Bingay project suspended due to poor market
The Board of Directors of Centermount Coal Ltd. announced April 8 a suspension of the exploration and development program at Centermount’s Bingay Main metallurgical coal project.
Centermount Coal Ltd. board chair Jack Austin stated last night, “the present global economy has reduced the demand for iron ore and therefore for metallurgical coal. The advice of our financial advisors is to expect that price strengthening will take place by the summer of 2014. Metallurgical coal producers are taking much lower prices today than in 2011 or in early 2012. The board has therefore decided that raising the major investment funds to complete a Final Economic Feasibility Study should await a metallurgical coal price and steel industry market recovery as current financial proposals are excessively dilutive.”
Austin noted the Bingay Main project outlined in a Prefeasibility Study, completed in the Fall of 2012, that a deposit of nearly 200 million tonnes of raw coal with metallurgical qualities similar to those of Fording coal, is available at the site located in the Elk Valley, approximately 21 kilometres north of Elkford, on the western boundary of Teck’s Fording.
“Work to date has focused on defining proven and mineable reserves both by open pit and underground methods, and by defining best environmental practices including proper control of selenium to avoid contamination of the Elk River watershed,” Austin explained.
Centermount Coal Ltd. is a private British Columbia company that has invested more than $20 million of shareholders funds in its Bingay Main project.
Centermount stated in a press release it greatly appreciates the support it has received from Regional District of East Kootenay Electroal Area A Director Mike Sosnowski and the mayors and councils of Elkford, Sparwood, and Fernie, and “to the Elk Valley community in general and our suppliers in particular, most of whom are Kootenay-based. We expect to resume our program in 2014.
More info: http://bingaycoal.com/about/