The resource has produced metallurgical and bituminous coal from the Hartshorne seam via surface and highwall techniques since the 1900s by private outfit Farrell-Cooper Mining, which will sell the remaining resource to the two to be mined with underground methods and to extract gas in an "integrated fashion".

Both companies are currently in a due diligence process to evaluate the best methods for mining as well as business alternatives for the property, and development and extraction will commence once that is complete, West Hawk said.

“The property has existing infrastructure with access to rail, paved roads, water, and power on site; water transportation is nearby and all permits are in place," West Hawk officials said.

“The product has a long history of being used in the North American and international market and can be taken to market by either rail or water."

West Hawk added that the low-vol, low moisture product has historically contained 6–8% ash and 1% sulfur with more than 13,000Btu per pound.

Once the due diligence wraps, West Hawk will hold one-third of the property and FEV will control the remaining two-thirds. The former will manage the outfit, including both the coal and coal bed methane operations.

The gas gathering and sales, meanwhile, will be controlled by FEV which will provide financing to the entire project. Upon development, a potential resource estimate will be commissioned by West Hawk.

“West Hawk sees this move as strategic to our British Columbia, Groundhog project, as the two coals can complement each other in the PCI, metallurgical and gasification market," said West Hawk president Dr Mark Hart.

Added Farrell-Cooper Mining president William Cooper: "We have been evaluating various companies to develop this underground deposit as we completed the surface mining portion of the property and we look forward to a long working relationship with West Hawk and FEV, as together these companies have the operating, technical and financial strength to create substantial value."

It appears that the coal, which can be utilised in both the metallurgical and bituminous markets as well as for gasification via coal-to-liquids, coal-to-gas, or coal-to-power technology, may potentially support three separate mining operations with a 14-mile-long outcrop.

“With existing permits, installed infrastructure, control over the gas rights, and an extremely hungry market for this product, we can bring this product to market much quicker than the typical operation," said West Hawk Asian operations president Dr Jinsheng Chen.

West Hawk executive vice-president of engineering Dr Andrew Schissler said: "The Arkoma coal region has provided energy for 100 years building America, making steel, and providing a superior fuel for heat and electricity. West Hawk looks forward to working with our partners to build a world-class clean energy system on this superb property."