1 4 C a n adi a n M inin g J o ur n a l M a y 2014 w w w c a n adi a nminin gj o ur n a l co m C o a l in C a n ad a y e a r s Xs t ra t a o w n s 75 o f t h e D o n k in co a l p r o j e c t a n d Er den e R es o ur ce D e v e lo p m en t C o r p o w n s t h e r em a inin g 25 p er cen t A l s o m a k in g t h e n e ws wa s F o r t un e M in era l s L t d F o r t un e w h o r es u b mi t t e d i ts a p p lic a t io n f o r a n en v ir o nm en t a l a s s es sm en t f o r i ts A r c t o r s a n t hraci t e p r o j e c t in A p r i l 2013 F o r t un e c h a n g e d t h e n a m e o f i ts M o un t K l a p p a n p r o j e c t t o A r c t o r s in A ugu s t 2012 Th e p r o p os e d p r o j e c t i s lo c a t e d 160k m n o r t h e a s t o f S t e wa r t in n o r t h er n B C Th e co m p a n y p l a n s t o p r o d uce a n t hraci t e co a l f o r exp o r t a t a p r o d uc t io n ra t e o f 3 M ty A n d in J un e 2012 t h e B C En v ir o n m en t a l A s s es sm en t Of f ice a n d t h e 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de v e lo p m en t P h a s e 1 en t a i l s co mm en cin g p r o d uc t io n a t a le v e l o f 6 M ty o f b i t umin o u sg rade t h er m a l co a l a n d P h a s e 2 w o u ld in cr e a s e o u t p u t t o 12 M ty b y 2019 I n 2012 C o a l s p ur co m p let e d a f e a si b i l i t y s t ud y o f t h e V i s t a p r o j e c t t h a t iden t i f ie d a m a r k et a b le r es er v e o f o v er 313 M t f r o m a r e co v era b le r es er v e o f 566 M t Th e co m p a n y f ur t h er def in e d in a f o l lo wu p s t ud y t w o s t a g es o f de v e lo p m en t f o r P h a s e 1 S t a g e 1 w o u ld h a v e a p r o d uc t io n c a p aci t y o f 3 M ty w i t h p r o d uc t io n b eg in nin g in mid2015 a n d S t a g e 2 w o u ld add a n addi t io n a l c a p aci t y o f 3 M ty b y 2017 Th e min e lif e i s p r o j e c t e d t o b e a p p r o xi m a t e l y 30 y e a r s W i t h co a l p r o d ucer s acr os s m uc h o f C a n ad a t h e co un t r y wa s a b le t o exp o r t 348 M t o f co a l in 2012 u p 32 p er cen t co m p a r e d t o 337 M t in 2011 a n d m a k in g i t t h e w o r ld s t hir d l a r g es t co k in g co a l exp o r t er C a n adi a n co k in g co a l exp o r ts in cr e a s e d b y 11 p er cen t t o 307 M t in 2012 f r o m 277 M t in 2011 d ue t o in cr e a s e d g lo b a l dem a n d C a n ad a im p o r t e d 98 M t o f co a l in 2012 C o k in g co a l acco un t e d f o r 45 p er cen t o f i ts t o t a l co a l im p o r ts a n d t h e r es t wa s t h er m a l co a l des t in e d f o r co a lf ir e d p o w er g en era t io n a n d in d u s t r i a l u s es W hi le p r ices a r e a l wa ys a s u b j e c t o f s en si t i v i t y f o r t h e minin g in d u s t r y NR C a n f o un d t h a t in 2012 t h e b en c hm a r k p r ice f o r h a r d co k in g co a l a v era g e d US210 p er t o nn e I t s t a r t e d t h e y e a r a t US235t in t h e f ir s t q u a r t er w en t do w n t o US210t in t h e s e co n d q u a r t er r e ac h e d US223t in t h e t hir d q u a r t er a n d dr o p p e d t o US168t in t h e f o ur t h q u a r t er B a s e d o n C a n adi a n c u s t o m s r e co r d s t h e a v era g e ac hie v e d uni t va l ue in 2012 o n a f r e e o n b o a r d f o b b a s i s wa s 193t f o r co k in g co a l exp o r ts a n d 98t f o r t h er m a l co a l exp o r ts Th e a v era g e uni t va l ue in 2012 f o r C a n adi a n im p o r t e d co k in g co a l wa s 149t a n d f o r im p o r t e d t h er m a l co a l wa s 65t Th e m a j o r i t y o f do m es t ic a l l y s o ur ce d co a l wa s f r o m s oc a l le d min em o u t h o p era t io n s w hic h in v o l v e ext rac t in g co a l f r o m a min e si t e a n d t h en t r uc k in g i t t o ad j acen t co a lf ir e d p o w er g en era t io n p l a n ts t o p r o d uce e le c t r ici t y Th e m a j o r i t y o f minin g a n d p o w er g en era t io n o p era t o r s a r e en ga g e d in lo n g t er m co n t rac ts S h er r i t t t h e l a r g es t t h er m a l co a l p r o d ucer in C a n ad a r ep o r t e d a n a v era g e r e a l ize d p r ice o f 1748t in 2012 H o w e v er NR C a n s a ys t hi s p r ice i s m er e l y a r ef le c t io n o f t h e cos t o f minin g co a l a n d c a nn o t b e r ega r de d a s t h e p r e va i lin g m a r k et p r ice A s j u s t o u t lin e d co a l i s t h e p r im e t a r g et f o r m a n y min er s a r o un d t h e w o r ld p a r t ic u l a r l y t h e C hin es e a n d i t s n o w o n der b e c a u s e t h er e s s o m uc h o f i t I n fac t t h e w o r ld s t o t a l co a l p r o d uc t io n wa s es t im a t e d a t 7865 M t in 2012 o f w hic h c los e t o h a lf 46 p er cen t wa s p r o d uce d in C hin a C a n ad a h o w e v er i s n o s lo uc h a t a lm os t 67 M t Th e co un t r y ra n ks 13t h in t h e w o r ld b u t f o r a n a t io n w i t h o n l y 24 p er mi t t e d co a l min es b y co m p a r i s o n t o C hin a s 16000 p er mi t t e d o r o t h er w i s e co a l min es t h a t s a v er y im p r es si v e p l ace t o b e in t er m s o f p r o d uc t i v i t y CMJ Information pr ovided by Kevin Stone Senior Advisor Minerals and Metals Sector Natural Resour ces Canada The content is to pr ovide general informa tion It is not intended as a r efer ence guide or sug gestion to be used in trading investment or other commer cial activities The author and Natural Resour ces Canada make no warranty of any kind with r espect to the content and accept no liability either incidental consequential financial or other wise arising fr om the use of information contained in this article email kevinstonenr canr ncangcca Canadian miners go to great depths to make Canada the 13th most productive coal mining nation in the world