Since 2009, the company has embarked on a strategy to become an emerging coal producer, successfully acquiring RAC Mining as well as acquiring a 50% stake in Birmingham Coal & Coke.
These operating subsidiaries had previously been running independently, but CanAm told the market Thursday that it had moved the mine operations under one consolidated structure.
The transition, which began in early March, is now reaching its completion.
Under the structure, BCC will, in addition to the operation of the Bear Creek, Old Union and Gooden Creek mine, also take on operational responsibility for the Powhatan and Davis mine.
CanAm said this would allow the company to simplify management structure, implement consistent policies, processes and procedures across all mines and establish a common performance measurement and accountability framework.
Additional mines that are slated to open up later on this year, the Old Union 2 and the Posey Mill 2 mines, will also be managed within the context of this common structure and team.
CanAm is expecting to see a variety of advantages by employing this tactic, including the sharing of resources; staff, equipment and parts, optimization of equipment utilization.
In addition CanAm said it had appointed Eric Hallmark as the controller for the Alabama mining operations.
Eric will be responsible for accounting, financial and regulatory reporting, and banking and taxation.
Hallmark, who has a bachelor’s degree in accounting, joined CanAm in December 2011.
CanAm chief financial operating officer Jos De Smedt commended the move to affiliate CanAm’s subsidiaries.
“Consolidation of our operations under a common structure was the next logical step for us as we look to drive synergies and operational efficiencies across the mines,” he said.
“In addition, simplification of our structure and leveraging BCC's 30 year experience of running safe and profitable mining operations makes perfect sense as we continue our consolidation strategy in Alabama and look to exercise our BCC option in the near future.”
CanAm owns four coal operations in Alabama as well as the Buick coal project in Colorado, which has 188 million tons indicated and 103Mt inferred resources.
