Rosa Mine
The Rosa Coal Project is located in the Warrior coal fields of Northern Alabama, which is situated on the southern-most portion of the Appalachian Coal Belt. Alabama is a prolific and important coal producing state, with total coal production of over 20 million tons in 2008.
MCoal has developed a three-phase mine plan to recover over four million tons of Rosa Coal with an expected mine life of approximately 12 years. MCoal commenced the first phase of auger mining the Rosa Coal seam in April of 2010.
HISTORY
The Rosa coal project was mined from 1965 to 1978 by Calvert & Marsh Coal Co. Inc, using strip mining techniques. The company mined over 5 million tons of Rosa Coal which was sold to two coking plants in nearby Birmingham, Alabama, located approximately 45 miles from the Rosa project.
The strip mining techniques used by Calvert & Marsh "rim cut " the edges of the Rosa Coal deposit leaving an exposed highwall ideally suited for auger mining. The mining conducted by the company was completed prior to modern reclamation standards being established and as a result the Rosa Coal seam is highly accessible.
DEVELOPMENT
MCoal has completed drilling and channel sampling program of its phase one permit area. This program was supervised by Sanford Hendon, P.Eng of McGehee Engineering Inc a qualified person under NI 43-101. MCoal has completed a NI 43-101 compliant technical report for the phase 1 permit area. (view report here).
In December, 2009 MCoal received all necessary permits to begin mining at the Rosa Coal Mine. In April, 2010 MCoal commenced production a the Rosa Coal mine. Currently, MCoal is permitting and installing a coal processing (washing) facility at the Rosa Coal mine site.
HIGH VALUE PRODUCT
Rosa Coal is a very high-quality metallurgical coal, which is in high demand by MCoal's customers. Currently MCoal is selling the Rosa Coal to customers in the coking coal and activated carbon coal markets. Additional uses for Rosa Coal include other industrial applications such as specialty metal alloying.
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METALLURGICAL COAL
Metallurgical coal, also known as coking coal, supplies the carbon used in the making of steel from iron ore. The carbon created from coke gives steel its strength, so it can be used in bridges, buildings and automobiles. Typically 0.6 of a ton of metallurgical coal and 1.0 ton of iron ore are required to produce a ton of carbon steel. Metallurgical coal sells for a significant premium to thermal coal which is burned to produce electricity in coal fired power plants throughout the United States.
MCoal will sell its Rosa Coal with the following typical specifications:
| |
As Received: | Dry: |  |
| Total Moisture% | 8% | |
|
| Ash % | 1.7% | 1.8% | |
| Volatile Matter % | 25.1% | 27.2% | |
| Fixed Carbon % | 64.7% | 70.3% | |
| Sulfur % | 0.61% | 0.66% | |
| Calorific Value (BTU/LB) | 14,000 | 15,200 | |
| Free Swelling Index | 9 | |
|
| Hardgrove Index |
67 |
||
| Maximum Fluidity (DDPM’S) | 1001 | ||
| Start | 405 C | ||
| Final | 495 C | ||
| Range | 90 C |
||
| Oxidation | 94 min |
“Coking Coal remains an attractive industry long term….. High-quality coking coal is a rare geological commodity.” Citi Investment Research, March 2009.
