The company said late last week that approval to conduct room and pillar mining from that seam was received January 3. It announced December 30 that full commercial production from the complex in Las Animas County had commenced.

The green-lighting of the seam is the second of two approvals Cline had sought for New Elk; it already was granted the ability to mine from the Allen seam.

“New Elk continues to implement its first phase plan with a view to bringing the New Elk coal mine into full commercial production of high quality metallurgical coke making coal at a rate of 3 million tons of saleable coal annually during its initial 20-year mine project plan period,” the company said.

In fact, New Elk’s full planned production rate is expected to be attained during the first half of this year, and officials are projecting 2.5Mt of saleable coal production in 2012.

Production in 2012 and annually thereafter is expected to be 3Mtpa.

New Elk is estimated to contain 191.2Mt measured and 197.3Mt indicated in-place low-sulfur, high-volatile, B bituminous coking coal. These figures exclude in-seam partings and include only coal exceeding three feet in thickness.

Cline has commissioned an independent National Instrument 43-101 compliant engineering report for the expansion of the complex from the present first phase mine plan of 3Mtpa saleable to a projected 7.2Mtpa saleable that includes a feasibility study on the full expanded mine.

This expansion is set to involve the installation of a longwall operation in addition to the present room and pillar extraction.

In preparation for the engineering report and feasibility study, 12 exploration holes were drilled in 2011 in addition to 16 holes drilled in 2010.

The engineering report and feasibility study are expected to be turned over to Cline for review during the first half of this year.