A new mine proposed near Sparwood could produce its first coal by late 2022 as it moves towards approval.
North Coal plans to develop three metallurgical coal deposits in the Michel Creek watershed, covering 8000ha and located at Loop Ridge, Tent Mountain and Michel Head.
The deposits contain more than 100 million tonnes of hard coking coal and the estimated life of the mine is 30 to 40 years.
“Our plant would have the capacity of somewhere between a Coal Mountain and Line Creek facility, so anywhere from between 400 and 600 tonnes per hour,” North Coal President John Pumphrey told Sparwood council at the January 7 regular meeting.
“We’re in the midst of some feasibility studies now trying to nail down exactly what that ideal rate would be.”
The Michel Coal Project promises to be a “2020 mine” that uses cutting-edge technology to minimize its impact on the environment and surrounding communities.
Director of Environment Bill Arling explained concerns about water quality and dust control will be managed “upfront”.
North Coal is currently testing a waste rock dump design that he described as similar to a landfill and one that limits air and water penetration.
“It’s the air that allows the conversion of selenium into a bioavailable form,” he said.
“What we’re attempting to do is reduce the amount of water that moves through the waste dumps but, most importantly, manage the amount of air that gets into them and the way we do that is by constructing the dumps from the bottom up and those thin layers of compacted material.”
Arling said this technology is being used worldwide but has never been applied in the Elk Valley.
North Coal is in the process of compiling an environmental assessment, which it hopes to submit by the end of this year.
Pumphrey said the approval process is expected to take 12 months followed by a three to 12-month mine permitting process.
This puts construction at late 2021 and the first coal in late 2022 to early 2023.
North Coal is also looking at exercising its option to buy the land, which has a long history of mineral exploration and is currently owned by logging company CanWel.
“In order to compete in this market, you have to be able to produce at a price that is competitive with the best mining companies in the world, and Teck is one of those mining companies,” said Pumphrey.
“We focus very strongly on ensuring that during the lead times and the low commodity pricing cycles, we’re able to compete.
“Our mine has been designed and built to ensure that our operating costs throughout the life of the mine can sustain those low cycles and that our capital costs at the start are competitive as well.
“...Environmentally, we’re working very hard to make sure we can meet not just regulatory numbers but social, community concerns of interest and really what the communities would like to see as a far as a new 2020 type mine.
“There’s a lot of time and effort being put into that.”