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Allegiance receives interest in its Telkwa project from Asian steel mills

Published by , Editor
World Coal,

The British Columbia government has granted Allegiance Coal Ltd permits to commence its drill programme in relation to its Telkwa metallurgical coal project. This will enable the company to supply metallurgical coal for drum and coke oven tests to steel mills in Japan and Korea, who have recently expressed an interest in Telkwa coal for use as a semi-soft coking coal in their coke ovens and as a PCI coal in their blast furnaces for steel production.

Malcom Carson, Non-Executive Chairman, commented: “Timing could not have been better. Following a recent trip by Management to Japan and Korea for meetings with local steel mills and trading houses, where strong interest was expressed by these organisations for Telkwa coal, the Company has been granted permits to commence its drill programme from which coal can be made available to the steel mills. This sets the Company up very nicely for calendar year 2018 and expediting the Project towards permitting and production”.

The company had previously filed a notice of works application with the British Columbia government to undertake a drill programme from which the company would:

  • As part of its discussions with joint venture and off-take partners, take coal core from drill holes for: sampling to update its coal quality database; and Drum and coke oven tests by steel mills.
  • As part of its environmental baseline studies and ongoing environmental assessment, the company would install several ground water wells; and undertake geotechnical rock analysis for mine design and geochemical rock analysis for waste management planning.

The drill programme has now been approved by the government and will commence in 1Q18 with coal assays expected to be received and results released in 2Q18.

The holes will be drilled in the project’s Tenas pit where 50% or 21 million t of the project’s saleable coal reserves are located. The Tenas pit will be the sole focus of the company’s feasibility study in 1H18, and the company’s applications for permits to mine 240 000 saleable coal tpy.

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