Half Yearly Accounts
Sydney, Mar 16, 2016 AEST (ABN Newswire) - Atrum Coal NL (
ASX:ATU) (ATRCF:OTCMKTS) Directors present their report on the consolidated entity consisting of Atrum Coal and the entities it controlled at the end of, or during, the half-year ended 31 December 2015.
Principal Activities
Atrum Coal is an exploration and development company focussed on metallurgical coal projects. The Company's flagship project is the high grade and ultra-high grade Groundhog Anthracite Project (Groundhog) located in British Columbia, Canada. Other early stage projects include the Naskeena Coal Project, the Bowron River Coal Project and a joint venture on the Elan Coking Coal Project, all located in Canada.
Western Canada provides excellent opportunities in a low risk jurisdiction with well-established rail and port infrastructure. High grade metallurgical coal is a geologically scarce commodity and the majority of well-endowed, undeveloped regions suffer from inadequate rail and port infrastructure or heightened sovereign risk. Groundhog's access to established rail and port facilities that exhibit surplus capacity gives the Company FOB cost advantages over other regions that lack this access.
The Groundhog Project (which includes the Panorama area) comprises 46 granted coal licences and 40 coal licence applications. Groundhog is prospective for high grade and ultra-high grade anthracite suitable for use in the manufacture of blast furnace steel, as well as electric arc furnaces, as a reductant, filter media, and feedstock for chemical production. The Company has devised multiple mines for development in the Groundhog Coalfield, beginning with the Groundhog North Mining Complex, comprised of multiple mines feeding a common coal handling and preparation facility (CHPP).
Atrum Coal aims to produce high grade and ultra-high grade anthracite as well as ultra-low volatile PCI for supply to the export markets internationally with a focus on Japan, Korea, China and Europe as well as the Americas. The Company has determined, through discussions with parties active in European and Asian markets, that niche markets for a high-grade carbon product will also open up to the Company once Groundhog establishes itself as a reliable supplier of high-quality products.
The Company is progressing with the development of its Groundhog project including reviewing a number of options for low capital cost entry into production and various large-scale mines that establish economies of scale in mining and transportation.
The Company also continues to progress its bulk sample permit application for Groundhog which, once granted, will enable it to extract up to 100,000t in total of high grade and ultra-high grade anthracite for delivery to potential long term customers.
To view the full half year report, please visit:
http://media.abnnewswire.net/media/en/docs/ASX-ATU-756624.pdf
About Atrum Coal Limited
Atrum Coal Limited (ASX:ATU) is a metallurgical coal developer. The Company flagship asset is the 100%-owned Elan Hard Coking Coal Project in southern Alberta, Canada. Elan hosts large-scale, shallow, thick, hard coking coal (HCC) deposits with a current JORC Resource Estimate of 298 Mt (70 Mt Indicated and 228 Mt Inferred). Comprehensive quality testing of Elan South coal on samples from the 2018 exploration program, combined with review of substantial historical testwork data for the broader Elan Project, has confirmed Tier 1 HCC quality.
The initial focus for development is the Elan South area, which is located approximately 13 km from an existing rail line with significant excess capacity, providing direct rail access to export terminals in Vancouver and Prince Rupert. Elan South shares its southern boundary with Riversdale Resources Grassy Mountain Project, which is in the final permitting stage for a 4.5 Mtpa open-cut HCC operation. Around 30km to the west, Teck Resources operates five mines (the Elk Valley complex) producing approximately 25 Mtpa of premium HCC for the seaborne market.
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