’s priorities has been to broaden our economic base
and strengthen our local economy.” The
Municipality’s hard work with Riversdale is certain to generate great economic
spin off for our community and region,” says Decoux
Over the last few months
Crowsnest Pass Mayor, Council and Administration have been working to support
Riversdale and to ensure confidence in the strength and vibrancy of our
community. “We are confident that the
support we provided to Riversdale helped pave the way for this initiative to
come to fruition” said Decoux. “We are
excited that the Crowsnest Pass will soon be home to a highly reputable
international coal mining group and that all citizens in our community will
reap benefits,” added Decoux.
Background on Riversdale
Riversdale is an Australian public unlisted company with approximately
70 shareholders. The company was created by the former senior management of
Riversdale Mining Limited, an ASX company acquired by Rio Tinto Limited in
2011. Riversdale currently has a 10 year lease over the Chickaloon Coking
Coal Project in Alaska and is looking to develop a significant steel making
materials business with a focus on high grade metallurgical coal in stable
sovereign environments.
The board and senior management of Riversdale comprises:
Michael O'Keeffe (Chairman) - previously Chairman of Riversdale Mining
Limited and former Managing Director of Glencore Australia
Steve Mallyon (Managing Director) - previously Managing Director of
Riversdale Mining Limited and former Managing Director of RBC Capital Markets
Australia
Gary Lawler (Non Executive Director) - former Director of
Riversdale Mining Limited and Senior M&A Partner of Ashurst
Tony Redman (Non Executive Director) - former Director of
Riversdale Mining Limited and former Chairman of Anglo American Coal
Anthony Martin (Chief Financial Officer) - former Riversdale Mining
Limitada Country Manager (Mozambique)
Russell Dann (President, Riversdale North America) -
former Regional Director of Queensland Government Mines and
Energy Agency)
Steve Mallyon.
Anthony Martin
Managing Director
Chief Financial Officer
A media availability is scheduled for
Tuesday, January 8th between 10 am and 12 noon at the Municipal
Administrative offices. Mayor Bruce
Decoux will be available to speak on this announcement.
Steve Mallyon from Riversdale Resources will
be available to speak to media via telephone on January 8th between
2 pm and 5 pm, mountain standard time at +61 407 464 529.
The Municipality will be hosting a welcoming
reception in early February at which time
Riversdale Resources representative will be in attendance and available
to speak with media.
Sunday, January 6, 2013
Coal Mining back in the Crowsnest Pass
I am sure by now most people have read the "Earth Shattering News" on my fellow blogger's site and the follow up story announcing the Consol energy conditional sale to Riversdale Resources of the Grassy Mountain property for $24 million.
http://blog.johnprince.ca/2013/01/consol-energy-in-conditional-sale-of.html
Good news for the Pass? absolutely. Had a big chat about this last night with a number of friends and starting asking questions which led to lots of debate and more questions.
For those that do not know Grassy Mountain, it is just a few kilometers North of the golf course in Blairmore, from what I am told it was an active mine until the late 1950's (If I am making a mistake let me know). The coal rights to this area have been owned for years by Consol Energy out of Pittsburgh.
Who is Consol energy? Big American company based in Pittsburgh which own twelve mines in the Eastern US and is also a big gas producer, apparently they have been having some financial difficulties and have taken a path of selling of non-producing assets. Therefore the sale of their Western Canada assets in late December to Riversdale Resources.
http://www.melodika.net/index.php?option=com_content&task=view&id=549642&Itemid=55
Who is Riversdale Resources? Australian company set up in 2011 by two former executives from Riversdale Mining (Michael O'Keeffe and Steve Mallyon) who had sold a large mine in Africa to Rio Tinto. There goal with Riversdale Resources is to develop new projects in North America.
Does Riversdale Resources operate any mines presently? No, but in early 2012 they did acquire the exploration rights to an area in Alaska for $3 million for the nearly 10,000-acre Chickaloon coal deposit in the Mat-Su Valley. http://www.reuters.com/article/2012/01/10/australia-riversdale-coal-idUSL3E8CA36220120110
Doing a little research on this property in Alaska came across the following site http://www.castlemountain.org/ notice the name? That leads to one of the other questions thrown around about our area, will the environmentalists react to a proposed mine at Grassy Mountain? I expect there will be a lot of reaction from both environmentalists and recreation users.
How long does it take to get a mine to production? that will depend on the various government regulators, how aggressive the buyers are, market demand and how much opposition comes forth.
Looking at other new mines I can think of two examples, over in the Elk Valley we have the Bingay Creek Coal Mine 21km north of Elkford testing in 2006 determined that it had sufficient enough resources to get serious. In 2009 this property was sold to Centermount Coal Ltd which now anticipates starting construction in 2014 and production in 2016 of one million tonnes a year and going up to two million tonnes a year eventually.
