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Allegiance Coal completes Telkwa report

Published by , Digital Assistant Editor
World Coal,

Allegiance Coal Ltd has stated the completion and delivery of the coal marketing and price assessment report of its Telkwa Coking Coal Project, as an important component of its pre-feasibility study of the Project (PFS). Progress on the PFS is on schedule for delivery on or before 30 June 2017.

Koornhof confirmed that Telkwa coking coal would likely be sold alongside semi soft coking coals sold out of New South Wales and out of Queensland. New South Wales and Queensland provide an accurate benchmark for the pricing of Telkwa coal.

Examples of competitive coals from NSW are those produced by Whitehaven Coal Ltd and Stanmore Coal Ltd from Queensland. Koornhof indicated that the Telkwa coking coal could also be sold as a PCI coal (pulverised coal injection) by reference to mid-volatile PCI coals that are currently sold in the metallurgical coal seaborne market. Management believes this gives rise to a potential opportunity to create two higher quality products, especially in the Project’s main pit, Tenas, where the two upper seams have strong coking properties and could meet the requirements for a semi-hard coking coal, while the lower third seam has weaker coking properties but is lower in sulphur and volatiles, and therefore may perhaps be more suited to PCI. This will be assessed in the PFS.

Mr. Kobie Koornhof, principal of Koornhof, is a senior coal industry consultant with extensive international success in coal quality assessment, marketing, sales and infrastructure. He has an in-depth knowledge of the Asian, European and South American metallurgical coal and steel markets, acquired in a variety of senior roles with amongst others Anglo Coal, CONSOL/Luscar, Ausenco Sandwell, and Western Coal Corp.

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