TECH CORP. Some Other Coal Properties Anthracite production

Teck Corp. holds 34 coal licences in an area about 40 km to the northwest of the Bullmoose mine. Burnt River coal is ranked as semi-anthracite and 30-40 million tonnes of reserves could be recovered by open pit methods at a rate of up to one million tonnes per year from three major seams.

About two-thirds of the reserves meet anthracite market standards and one-third is a low volatile thermal coal. The ash content of the seams is considered to be low enough so that coal washing is not required, thereby reducing the capital cost associated with a preparation facility. A screening plant would be required, however, in order to properly size the product for different markets. Coal can be truck-hauled to the Bullmoose rail loadout facility at Tumbler Ridge for delivery to the terminal at Prince Rupert, or it can be loaded onto rail cars at Chetwynd, 60 km from the property.

Exploration has been ongoing since 1971 and more than 13,000 metres of drilling have been completed (1,000 metres in 1985) along with several adits and test pits.

In December, 1985, some 20,000 tonnes of lump coal (coarse coal produced after a screening test) were sold on a trial basis to Ssangyong Corp. In February, 1987, a further 20,000 tonnes of fine coal were sold to Kobe Steel in Japan through Nissho-Iwai (Teck’s coal-trading company in Japan).

The marketing of coal in general is very difficult in today’s oversupply situation and the development of a new mine at Burnt River can not be considered until prices for this type of coal significantly improve. However, if this were to occur, Burnt River would be in a competitive position to begin producing quickly.