Using a triple head auger machine, Novadx’s wholly owned subsidiary MCoal is reporting initial production on a single shift, five days per week. Once management is satisfied with the auger’s performance a second 10-hour shift will be added.
‘Utilizing the auger mining method at the Rosa minesite allows MCoal to extract the coal with minimal surface disturbance, limited environmental impact and maximum cost-effectiveness,” Novadx president Neil MacDonald said.
“Upon implementation of the second shift per day, MCoal expects a single auger machine to produce over 160,000 gross tons per year at the minesite which, after washing, will yield approximately 135,000 cleaned saleable tons per year.”
Once the metallurgical coal from Rosa is mined, it is washed at a nearby facility with which the company has a contract.
The initial output from Rosa is being sold to a coking coal facility 43 miles from the operation for $US150 per ton, higher than the base price of $139/t anticipated in MCoal’s first phase economic analysis from March 2010.
MacDonald said Novadx was pleased with Rosa’s progress.
"It has taken us 18 months since initiating the project to assemble the land package, permit and develop the minesite and now to begin production is very rewarding.
“We continue to assess new acquisition opportunities for MCoal and having the Rosa mine in production brings us a step closer to our plans to become a mid-tier, high-quality coal producer."
Rosa said earlier this year that the mine’s fleet includes a Komatsu PC 400 and John Deere 890 track excavators, two Volvo 35t capacity articulated rock trucks, two tri-axle 20t capacity coal haulage trucks, one Komatsu 375 bulldozer, a CAT 980 loader, a CAT 416 backhoe, and a truck-mounted 6-inch RC drill and service vehicles.
The Rosa mine is located in northern Alabama, about 40 miles from Birmingham. It has an expected mine life of 12 years.
