BCEAO issues Section 10 Order & requests streamlined EA
process
Issued Capital: 121,276,976
LONDON, ON, April 19, 2013 /CNW/ - Fortune Minerals Limited
(TSX: FT)
(OTCQX: FTMDF) ("Fortune" or the "Company")
(www.fortuneminerals.com) and POSCO Canada Ltd. ("POSCAN") are
pleased to announce that their
Arctos Anthracite Joint Venture ("AAJV") has submitted a
revised
Project Description for the Arctos Anthracite Project to the
British
Columbia Environmental Assessment Office ("BCEAO") and the
Canadian
Environmental Assessment Agency ("CEAA"). This revised
Project
Description is based on the current development plan that
includes
extending the Dease Lake railway
line in northwest British
Columbia
("BC"), 150 km to the proposed mine along the existing railway
roadbed.
The mine plan has also been amended to reflect a three million
tonne
per annum production rate and to include modifications to
reduce
environmental impacts. The CEAA has accepted the Project
Description
and is seeking public comment on the environmental assessment
("EA")
process.
The BCEAO has issued a Section 10 order that determines that the
project
is reviewable and requires an EA to proceed. The BCEAO has
also
submitted a request to the CEAA for "substitution", which would
streamline the EA process under a single regulatory body in BC,
making
the EA more efficient with the elimination of unnecessary
duplication.
A decision on substitution is expected from the CEAA by late May.
If
the request is approved by the federal Minister of Environment,
the
province would commit to fulfill the conditions for substitution
which
includes undertaking procedural delegation of aboriginal
consultation
for the project.
Dr. Richard Schryer, Fortune's
Director of Regulatory and Environmental
Affairs, commented, "substitution of the federal EA process
enables
cooperation between jurisdictions in the delivery of timely,
high
quality EAs to achieve the objective of a 'one project-one
assessment'
approach".
The AAJV had already been in the EA process for a previous
development
plan and most of the environmental baseline information for the
mine
site has already been collected. The AAJV has been
conducting
significant additional environmental baseline studies for the
proposed
railway extension and to address gaps and update the mine baseline
data
to support permitting and detailed engineering designs. The
AAJV is
also targeting submission of its draft Application Information
Requirements ("dAIR") or "Terms of Reference" in May. The
final EA
report is expected to be filed in early 2014 to initiate the
review
process.
Project overview:
The Arctos Anthracite Project is one of the world's premier
metallurgical coal projects consisting of 16,411 hectares of
contiguous
coal licenses in northwest BC. The project is an international
collaboration between Fortune (80%) and POSCAN (20%), the
Canadian
subsidiary of South Korea's POSCO,
one of the world's largest steel
producers. Substantial engineering, feasibility and environmental
work
have already been completed for the proposed development, with
expenditures to date totalling approximately $100 million.
The Arctos project is located 330 km northeast of the Port of
Prince
Rupert and straddles the existing BC Railway right-of-way.
The roadbed
for this railway was constructed in the 1970's by the BC
government,
but was never completed from the current terminus of track, 150
km
south of the proposed mine. The railway right-of-way provides
a simple
brownfield access corridor to the Canadian National Railway at
Minaret,
and from there, to the Ridley Coal Terminal in Prince Rupert for export
of metallurgical coal products to overseas steel manufacturers
and
metal processors. Based on the recently updated definitive
feasibility
study for the Arctos project, the Proven and Probable
Run-of-Mine
Product Reserves will support a 25-year mine life, contributing
500
direct jobs and 1000 jobs in supporting activities and generating
more
than $10 billion in revenues and
$900 million in combined federal
and
provincial taxes. Further, there is an opportunity to extend
the mine
life from a very large mineral resource base.
