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PAK appoints Hatch to CAPEX study

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World Coal,

Pacific American Coal has appointed mining consultancy, Hatch, to complete a concept level mine infrastructure and coal processing CAPEX study for the Elko metallurgical coal project.

The study will build on the 3D mine site modelling work completed by Hatch earlier this year and will include cost estimates for key components, including the coal handling and preparation systems, the workshops, mine and site infrastructure, tailings storage, opencast mining equipment and construction costs.

The company continues to review a first-stage opencast operation at the site using a contractor and expects to present the findings of this review in the coming months. The outcome of the CAPEX study will assist with this and is expected within the next two months.

Metallurgical coal prices have increased substantially over the year, rising to US$130 per tonne. The Elko project has a JORC resource of 257.5 million t in the East Kootenay Coal Basin of British Columbia, Canada.

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