During the quarter, Cambrian increased its holdings in WCC and Coal International by investing in their continued development of coal mines in British Columbia and West Virginia.
Following commissioning in July 2006, WCC’s Wolverine mine coal processing facilities were officially opened in the quarter, and run of mine (ROM) coal production increased 76% on the previous quarter.
Development applications to permit Wolverine coal production to increase from 2.4 million tonnes to 3Mt annually will be submitted in mid-2007.
During the quarter, Cambrian increased the amount available to Coal International under their loan facility agreement from £8.2 million to £13.5 million, and amended the agreement to provide for Cambrian to have the right to convert the balance outstanding under the facility into equity.
If shareholders approve and the entire loan is converted, it would result in Cambrian’s holding in Coal International increasing to 50.8%.