Vancouver — An updated feasibility study tabled by Globaltex Industries (GTX-V) has given the green light to the Pine Valley coal project in British Columbia.
Completed by consulting firm Norwest, the report projects a cumulative after mineral tax cash flow of $85 million over the operations 14-year life. At a 5% discount, the net present value pre-tax return tallies $51 million, generating an internal rate of return of just under 27%.
“This is an exciting report that underscores the validity of the many years and hard work that has gone into developing Pine Valley,” says the company’s President, Mark Fields. “There is now no question that the Pine Valley coal project is viable, with an attractive rate of return founded on low operating costs, modest capital requirements and improving metallurgical coal prices.”
The feasibility study envisions an open-pit operation cranking out 950,000 tonnes of coal per year. The strip ratio comes in at 4.4-to-1 and operating and processing costs hit $25.1 per tonne.
Earlier this year, Pine Valley Coal, owned 66.7% by Globaltex and 33.3% by Mitsui Matsushima, became the first new mine in 20 years to ship coal from British Columbia. The operation shipped 84,376 tonnes of coal under contract to a Japanese steel maker.
Be the first to comment on "Globaltex eyes BC coal"