Coal International Plc
King Coal begins mining operations
Coal International is pleased to report that King-Coal Corporation Limited (?King Coal?), which will become a wholly-owned subsidiary of the Company should the appropriate resolutions be passed at an extraordinary general meeting on 12 December 2005, has commenced initial underground mining operations at its Gauley Eagle Property in West Virginia. The Company also expects to begin surface mining operations at Gauley Eagle in the next few weeks following receipt of appropriate permits and finalisation of contract mining documentation.
The Company will complete the refurbishment of the 900 tons per hour coal preparation plant at Gauley Eagle in mid December. King Coal expects to begin shipments of clean coal in January to steel customers and utility companies.
Separately, Maple Coal Co. Limited has completed the transfer of mining and environmental permits to it from the previous holders, and remains on schedule to commence surface mining operations in the first quarter of 2006.
Commenting on these events, W. Durand Eppler, Chief Executive Officer, said: ?We are extremely pleased with the progress the management team has made in restoring the Gauley Eagle property to active operations, and we remain confident in our efforts to establish Coal International as an important new coal producer in West Virginia.?
Coal International is targeting sales of 1.6 million tons of coal in its first full year of operation.
Enquiries
Coal International
|
W. Durand Eppler, Chief Executive |
+44 (0) 20 7409 0890 |
Parkgreen Communications
|
Cathy Malins, Annabel Leather |
+44 (0) 20 7493 3713 |
About Coal International:
Coal International was incorporated on 23 November 2004, and listed on AIM in April 2005, for the purposes of identifying, evaluating and making investments in, or acquisitions of, coal mining projects. The acquisition of near-production assets is key to the business strategy of the Company, with particular focus on those projects which the Directors believe are well positioned to exploit current commercial opportunities.
Coal International has entered into conditional agreements to acquire the whole of the issued share capital of both King-Coal and Maple Coal that it does not already own, as well as the shares of King-Coal which would arise on conversion of the King-Coal Loan Notes, for an aggregate consideration of approximately lb29.5 million.
About King-Coal:
King-Coal?s Gauley Eagle property has two surface and two underground operations with reserves of approximately 16.5 Mt of metallurgical and thermal coal. The operations are planned to produce two mtpa of clean coal with a mine life of over ten years. The operations are dependant on the 6mtpa coal preparation plant which at present is in the process of being refurbished and upgraded following scaling down operations in the late 1980s. Production is expected within three months at a rate of 80,000 tpm initially increasing to two mtpa within three years.
About Maple Coal:
Maple Coal?s Powellton property has a reserve of approximately 16.4 Mt of low-sulphur, high-quality thermal and mid-volatile coking-coals. Maple Coal is planning to produce up to one mtpa of low-sulphur thermal coal for the first two years reducing to 850,000 tpa thereafter. Initial engineering studies and permitting are currently in progress.
Annabel Leather
Parkgreen Communications
1st Floor, Ireland House, 150 New Bond Street, London, W1S 2AQ
t: 020 7493 3713 f: 020 7491 3936 m: 07779 588294
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