THE BOURSE WHISPERER: Dual-listed (ASX and TSX) Coalspur Mines has increased the forecast marketable coal production from its Vista coal project in Canada.
The forecast production for Vista has been increased to 11.2 million tonnes of coal per annum as part of the ongoing Bankable Feasibility Study.
This represents a 24 per cent increase over the 9Mtpa that was forecast in the company’s in the Pre-Feasibility Study.
Coalspur said the increased production rate came as a result of enhanced mine planning, increased clean coal yield and the optimization of mine infrastructure design.
The BFS is progressing on schedule and is expected to be ready for publication in early 2012 following completion at the end of 2011.
“The expanded annual production further confirms Vista’s status as a world-class, Tier one mining project,” Coalspur Mines managing director and CEO Gene Wusaty said in the company’s announcement to the Australian Securities Exchange.
“We expect that the increased production volumes in conjunction with the accessible rail and port infrastructure will render Vista an important first-world alternative supplier of export thermal coal to the rapidly expanding Asian Pacific economies.”
Coalspur said the revised production plan will process approximately 20.1Mtpa of run of mine coal and produce 11.2Mtpa of marketable coal.
The updated mine will accelerate dragline mining to the first year of production as compared to the fifth year, which was outlined in the earlier PFS, resulting in lower comparable mining costs.
The development of the Vista mine is planned to be completed in two phases an approach that Coalspur said will enable it to utilize a mine permit that was granted to the company in May this year.
It will also allow the company to reduce its upfront capital costs required before achieving significant operating cashflows.
In addition to the refined mine plan and processing plant design Coalspur indicated several other infrastructure components have also been optimized to accommodate the increased yearly tonnages.
These include the raw coal storage, coal sizing facilities, overland conveyor, and rail car load out facility.