By Esmarie Swanepoel

August 22, 2017 - A review of the staged production plan tipped for the Telkwa metallurgical coal project, in British Columbia, has resulted in significant cost savings.

ASX-listed Allegiance Coal said on Monday that the Stage 1 start-up costs estimated in the prefeasibility study (PFS) has reduced from an estimated $51-million to $36-million.

The July PFS estimated that the Stage 1 development would see the production of 250 000 t/y of saleable coal, ramping up to 1.75-million tonnes a year in Stage 2, after four years of operation.

At the time, Alliegance noted that the Stage 2 development would require a further $162-million capital investment. However, this could also be reduced to $54-million with a manufacturer-funded and operated wash plant, and either contract mining or equipment leasing.

The company meanwhile told shareholders that a dedicated PFS into the Stage 1 standalone operation was due for completion before the end of September.

This PFS would act as the blueprint for the start of project development, and would form the basis of Allegiance’s project description to the Ministry of Energy and Mines, as well as its permit applications and its consultations with other key stakeholders.