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Realm takes operations control of Foxleigh mine

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World Coal,

Realm Resources’s subsidiary, Middlemount South, has taken over operational control of the Foxleigh mine, following Realms acquisition of a 70% interest in the mine.

“The new management team has settled in and is focusing on ensuring an efficient and effective operational transition,” the company said in a release to the Australian Stock Exchange. “The team is also conducting a detailed review of the Foxleigh operations.”

As part of the review, the company is undertaking the required geological assessments and studies to verify the estimates provided by the mine’s previous owner, Anglo American. Reserve and resource estimates are expected to be completed by the end of the year.

“When completed, the company will advise the likely impact of the acquisition on the financial position of the company and any potential modifications to the acquisition plant,” Realm said.

The company also said it expected to take advantage of the increase in prices for metallurgical coal seen this year. The quarterly benchmark price for low-volatile PCI coal, of the type mined at Foxleigh, we increased 77% to US$133 per tonne for 4Q16.

“Under Foxleigh’s term contracts, each new quarterly price applies after any carry over tones from the previous quarter are delivered,” the company explained. “On this basis, it is currently anticipated that the higher December quarterly price will apply to coal delivered by Foxleigh from around November 2016 through February 2017.”

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