NEMI starts mining coal at Trend (January 09, 2006)

Vancouver — NEMI Northern Energy & Mining (NNE.A-V, NNEMF-O) has risen to the rank of coal producer, with final regulatory approvals in place at its Trend Small mine (TSM) near Tumbler Ridge in northeastern British Columbia.

After receiving its Mines Act permit earlier this year, the final environmental and water permits allow the company to begin mining operations en route to launching its processing circuit in January 2006.

NEMI anticipates initial production rates at TSM of about 40,000-60,000 tonnes per month of medium volatile bituminous coking coal.

A contractor will deliver the coal from the plant site to the load-out facility. A 16-km railway line along the Tumbler Ridge branch line and another 3.5 km within the NEMI rail loop have been completed and are ready for coal shipments. Transportation agreements are also in place with CN to ship the coal, and with Ridley Terminals, in Prince Rupert, B.C., for its handling facility.

The Japanese trading company Itochu has been appointed exclusive marketing agent for the metallurgical-grade coal. Itochu has also approved NEMI’s feasibility study and has advanced the second and final $10-million tranche of its $20-million loan to the company.