Anthracite coal:
Anthracite is the highest quality metallurgical coal, measured by
carbon
and energy content, and represents just 1% of world coal
reserves. It
is also the most versatile coal, suitable for use in a broad range
of
steel making and metallurgical processes and as a raw material
to
manufacture synthetic products. The natural high carbon and
very low
volatile (gas) content of anthracite makes it ideal for use as
a
premium ultra-low volatile pulverized coal injection ("PCI")
product
that is injected into the blast furnace to reduce the amount of
coke
used in crude steel production. High carbon and low volatiles
also
allows anthracite to be used as a direct coke replacement and as
a
blend coal to make metallurgical coke that is typically made from
hard
coking coal. Anthracite is the only coal that can be used as
sinter
feed. Anthracite reductants are used in electric arc /
direct
reduction steel manufacturing and for the processing of ferroalloys
and
other metals. Carbon filters
for water purification are made with
anthracite coal as well as some carbon composite materials.
The high
carbon content of anthracite makes it the preferred coal for
gasification and liquefaction technologies to make urea
fertilizers,
plastics and high quality synthetic fuels, particularly in
Asia where
natural gas supplies are scarce.
The global shortage of high quality metallurgical coal is
driving
innovation in the steel industry as producers develop new
technologies
to be globally competitive, reduce greenhouse gas emissions,
and
diversify their sources of key raw materials. Many of these
new
technologies use even greater amounts of anthracite. The scarcity
of
high quality deposits and declining exports from the
traditional
suppliers highlights the importance of having a reliable
Canadian
source.
The disclosure of scientific and technical information contained in
this
press release has been approved by Robin
Goad, M.Sc., P.Geo., President
and Chief Executive Officer of the Company, who is a "qualified
person"
under National Instrument 43-101.
About Fortune Minerals:
Fortune is a diversified resource company with several mineral
deposits
and a number of exploration projects, all located in Canada. The
Company is focused on the development of the Arctos Anthracite
Project
in BC and the NICO gold-cobalt-bismuth-copper deposit in the
Northwest
Territories ("NT"). As part of the development of the NICO
deposit,
Fortune is developing the Saskatchewan Metals Processing Plant
("SMPP")
in Saskatchewan to process NICO
concentrates to high value metal
products. In addition, the Company owns the Sue-Dianne
copper-silver-gold deposit and other exploration projects in the
NT.
Fortune is focused on outstanding performance and growth of
shareholder
value through assembly and development of high quality mineral
resource
projects.
This press release contains forward-looking information.
This
forward-looking information includes, or may be based upon,
estimates,
forecasts, and statements as to management's expectations with
respect
to, among other things, the timing of a decision on substitution by
the
CEAA, the timing of the submission of a dAIR or Terms of Reference
by
the AAJV, the timing of issuance of a final EA report, the
proposed
development of and anticipated production from the Arctos project,
the
anticipated economic impact of the Arctos project and the
establishment
of a railway link to Prince
Rupert. Forward-looking information is
based on the opinions and estimates of management at the date
the
information is given, and is subject to a variety of risks and
uncertainties and other factors that could cause actual events
or
results to differ materially from those projected in the
forward-looking information. These factors include the risk
that the
Company may not be able to arrange the necessary financing to
construct
and operate the Arctos mine and/or the railway link to Prince Rupert,
the risk that the AAJV may be terminated in accordance with its
terms,
the risk that the Company may not be able to conclude an
agreement
with CN for the transportation of coal from the Arctos site to
Prince
Rupert, the possibility of delays in the commencement of
production
from the Arctos project, the inherent risks involved in the
exploration
and development of mineral properties, the risk that actual capital
and
operating costs for the Arctos project may differ from those
anticipated, uncertainties with respect to the receipt or timing
of
required permits and regulatory approvals, the uncertainties
involved
in interpreting drilling results and other geological data,
fluctuating
metal prices and other factors. Readers are cautioned to not
place
undue reliance on forward-looking information because it is
possible
that predictions, forecasts, projections and other forms of
forward-looking information will not be achieved by the Company.
The
forward-looking information contained herein is given as of the
date
hereof and the Company assumes no responsibility to update or
revise
such information to reflect new events or circumstances, except
as
required by law.
SOURCE Fortune Minerals Limited
Image with caption: "The Arctos Anthracite Project straddles the
existing BC Railway right-of-way in northwest British Columbia, Canada. (CNW Group/Fortune
Minerals Limited)". Image available at:
http://photos.newswire.ca/images/download/20130419_C6861_PHOTO_EN_25759.jpg