Update on Alberta Coal Corporation (3948A)
March 29 2012 - 11:22AM
UK Regulatory
TIDMNSN
RNS Number : 3948A
Natasa Mining Limited
29 March 2012
Natasa Mining Limited
("Natasa" or the "Company")
Update on Alberta Coal Corporation
Further to the announcement made on 24 February 2012, regarding
the proposed listing of the Company's wholly-owned subsidiary,
Alberta Coal Corporation ("ACC"), on the Main Market of the London
Stock Exchange, Natasa announces an update on its intended strategy
in respect of this asset.
In order to maximise the underlying value of such a substantial
coal resource, the Directors have decided to retain 100% ownership
of the Fox Creek Coal Project, take it to a higher level of
development and fund, out of Natasa's existing financial reserves,
additional drilling, quality/processing and marketing studies to
further demonstrate the project economics.
As previously announced, the Fox Creek Coal Project comprises
six coal leases located in Alberta, Canada which have had
substantial exploration, drilling and processing studies conducted
on them in previous years. A Competent Person's Report has been
prepared by an internationally recognised expert and reported in
compliance with Canadian NI 43-101 requirements, which shows that
the Fox Creek Coal Project contains a measured, indicated and
inferred thermal coal resource of 870 million tonnes, of which 777
million tonnes are measured and indicated. Due to the change in
strategy regarding the further development of this asset referred
to above, this report is in the process of being updated and will
be made available in due course.
It was previously announced that ACC intended to raise funds to
further investigate and develop the Fox Creek Coal Project, with
the intention of progressing a bankable feasibility study on the
project. However, since this announcement, ACC management, in
conjunction with independent coal mining and coal trading experts,
have been further assessing the outlook for the Pacific Basin's
seaborne thermal coal trade market.
It is the view of management, and supported by these experts,
that the demand for thermal coal in the Pacific Basin is expected
to grow substantially, with concurrent positive selling price
movements, in the coming years. For example, India's import demand
is forecast to grow from 86 million tonnes in 2011 to 400 million
tonnes in 2030; and China's import demand is forecast to grow from
102 million tonnes in 2011 to 1,000 million tonnes in 2030. ACC
management expect that Canada must become a significant exporter in
meeting this increased demand.
The Company will provide further updates on this process in due
course, as appropriate.
Enquiries:
Chrisilios Kyriakou, Executive Chairman
Natasa Mining Ltd
Telephone: +44(0) 20 7290 3102
Angela Peace/ James Spinney
Strand Hanson Limited
Telephone: +44 (0) 20 7409 3494
Philip Haydn-Slater/Paul Dudley
HD Capital Partners LLP
Telephone: +44(0) 20 3551 4870
ENDS
This information is provided by RNS
The company news service from the London Stock Exchange
END
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