Up at Hinton Coalspur as been actively working in the area since 2009 they are now in the midst of the approval process for what will eventually be one of North America's largest mines they hope to start construction this year and be in production in 2015 starting at one and a half million tonnes a year going up to eventually twelve million tonnes a year.
Timelines from these two projects above, one right next door to us and one in Hinton 5-10 years seems realistic to get to first production.
30 million tonnes does not seem like a lot of coal to be developing a mine? Your right the Bingay creek mine which is planned to max out it's volume at 2 million tonnes a year has reserves of 170 million the Coalspur operation has reserves of 1.7 billion tonnes. That either means that Riversdale is anticipating finding more coal when they do further exploration, or it's going to be a very small low producing mine.
Good thing for the Pass? that remains to be seen we will all get to judge that as the company does it's exploration and reveals it's future plans to the community. Done right absolutely we need the jobs, the tax base etc.
Will and should the local politicians get all the credit for this? The local politicians role in this issue to this point will be at most a few shaken hands and we would love to see you in our community statements. The local role will increase when and if this project unfolds.
Up to now this is all about a market place (met coal) that is anticipated to be strong for the foreseeable future, a new Australian company that is attempting to acquire coal assets in North America. Because of that strong coal market and an industry that measures profits by the billions these kinds of acquisitions are very common right now.
http://blog.johnprince.ca/2013/01/consol-energy-in-conditional-sale-of.html
Good news for the Pass? absolutely. Had a big chat about this last night with a number of friends and starting asking questions which led to lots of debate and more questions.
For those that do not know Grassy Mountain, it is just a few kilometers North of the golf course in Blairmore, from what I am told it was an active mine until the late 1950's (If I am making a mistake let me know). The coal rights to this area have been owned for years by Consol Energy out of Pittsburgh.
Who is Consol energy? Big American company based in Pittsburgh which own twelve mines in the Eastern US and is also a big gas producer, apparently they have been having some financial difficulties and have taken a path of selling of non-producing assets. Therefore the sale of their Western Canada assets in late December to Riversdale Resources.
http://www.melodika.net/index.php?option=com_content&task=view&id=549642&Itemid=55
Who is Riversdale Resources? Australian company set up in 2011 by two former executives from Riversdale Mining (Michael O'Keeffe and Steve Mallyon) who had sold a large mine in Africa to Rio Tinto. There goal with Riversdale Resources is to develop new projects in North America.
Does Riversdale Resources operate any mines presently? No, but in early 2012 they did acquire the exploration rights to an area in Alaska for $3 million for the nearly 10,000-acre Chickaloon coal deposit in the Mat-Su Valley. http://www.reuters.com/article/2012/01/10/australia-riversdale-coal-idUSL3E8CA36220120110
Doing a little research on this property in Alaska came across the following site http://www.castlemountain.org/ notice the name? That leads to one of the other questions thrown around about our area, will the environmentalists react to a proposed mine at Grassy Mountain? I expect there will be a lot of reaction from both environmentalists and recreation users.
How long does it take to get a mine to production? that will depend on the various government regulators, how aggressive the buyers are, market demand and how much opposition comes forth.
Looking at other new mines I can think of two examples, over in the Elk Valley we have the Bingay Creek Coal Mine 21km north of Elkford testing in 2006 determined that it had sufficient enough resources to get serious. In 2009 this property was sold to Centermount Coal Ltd which now anticipates starting construction in 2014 and production in 2016 of one million tonnes a year and going up to two million tonnes a year eventually.
Up at Hinton Coalspur as been actively working in the area since 2009 they are now in the midst of the approval process for what will eventually be one of North America's largest mines they hope to start construction this year and be in production in 2015 starting at one and a half million tonnes a year going up to eventually twelve million tonnes a year.
Timelines from these two projects above, one right next door to us and one in Hinton 5-10 years seems realistic to get to first production.
30 million tonnes does not seem like a lot of coal to be developing a mine? Your right the Bingay creek mine which is planned to max out it's volume at 2 million tonnes a year has reserves of 170 million the Coalspur operation has reserves of 1.7 billion tonnes. That either means that Riversdale is anticipating finding more coal when they do further exploration, or it's going to be a very small low producing mine.
Good thing for the Pass? that remains to be seen we will all get to judge that as the company does it's exploration and reveals it's future plans to the community. Done right absolutely we need the jobs, the tax base etc.
Will and should the local politicians get all the credit for this? The local politicians role in this issue to this point will be at most a few shaken hands and we would love to see you in our community statements. The local role will increase when and if this project unfolds.
Up to now this is all about a market place (met coal) that is anticipated to be strong for the foreseeable future, a new Australian company that is attempting to acquire coal assets in North America. Because of that strong coal market and an industry that measures profits by the billions these kinds of acquisitions are very common right now.
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