For economic and practical reasons, coal will be with us for the indefinite future COAL: affordable, reliable and essential by Ellsworth Dickson Trial mining and coal processing operations at the Fortune Minerals Mount Klappan Coal Project in northern British Columbia. Photo courtesy Fortune Minerals Ltd. COAL HAS BEEN USED for cooking and over two centuries at our current rate of of the rank scale and is the most valuable. heating for over 4,000 years and still plays consumption. Anthracite is found almost exclusively in an indispensible role in many countries Coal is the altered remains of ancient veg- northern British Columbia and Yukon. where it is the only realistic fuel or energy etation that accumulated in peat bogs and While coal has been criticized from an option. This is because coal, the most swamps. Called the first coal age, the for- environmental standpoint, carbon capture abundant and economical fossil fuel on mation of coal began in the Carboniferous and storage may provide the potential to earth, is found in at least 70 countries. Coal Period 360-290 million years ago. Over the reduce carbon dioxide emissions from coal currently provides over 23% of global millions of years, the effects of pressure use to almost zero. Below are summaries of primary energy requirements. It gener- and temperature transformed this organic various coal projects. ates about 39% of the world’s electricity substance into the various grades of coal. and nearly 70% of global steel production The type or classification of coal is known CanAm Coal Corp. [COE-TSXV] is a coal depends on coal. Coal-fired plants are the as its rank, which depends on the degree producing and development company. most important sources of fossil-fuel gen- of change the peat underwent. Low rank CanAm has completed two acquisitions erated electricity in Canada. In addition, coals, such as lignite and sub-bituminous during the past year: gaining control of Canada exports over 28 million tonnes of coals are soft with a low energy content. RAC Mining LLC, a predominantly metal- coal annually to over 20 countries. Higher rank coals such as bituminous and lurgical coal producer, and acquiring a Worldwide, proven reserves of coal are anthracite contain more carbon and pro- 50% ownership stake in Birmingham Coal over 1 trillion tonnes – enough to last for duce more energy. Anthracite is at the top & Coke Inc., a predominantly thermal coal 50 www.resourceworld.com SEPTEMBER 2011 producer. The company now has an own- exploration leases located within the Hinton which hosts an indicated resource of 29.5 ership stake in four producing coal mines, region of Alberta. The company’s flagship million tons. The company also added 9.04 one development mine, permits and leases project is the Vista Coal Project which has million tons of indicated coal resources at covering about 5,000 acres, and over 110 the potential to be one of the largest export its Winner property. employees. Development assets include thermal coal mines in North America. The EastCoal Inc. [ECX-TSXV], through its exclusive rights to a proprietary coal-to- Vista Coal Project contains over 20 km of subsidiaries, Ukraine Energy and EastCoal liquids technology, which converts coal continuous, gently-dipping, strike length Company, owns the Verticalnaya Coal into liquid fuels; the Buick Coal Project and a measured and indicated resource base Mine located in southeast Ukraine which has significant coal resources. Operations of over 985 million tonnes of low sulphur, it plans to re-open on a significantly and assets are in Alabama and Colorado. high volatile bituminous, export quality expanded basis. Following the start of Cardero Resource Corp. [CDU-TSX] thermal coal. A recently completed pre-fea- de-watering the lower levels of the main has a 75% interest in the Carbon Creek sibility study defined an initial marketable Verticalnaya shaft mine, the company is Coal Project, an advanced-stage metal- reserve of over 260 million tonnes. now rehabilitating some 120 metres of lurgical coal development project in the Colonial Coal International Corp. previously flooded roadways. EastCoal is Peace River Coal Field, northeast British [CAD-TSXV] is a Vancouver, BC-based min- also planning to mine a bulk sample from Columbia. The project has NI 43-101 com- ing development company specializing in the H8 seam, to be carried out whenever pliant measured and indicated resources metallurgical coal. The company currently de-watering and rehabilitation permits. A of 114 million tonnes with an additional has 100% interests in two resource-stage 400 tonnes-per-hour barrel washer plant is 89 million tonnes inferred. This summer’s coal properties in the Peace River Coal being constructed in England for installa- drilling is designed to increase the mea- Field in northeast British Columbia. tion by the first quarter of 2012. This will sured component