South Peace Historical Society

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  • Table of Contents

    • Part 1: First Nations of the Peace River Region
    • Part 2: The Fur Trade Era
    • Part 3: Transportation and Communication
    • Part 4: Old Timers and the Price of Land
    • Part 5: Dawson Creek: The Story of the Community
    • Part 6: Mysteries, Adventures and Indian Legends
    • Part 7: Arts, Crafts and Recreation
    • Part 8: Agriculture
    • Part 9: Church Histories
    • Part 10: Schools
    • Part 11: Health Care
    • Part 12: Industries and Enterprises
    • Part 13: Policing the Peace
    • Part 14: Pouce Coupe, Rolla, and Other South Peace Communities
    • Part 15: Chetwynd and the Fort St. John Area
    • Part 16: The Alberta Peace
    • Part 17: Natural History of the Peace River Region
    • Part 18: Interviews with Old Timers
    • Part 19: Remembering Our Veterans

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BN12-44: Study Yields Positive Results for Coal Mine

Recent History – 2001

Jan. 31, 2001

TUMBLER RIDGE — A scoping study has produced some encouraging results for the start-up of a small-scale coal mine in the Tumbler Ridge region.

The study, prepared by Norwest Mine Services Ltd., supports the potential for development of an underground mine on Western Coal Corporation’s (WCC) Wolverine property that would yield about one million tonnes of metallurgical coal each year.

The property is located about 23 km. west of Tumbler Ridge. The study is for the Perry Creek deposit, adjacent to the railway and one of several deposits on the property.

Western Coal Corp. made the announcement Monday.

Norwest evaluated two production levels — 670,000 tonnes per year and 1,007,000 tonnes per year — and found that the higher production level had the more favourable economics.

“A mine producing one million tonnes of saleable coal annually is generally considered to be the optimum size for a single underground mine in the Rocky Mountains,” said Norwest in the study. “Several mines of this size have operated successfully.”

Norwest estimates a total of 35.7 million tonnes of coal in the deposit, of which three million is indicated, 18.9 million tonnes is inferred, and 13.9 million tonnes is speculative.

The mine would last 13 years and, based on a price of $57.35 per tonne, it would produce a pre-tax internal rate of return of 22 per cent.

Norwest also said some work should be carried out in nearby areas, both those owned by WCC and by other companies. “Those deposits may add to the life of a mining operation developed in the Perry Creek area if future exploration and evaluation shows that their development would be economic,” Norwest said. “The potential may exist for a significantly larger operation to be developed in the Wolverine area with the Perry Creek operation forming the cornerstone of this complex.”

With the results in hand, Vancouver-based WCC said in the news release that it is having discussion with potential investors and participants with respect to financing or pursuing a joint venture for the next stages of exploration and feasibility work on the Perry Creek deposit and the Wolverine property.

This article is taken from the Peace River Block Daily News, Dawson Creek, with the permission of the publisher. The Daily News retains all rights relating to this material. The information in this article is intended solely for research or general interest purposes.

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