Coal project spurred by world demand

Gary Park

Petroleum News Calgary correspondent

Elk Valley Coal Partnership is ready to invest C$120 million in a west-central Alberta mine, confident in the outlook for export markets.

The partnership, owned 65 percent by Fording Canadian Coal Trust and 35 percent by Teck Cominco, is aiming for production of 1.4 million tonnes in the fourth quarter and, depending on market demand, 2.8 million tonnes in 2005.

El Valley Coal President and Chief Executive Officer Jim Popowich said in a statement March 16 the prospects for coking coal sales are “very positive.”

He said the 62 million tonnes of coal reserves in the permit area at the Cardinal River operation should provide jobs and economic benefits for 20 years.

Elk Valley Coal said mining activities will start once a mine license is obtained from the Alberta Energy and Utilities Board.

The partnership has budgeted C$50 million for the initial phase and another C$70 million if it decides to double production.

Fording is Canada’s largest coal producer, while Elk Valley Coal is the world’s second largest exporter of metallurgical coal, capable of supplying 25 million tonnes to the international steel industry.