of the resource, leading Compliance Energy Corp. [CEC-TSXV] process the coal to be produced from the to a new resource estimate and preliminary has coal interests in British Columbia. H11 seam until a central processing plant, economic assessment in late 2011. Through the Comox Joint Venture, the com- servicing both the H11 and H8 seams is Cline Mining Corp. [CMK-TSX] recently pany owns 60% of the Raven Underground installed in 2014. shipped its first commercial sale of metal- Coal Project and is the manager and operator Fortune Minerals Ltd. [FT-TSXV] is lurgical grade coking coal from its coal of the joint venture. The semi-soft, cok- focused on the development of its Mount mine located near the town of Trinidad in ing coal resource is NI 43-101 compliant Klappen anthracite metallurgical coal southern Colorado. The coal was transferred and consists of 72 million tonnes of mea- project in northwest British Columbia to into rail cars from the company’s newly sured and indicated resources, as well as, production. The recently announced joint constructed bulk rail load-out facility at 59 million tonnes of inferred resources. The venture agreement between its wholly- Jansen Yard, near Trinidad. A coal market- Raven Project is 82 km from a deep water owned subsidiary, Fortune Coal Ltd., and ing program is in full effect to establish and ocean port, and is a near term producer POSCO Canada Ltd. and its wholly-owned settle long term customer relationships. favourably located near power and transpor- subsidiary, POSCO Klappan Coal Ltd., to Bulk samples of the product coal are being tation corridors. Compliance has received an advance the Mount Klappan coal project produced and distributed to the major exploration permit from the Government of to production, has now closed. POSCAN’s national and international steel industry BC’s Ministry of Energy and Mines for the parent company, POSCO is based in South participants. Cline also owns the Lossan its New Island Copper Project 10 km south- Korea and is one of the world’s premier Coal Mine Project in northeastern British west of Port Alice, BC. steel producers. Columbia. Lossan coal is metallurgical (steel Corsa Coal Corp. [CSO-TSXV] has com- Mount Klappan hosts 2.8 billion tonnes making) coal with two grades – coking and menced mining operations at its Casselman of high rank anthracite coal, making this pulverized coal injection. An independent underground mine in Pennsylvania, its first one of the largest undeveloped deposits NI 43-101 report shows an in-place raw coal underground operation. The Casselman of metallurgical coal in the world. About resource of 239.6 million tonnes. Lossan is Mine has an indicated resource of 16.3 $86 million was spent to develop this asset, near rail service to year round Ridley Island million tons of coal. The first truckloads including $65 million by Gulf Canada Pacific international tide-water coal terminal of coal from the mine have been shipped Resources before being taken over by at Prince Rupert, BC. to, and successfully processed at the com- ConocoPhillips. A positive definitive feasi- Coalspur Mines Ltd. [CPT-TSX; CPL- pany’s coal preparation plant in Somerset bility study has been completed, and over ASX] is a coal exploration and development County, Pennsylvania. Corsa recently 200,000 tonnes of coal was test mined from company with over 33,200 hectares of coal purchased the Alumbaugh coal property the Lost Fox and Hobbit Broatch deposits SEPTEMBER 2011 www.resourceworld.com 51 for pilot plant processing and trial cargos Natal province of South Africa. mately 20 km north of the Baitag Chinese of 100,000 tonnes of finished coal prod- Goldsource Mines Inc. [GXS-TSXV; border and 3 km west of the Olonbulag ucts to customers in North America, Asia G5M-FWB] has discovered one of Canada’s coal deposits. In addition, Lucky Strike has and Europe. The project is in the environ- most promising new coal deposits in eastern planned a 1,500-metre, due diligence drill- mental assessment process to develop a 3 Saskatchewan and, to date, has outlined coal ing program on the CN coal properties in million tonne-per-year mine and process resources of more than 170 million tonnes of Mongolia with camp setup and mobiliza- plant and a new road to the highway and good quality, sub- bituminous thermal coal. tion of equipment under way since August the port of Stewart, BC. The summer drill program, at its 100%- 10. Lucky Strike signed definitive agree- EmberClear Corp. [EMB-TSXV], in owned Border Project near Hudson Bay, ments to acquire an 80% interest in the CN addition to acquiring coal projects, is also Saskatchewan is designed to test several coal properties, subject to the completion developing the Good Spring Integrated geophysical anomalies for potential expan- of legal and technical due diligence and Gasification Combined Cycle (IGCC) facilities sion of coal resources.