JOHANNESBURG (miningweekly.com) – Australia-listed, but Canada-headquartered developer Atrum Coal and Japan Oil, Gas and Metals National Corporation (Jogmec) will jointly explore for anthracite in the southern part of the Groundhog coal field, in British Columbia.
The joint venture (JV), which was announced by both companies in separate statements on Monday, gives Jogmec the right to earn up to 35% in the Panorama North project, by investing up to C$5-million in exploration over a three-year period.
“The focus of the next stage of exploration at Panorama North will be to build upon historical exploration and to begin quantifying the resource potential of this area. If successful, the three years of exploration will lead to a feasibility study, and set Panorama North as yet another development zone within the Groundhog coalfield,” commented Atrum chairperson Robert Bell.
Jogmec also holds an exclusive right to negotiate with Atrum to participate in the Panorama West project, adjacent to the Panorama North project, for a period of four years.
The Groundhog North project remains Atrum’s first priority, as it aims to become a global producer of anthracite and underpins its plan to supply up to 100 000 t of anthracite to European and Asian customers with an agreement with Atlantic Carbon, in which it aims to acquire a 26.68% stake.
The Groundhog North project is planned to produce 880 000 t/y of anthracite.
The Panorama North JV is Jogmec’s first anthracite venture, with the group’s coal JVs now totalling six since it started its coal JV scheme in 2013. Jogmec has three coal JVs in Australia, two in Canada and one in Indonesia.
Jogmec pointed out in a statement that Japan imported about 6.3-million tonnes of anthracite in the 2015 financial year, out of which more than 40% was imported from Russia and more than 30% from Australia.
“As anthracite reserves are estimated to occupy only about 1% of the world coal reserves, it is anticipated that once developed this project will contribute to diversify the supply sources of anthracite, [following] the recent sharp decrease [in] anthracite supply for [the] export market, and could lead to reinforce Japan’s resources security,” the Japanese government agency reported.