The company has been going on with a project in Telkwa, British Columbia of Canada, which aims to exploit multiple unexplored mining areas in the region.
Allegiance Coal plans to work on the exploitation in the second half of 2020 after gaining all permits and licenses in the first half. The project is on track to produce coal in the fourth quarter of 2021.
Allegiance Coal announced last month that it will shorten the mining period in Telkwa to 14 years and four months, but will lift the production from the fifth year onward after the commission. The earlier plan said the project will produce 750,000 tonnes of coal annually in 22 years.
The company said the annual production will be lifted from 750,000 tonnes to 1.05 million tonnes in the fifth and sixth years after it's commissioned, and 1.35 million tonnes from the seventh year onward.
Allegiance Coal decided on July 15 to take over New Elk coal mine from a Canadian miner Cline Mining Corp. The takeover will be concluded on July 14, 2020.
New Elk is a metallurgical coal mine in the Raton Basin in the Las Animas county, Colorado of the US, mainly producing hard coking coal.
Cline Mining acquired the mine at a price of C$17 million in 2008, which was then called Allen coal mine and in a shutdown situation, and reopened it in 2010. Hard coking coal produced at this mine was shipped to American and other users in the world.
New Elk has been in a care & maintenance condition since July 2012 when Cline Mining suspended operation, partly due to slumping coking coal market.
(Writing by Alex Guo Editing by Tammy Yang)
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