Overview
| Stage | Construction |
| Mine Type | Underground |
| Commodities |
|
| Mining Method |
|
| Mine Life | 50 years (as of Jan 1, 2020) |
Blue Creek is one of the last remaining large-scale untapped premium High Vol A met coal mines in the U.S.
The COVID-19 pandemic has substantially affected national and international financial markets, which could affect our ability to obtain financing for Blue Creek.As a result of this uncertainty, the Company initially delayed spending the $25.0 million that we budgeted for the development of the Blue Creek project until at least July 1, 2020 and has now further delayed the development of that project until at least summer 2021. |
Source:
Frontier-Kemper Constructors has been awarded a contract valued at approximately $63.7 million by Warrior Met Coal for the Blue Creek Energy Mine No. 1 project in Tuscaloosa County, Alabama, USA. The scope of work includes the excavation and construction of the mine shaft, mine slope, slope hoist and service hoist.
Summary:
The project targets the Mary Lee coal seam which has an average thickness of 5.2m.
Blue Creek mine will produce a premium High Vol A met coal that is characterized by lowsulfur and high coke strength after reaction (CSR).
The ash content of the coal is 9.10%, while the sulphur content is as low as 0.70%.
Blue Creek mine contains approximately 103.0 million metric tons of recoverable reserves. The recoverable reserves can be increased to over 170 million metric tons by acquiring adjacent reserves as well.
Summary:
The Blue Creek development will be a single longwall mine and is expected to have the capacity to produce an average of 4.3 million short tons per annum of premium High-Vol A met coal over the first ten years of production. It is one of the last remaining large-scale untapped premium High Vol A met coal mines in the U.S.
Blue Creek is expected to have a mine life of approximately 50 years assuming a single longwall operation.
Based on the current schedule, Warrior expects first development tons from continuous miner units to occur in the third quarter of 2023 with the longwall scheduled to start up in the second quarter of 2025.
Summary:
The coal will be cleaned at the coal preparation plant.
Projected Production:
| Commodity | Units | Avg. Annual |
|
Coal (metallurgical)
|
M tons
| 4.3 |
All production numbers are expressed as clean coal.
Operational Metrics:
| Metrics | |
|
Annual mining capacity
| ......  |
* According to 2020 study.
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Reserves at December 31, 2019:
| Category | Tonnage | Commodity |
|
Proven
|
64,309 kt
|
Coal (metallurgical)
|
|
Probable
|
38,733 kt
|
Coal (metallurgical)
|
|
Proven & Probable
|
103,042 kt
|
Coal (metallurgical)
|
Commodity Production Costs:
| | Commodity | Units | Average |
|
All-in costs
|
Coal (metallurgical)
|
USD
|
...... *
|
|
Assumed price
|
Coal (metallurgical)
|
USD
|
...... *
|
* According to 2020 study / presentation.
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2020 Study Costs and Valuation Metrics :
| Metrics | Units | LOM Total |
|
Initial CapEx
|
$M USD
|
......
|
|
Equipment leasing costs
|
$M USD
|
......
|
|
After-tax NPV @ 10%
|
$M USD
|
......
|
|
After-tax IRR, %
|
|
......
|
|
After-tax payback period, years
|
|
......
|
- Subscription is required.
Mine Management:
| Job Title | Name | Profile | Ref. Date |
|
.......................
|
.......................
|
|
Nov 10, 2020
|
- Subscription is required.
- Subscription is required.