With the necessary documents now in hand, crews will immediately start site preparation work for the facilities, with construction projected to start sometime during the fourth quarter of this year.
The construction phase, which could cost an estimated $US20 million, is expected to take about six to nine months.
Once this infrastructure project is completed, officials said South Fork could produce 300,000-400,000 tons of premium quality, mid-volatility met coal from the Sewell seam, or about 50,000t per month.
At that goal production rate, the complex’s output could garner approximately $100 per ton. South Fork will have capacity of approximately 80,000tpm.
“Today marks a significant milestone for our company, reflecting the perseverance and commitment of our entire West Virginia team,” chief executive officer Matt Goldfarb said.
He noted that company president Bernie Mason and Xinergy’s engineering and permitting group played a significant role in making such progress in the face of an “extremely challenging regulatory environment”
“Despite near-term weakness in metallurgical coal pricing, the company remains bullish on the long-term fundamentals for the global steel industry and, in particular, believes that its ultra-premium South Fork mid-vol met reserves will preserve a niche market position for Xinergy through the cycle,” he said.
Xinergy and South Fork announced the completion of the complex’s mineral exploration, development and production review last March and filed a National Instrument 43-101-compliant report with its consultant, Summit Engineering.
The evaluation reflected a measured and indicated mineral resource of about 32.4 million tons currently leased at Greenbrier.
Of those tons, about 25.4Mt are proven and probable mineral reserve tons in seven seams: Hughes Ferry, Castle, Sewell B, Sewell A, Sewell, Beckley and Fire Creek.
Total capital expenditure for the Greenbrier property was expected to range between $US25 million and $40 million, officials said in 2011.
The Greenbrier complex started production in December 2011.
Xinergy's other key producing assets are Straight Creek in Bell County and Harlan County, Kentucky, and the Raven Crest complex in Boone County, West Virginia.
