Regency Mines Plc has announced progress at Carbon Minerals Corporation's (CMC) Rosa metallurgical coal mine, located in the Warrior Coal Basin, Alabama, US. Regency owns 20% of CMC.
Regency also announced an agreement to invest US$150 000 for a 20% shareholding of Vali Carbon Corporation (VCC), a new Delaware company set up to pursue metallurgical coal investments in the Appalachians.
Andrew Bell, Chairman of Regency Mines, commented: "We believe that we are in the right commodity in the right place at the right time. Metallurgical coal had already seen a sharp recovery from what we believe were extreme cyclical lows at the beginning of 2016, and the new US administration has already permitted new pipeline construction and is committed to heavy infrastructure spending. We have identified with our partners a range of opportunities to ramp up production and diversify our sources of saleable coal.”
At Rosa, the sourcing of a suitable highwall mining machine enables us to plan for tripling the depth of penetration beyond that envisaged in the Reserve report, and potentially tripling the rate of production," he continued.
Regency agreed with UK Carbon Resolutions Ltd (UKCR), a company controlled by coal entrepreneur Stephen Moscicki, to invest US$150 000 in VCC for a 20% shareholding. The purpose of VCC is to put together and bring into production metallurgical coal projects in the Appalachian coal belt in the east of the US. The Appalachians have long been one of the world's largest sources of coal, and some areas contain high quality metallurgical coals.
The co-venturers in VCC have agreed within three weeks to sign a definitive shareholders' agreement with normal shareholder protections and to set an agreed budget for the coming year. Regency has a put right to UKCR should this not occur.
Read the article online at: https://www.worldcoal.com/mining/06022017/progress-made-at-rosa-metallurgical-coal-mine/