- Allegiance Coal (AHQ) is set to begin production at the New Elk Mine in late April with the first shipment planned for June
- Underground electricity supply and the ventilation fans have been activated and the mine entrance has been opened
- A Colorado State Mine Safety and Rescue team were allowed to enter, and they determined the conditions are very good with minimal rehabilitation needed
- Two continuous miners, three shuttle cars and one roof bolter have been refurbished, while a second roof bolter and feeder breaker have been purchased and will arrive next month
- Once production begins, AHQ has planned an 80,000-tonne shipment for delivery to Convent Marine Terminal in New Orleans for June
- Once completed trial shipments have been completed, supply contracts will be negotiated for 2022
- AHQ has ended the day 9.88 per cent in the green with shares trading at 8.9 cents
Allegiance Coal (AHQ) is set to begin production at the New Elk Mine in late April with the first shipment planned for June.
New Elk lies in the Las Animas County in Southeast Colorado and has an estimated 15 billion tonnes of coal.
AHQ acquired the mine in October 2020 and is aiming to return it to production in the middle of this year.
Underground electricity supply and the ventilation fans have been activated, and the mine entrance has been opened.
A Colorado State Mine Safety and Rescue team were allowed to enter and inspect an area where water had collected.
Source: Allegiance Coal
The majority of the water has now been pumped, and the mine safety and rescue team has re-entered the mine and continued inspection.
Pleasingly, the conditions of the underground mine are very good with minimal rehabilitation needed.
AHQ has restored two continuous miners, three shuttle cars and one roof bolter for the mine while a second roof bolter and feeder breaker have been purchased and will arrive at New Elk in April.
Finally, refurbishment of the railway and wash plant is nearing completion.
Based on the completed work, AHQ will begin producing material in the week beginning April 19.
Once production begins, AHQ has planned an 80,000-tonne shipment for delivery to Convent Marine Terminal in New Orleans for June.
Sales have initially planned to be on a spot shipment basis until trial and sample shipments are completed.
Once completed, supply contracts will be negotiated for 2022.
AHQ has ended the day 9.88 per cent in the green with shares trading at 8.9 cents in a $97.17 million market cap.