Australia’s Tigers Realm Coal (TIG) has raised its stake in the Amaam coking coal project in Russia from 60% to 80%, and expects first production from the project in 2015.
TIG has renegotiated the terms of its agreement with Bering Coal Investments Ltd to increase its ownership in the Amaam coking coal project to 80%. The new terms remove the requirement to complete a bankable feasibility study (BFS) as part of the earn up from 60% to 80%.
In March, Tigers Realm increased its stake in Amaam from 40% to 60% after receiving a mining license to develop the project. The project comprises two tenements - Amaam and Amaam North.
Tigers Realm said it will now focus on advancing the prefeasibility study (PFS) for the project with a view to getting Amaam North into production by the second half of 2015 at a rate of 1 million tpa of coking coal. First shipments from the project are planned for H1 2016.
Development of the Amaan tenement will see total production from the Amaam project increase to 6.5 million tpa. However, Tigers Realm does not yet have a production timeline for its development.
Capital cost to initial production is estimated at US$ 52 million and modelled average FOB cash cost is US$ 75/t of saleable product, making it one of the lowest operating cost, export coking coal mines in the world.
The Amaam tenement is located within 30 km of a proposed deepwater port and is only eight days away by ship to China, South Korea and Japan.
The Amaam North tenement is located approximately 30 km from the Beringovsky port on the Bering Sea coast in Chukotka.
Adapted from press release by Katie Woodward
Read the article online at: https://www.worldcoal.com/coal/23102013/tigers_realm_coal_increases_russian_stake_175/
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