Xstrata Coal has agreed to acquire the Sukunka hard metallurgical coal deposit from Talisman Energy Inc. for US$ 500 million in cash, subject to customary conditions.
Sukunka is located in the Peace River Coalfield of northern British Columbia, Canada, contiguous with First Coal Corp. and Lossan tenements acquired by Xstrata Coal in August and October 2011 respectively.
Sukunka has an NI 43-101-compliant coal resource of 236 million t in the measured and indicated categories. Norwest Corp. has completed a pre-feasibility study for a longwall mine producing hard metallurgical coal. Xstrata Coal’s technical studies indicate the potential to realise further value from the resource.
Peter Freyberg, CEO of Xstrata Coal, said: “Based on our due diligence and technical analysis, Sukunka has the potential to be a high quality metallurgical coal mine. Once developed, Sukunka would meaningfully increase our exposure to hard metallurgical coal, while unlocking synergies with our neighbouring assets in the Peace River coalfield and providing additional regional scale.”
Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/08032012/xstrata_acquires_metallurgical_deposit_in_canada/