Novadx Ventures has obtained approval from the Alabama Surface Mining Commission to carry out surface coal mining activities at the Rosa Coal Mine in Blount County in Northern Alabama.
Consequently, Novadx's wholly-owned subsidiary MCoal has received Permit 3931-08-14-S, which relates to the first phase of the three-phase Rosa Coal Mine plan.
The first phase of mining under the permit covers 553 acres of old highwall exposures, which were left over from surface mining operations in the 1960s and 70s.
MCoal is using auger machines to penetrate the Rosa coal seam up to a 450ft in order to mine the seam.
Coal will be processed at a washing unit and then sold locally as a finished product to two coal coking units and other speciality coal users.
Novadx CEO and MCoal president Neil MacDonald said receiving the mining permit completes the permitting process needed to advance the Rosa Coal Mine to production.
"MCoal has now received all permits necessary to begin production of high quality metallurgical coal at the Rosa Coal Mine and we are starting construction of our settlement ponds this week," MacDonald said.
"Our goal is to be mining and selling metallurgical coal from the mine by the end of Q1 2010."