Coalspur Mines has completed a bankable feasibility study (BFS) at its Vista Coal Project in Alberta, Canada.
The BFS defined a 30-year mine life producing approximately 11.2 million tonnes per annum (Mtpa) of marketable clean coal.
The estimate was given from processing of approximately 20.4Mtpa of run of mine (ROM) coal on Vista, after ramp-up to full production.
Coalspur Mines managing director and CEO Gene Wusaty said that the development of Vista is supported by the growing demand for thermal coal in the Asian Pacific economies.
The company will submit the final first phase regulatory applications and commence detailed engineering works on Vista.
The works are expected to be completed in early 2013 and construction will immediately follow.
"With the completion of the BFS, the secured port allocation at Ridley Terminals and an MOU with CN Rail, Coalspur has been elevated into the top-tier of global export thermal coal developers," said Wusaty.
Coalspur will now focus on several initiatives which include evaluating the utilization of contractors for pre-strip and initial years of mining and project financing discussions with potential off-take partners.
Other initiatives include initiating detailed engineering on the Vista mine design and submitting the final regulatory applications required to begin construction.
The development of the mine is planned in two phases; the first phase of Vista is planned to produce 5.0Mtpa with first production scheduled for early 2015.
The second phase is scheduled to begin construction in 2015 and reach full capacity of 11.2Mtpa of marketable coal production in 2018.
Projected first phase development is expected to cost C$864m ($862m) and an incremental C$370m ($369.2m) to reach full capacity of 11.2Mtpa in the second phase.
Snowden Mining Industry Consultants Inc and other international coal industry engineering firms undertook the study.
The company also completed a pre-feasibility study (PFS) which was completed in December 2010.