Just two years old, the metallurgical opencut mine has had operations suspended by its owner after the company ran into trouble caused by mining equipment failure, a drop in coal yields, and a lack of financial resources.
The company’s biggest problem was when it found the quality of coal was lower than what was projected in the company’s feasibility study – with oxidised coal three times higher than expected. The new wash plant also wasn’t able to successfully process the fine coal being produced.
Company president Robert Bell told the Vancouver Sun that the court had given Pine Valley direction to seek either a restructuring or a potential sale. He said a sale would be the preferred option.
