The National Instrument 43-101 (NI 43-101) compliant independent review was conducted by Colorado consultant Pincock, Allen and Holt and replaces an earlier preliminary report completed by the firm in 2010.
The new details reflect a project lifespan of about 17 years including 12 months for construction, a mining period of 15.5 years and a site reclamation period at the end.
Raven is expected to be mined by the room and pillar method, utilizing conveyor transportation to the surface.
Average tonnage processed on site will be 1.93 million tonnes raw, resulting in a total annual production of 850,000t of saleable semi-soft metallurgical and thermal middlings coal over the mining term.
Processed production will range from 650,000t to 1.1Mt per annum after initial start-up, and the final product will be transported to Port Alberni on Vancouver Island’s west coast for market to Asian coal markets, most likely Japan and Korea.
Raven’s construction is expected to begin in 2012 following the receipt of permits, and construction and development is anticipated to take about one year. First shipment from the complex is projected for late 2013.
"This feasibility study is a significant step forward for the company. It confirms the long-term financial viability of the Raven project which is achievable with responsible environmental and social considerations,” president and chief executive officer John Tapics said.
“We are pleased with the plan developed … and look forward to our next phase of progressing forward through the coordinated provincial-federal environmental approval processes.”
The PAH study found Raven to be financially attractive, with an estimated pre-tax net present value (8% discount rate) of $C378 million at an average realized price of $174/t.
Compliance intends to invest $251 million in the initial construction phase, which includes engineering, site preparation, construction of a coal processing plant, coal stockpiles and handling equipment, mine offices, equipment workshops, electrical substation and port facilities.
When in production, Raven is expected to create about 350 jobs over its lifespan and more than 200 jobs at the peak of construction.
A public comment period on the Raven project has begun and interested parties have until June 27 to provide input to the Canadian Environmental Assessment Agency and the British Columbia Environmental Assessment Office. Three public hearings will also be held.
