The operation will serve as a successor to GCC’s No. 7 room and pillar mine, which commenced production in November 2004. The company did not indicate the mine’s remaining lifespan.

No. 12 South B2, designed to start at the highwall of the present No. 12 South B2 surface mine, will be a multi-seam operation. No changes to the current haul road are needed, GCC said, and no additional surface alterations will be required.

However, GCC representatives said the company’s current mine permit would need to be amended, and the mine would also require an Energy Resources Conservation Board Mine License and an amendment by Alberta Environment of an Environmental Protection and Enhancement Act Approval, which the producer already holds.

Pending the necessary regulatory approvals, site preparation for the mine’s surface portals could begin next year.

GCC president Robert Stan said the new operation would provide “continuity for our underground workers and the community” with its place as a successor to No. 7.

"Our company has made a significant investment in underground mining expertise, training and equipment, and has gained operational experience at the No. 7 mine that will carry over into the new No. 12 South B2 underground mine,” he said.

“Current world pricing and demand for export metallurgical coal is depressed, however our company must prepare for the future and secure mining approvals so that production can be increased as world markets recover."

The next step for the producer is the filing of a National Instrument 43-101, which will include a statement of resources and reserves at the property. That documentation will be submitted with its annual information form for the fiscal year ending March 31.