Resource World Magazine

NYSE] is one of those companies. With over 4,400 employees across six steelmaking coal operations, Teck is the number one producer of steelmaking coal in North America, the number two exporter of steelmaking coal in the world and accounts for 80% of Canadian steelmaking coal production. The company has over a hundred years of coal resources. Ian Kilgour, Chief Operating Officer at Teck Resources, pointed out in his talk that his company has numerous expansion plans that include improved mining fleets at its mines at Fording River, Greenhills, Elkview and Line Creek; modernization at Cardinal River and Coal Mountain; as well as major processing plant upgrades at Greenhills and Elkview. Teck is also planning to resume production it its Quintette Mine in the northeast where it has already invested $200 million and permitting is well under way. The Qunitette Mine was in production from 1982 to 2000 and, when it restarts, will ramp up to an annual production of 4 million tonnes. In total, Teck produces about 28 million tonnes of coal per year. Teck is also improving its loading facilities at Neptune Terminals in North Vancouver and Westshore Terminals in Delta, Canada's number one coal export facility, where Teck is the largest client. Tony Meyers, Vice President, Canadian Operations for American company, Walter Energy, Inc. [WLT-TSX], told the conference attendees that he is encouraged that spot prices for metallurgical coal have increased in the third quarter 2013 from their low of US $130/tonne. Today's prices are troublesome and Walter Energy had to suspend production last April at its Willow Creek Mine near Tumbler Ridge, northeast BC. The company still operates its Wolverine and Brule mines in the northeast where production is about 4 million tonnes per year. New coal mines are also planned for BC. Robin Goad, President and CEO of Fortune Minerals Ltd. [FT-TSX; FTMDF-OTCQX] gave a talk on his Arctos Anthracite Project in north-central BC where over $100 million has been spent to date. The project has runof-mine proven and probable coal reserves totaling 124.9 million tonnes. Pre-tax IRR is 17% with a NPV (8%) of $615.9 million. It is hoped production can start by the end of 2016, although there is First Nation opposition. There has been some opposition by the public, environmental organizations and the City of Vancouver to coal port expansion plans in the Metro Vancouver area. Port Metro Vancouver has asked Fraser Surrey Docks, where coal has already been exported for decades, to review the human health effects of coal dust, train traffic noise, environmental impacts and climate change due to the proposed expansion plans. n Anglo American donates $2.566 million to protect BC's northern caribou Chief Financial Officer of Anglo American PLC's [AAL-London] Metallurgical Coal business, Brent Waldron, presented the Minister of Forests, Lands and Natural Resource Operations for the Government of British Columbia, the Honourable Steve Thomson with a $2.566 million cheque for the Government of British Columbia's Peace Northern Caribou Plan. This is the largest funding contribution made by a mining company for caribou mitigation measures under the Peace Northern Caribou Plan and Waldron said he was proud to personally present the donation on behalf of Anglo American. "This contribution comes as part of Anglo American's TrendRoman Project, an open cut expansion for the Peace River coal operation near Tumbler Ridge in northeast British Columbia and represents the company's commitment to maintaining the highest standards of environmental protection," said Waldron. Chief Executive Officer of Anglo American's Metallurgical Coal business, Seamus French, said the donation demonstrated the high importance Anglo American has given to the Peace Northern Caribou Plan. "We understand and respect the caribou's importance to First Nations and local communities, and we are proud to play a key role in this environmental management project through our unprecedented securement of 2,009 hectares of caribou habitat and a financial contribution of $2.566 million," French said. On receiving the cheque, Minister Thomson said, " Anglo American's Roman Mine Project is an excellent example of how november 2013 Left to right, Brent Waldron, CFO of Anglo American coal division, presents a cheque for $2.566 million to help the northern caribou to the Honourable Steve Thomson, Minister of Forests, Lands and Natural Resource Operations for the Government of British Columbia, and Mike Bernier, MLA for Peace River South, British Columbia. Photo by Ellsworth Dickson resource development can be done in an environmentally responsible and respectful manner." "We have set aside a total of 2,009 hectares of our tenure, which represents an area four times the size of the Trend-Roman Project area," said French. "The start of mining activities at Roman is an important next step in our plans to extend the life of our Peace River operations for another 16 years." The $200 million Trend-Roman expansion, expected to be ready in Q1 2014, will produce up to 2.5 million tonnes of metallurgical coal per year, and employ up to 450 people. n www.resourceworld.com 29

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