CamAm Coal Corp (TSXV:COE) announced that one of its subsidiaries, Birmingham Coal & Coke received an Old Union II permit, providing the company with a 5 year surface mining agreement in Alabama. The subsidiary also acquired additional surface mining rights on the Kilgore property, totaling 123 acres.
As quoted in the press release:
The Old Union II permit is a 5 year surface mining permit covering a total of 1,393 acres and 1,108 minable acres. The total recoverable tons of coal within the permit area is 1,274,750 tons. (See NI 43-101 report dated May 2011 on www.sedar.com). The Company has begun the mine development work and is targeting a September 2012 production startup. Annual production from the Old Union properties, which include the existing Old Union and the now permitted Old Union II mine sites, is forecasted at 360,000 to 400,000 tons per annum. To put this in context, Old Union mine production for the first 6 months of 2012 was approximately 110,000 tons.
Tom Lewis, Vice President of Birmingham Coal & Coke, commented:
We are excited about our new Old Union II permit as it will allows us to expand our mining operations, increase our production of high quality thermal coal and continue to meet our customer commitments. In addition, the acquisition of the Kilgore property will save us time and money as we avoid having to undertake a major bridge project.