Rich to joint-venture Kentucky coal mine

Alberta-listed Rich Minerals has entered a 50-50 joint venture with NFS Inc. of California to acquire a coal mine in Kentucky.

The project includes three coal properties with proven reserves of 43 million tons of high-BTU/low-sulphur coal. (The reserves are supported by core sampling and engineering reports.)

Acquisition and startup are expected to cost under $2 million, as the project has some infrastructure already in place. A 40-year mine life is projected, and 250 jobs will be created.

Cash flow is expected to be US$80,000 per month for the first few months, increasing to US$500,000 per month at full production. Cash flow projections are based using a conservative coal price of $25 per ton.