The tenement formerly known as Mount Klappan increased its reserve tonnage, production capacity and mine life after a revised feasibility study released by Fortune yesterday reassessed data from extensive exploration, modeling and surveying activities.
The updated project review suggests Arctos would have a mine life of 25 years and be one of Canada’s most cost-effective metallurgical coal producers, with a vessel-loading cost estimated at $C128 per tonne at the nearby Pacific coast port of Prince Rupert.
The project’s Lost Fox deposit contains a high-grade coal reserve of 69Mt and would host an open pit operation producing 3Mt per annum of washed product.
Lost Fox represents one of Arctos’ four deposit areas that, when combined, include 33 coal seams up to 11m thick, 14 of which are considered economic for Lost Fox’s initial open pit plan.
The mine plan is to employ 580 people at peak production.
Fortune says the project’s permit process for environmental approval and community engagement is ongoing.
Arctos covers 16,411 hectares of licenced land in the traditional territory of the region’s indigenous Tahltan people and is 33km northeast of the Prince Rupert export facility.
The Capesize-accommodating terminal is undergoing an expansion to 24 Mtpa capacity and permitting a future potential expansion to 60Mtpa.
Arctos is a joint venture between Fortune and Korean steelmaking giant Posco.
CN is also collaborating with the miner on rail infrastructure initiatives in the region to link Arctos to the Pacific coast.
The feasibility study predicts that the mine will lease six, 127-car train sets with capacity of 95t per car to transport 3Mtpa of coal to the port.