CanAm picks brains of Birmingham Coal and Coke

CANADA-based and US-focused producer CanAm Coal has inked a consulting agreement with Alabama coal marketer Birmingham Coal and Coke to assist with CanAm’s strategic expansion plans in the state and nationwide.
CanAm picks brains of Birmingham Coal and Coke CanAm picks brains of Birmingham Coal and Coke CanAm picks brains of Birmingham Coal and Coke CanAm picks brains of Birmingham Coal and Coke CanAm picks brains of Birmingham Coal and Coke

Courtesy Alabama Coal Association.

Donna Schmidt

Birmingham Coal and Coke’s Robert and Thomas Lewis will provide advice and coal expertise to CanAm’s board of directors and management team, though the companies did not indicate how long the agreement would extend.

The CanAm consulting team will help the producer with strategic advice related to expansion plans and strategies for its US interests, especially Alabama.

It will also provide acquisition and integration assistance related to the company’s recent move to acquire ownership in RAC Mining.

"The expertise and experience that both of these gentlemen bring in the coal business will add additional depth and credibility as we build CanAm in an emerging coal producing company,” CanAm chief executive officer Tim Bergen said.

“We have worked with both Bob and Tom over the last six months and have built an excellent relationship, and this agreement is the next step in the evolution of our collaboration."

CanAm Coal changed its name from Radar Acquisitions in May. Just weeks later, it signed a letter of intent to become a 98% owner in RAC Mining, doubling its interest in the company from 49%.

“With our share of current production at approximately 5000 tons per month and our ultimate goal of achieving 10,000 to 15,000 tons of production per month, this acquisition would be significantly accretive to current earnings upon closing which is anticipated to occur by the end of August,” the company said last month in the announcement of the RAC Mining interest deal.

“In addition, we anticipate the introduction of highwall mining or auger mining later on this year which will add between 5000 to 12,000 tons per month to our production. On this basis, we anticipate fiscal 2011 exit production of between 15,000 and 27,000 tons."

In addition to its Alabama coal mine operations interests, CanAm holds the Buick Coal Project in Colorado, which contains 188 million tons of indicated and 103Mt of inferred coal resources, and has exclusive rights to a proprietary coal-to-liquids technology.

Birmingham Coal and Coke, which is focused on marketing Alabama-produced coal to industrial, utility and export markets, will mark 35 years in business in 2010.

The company also produces coal from three surface operations in northwest Alabama