Via its 70% ownership of Kodiak Mining Company, based in Birmingham, Alabama, New Century Resources is focused on becoming one of America’s next mid-tier coal producers by developing the Kodiak Coking Coal Project into an operating mine producing high quality coking coal.
Kodiak Coking Coal Project, Alabama USA
The Kodiak Coking Coal Project covers 3,115 hectares and comprises of the Gurnee property located in Shelby in Alabama, USA. The Gurnee Property (acquired in June 2012) is currently host to a 76.4Mt Measured and Indicated Resource.
The Kodiak Project is located in the Cahaba coal basin in Alabama, USA. The Cahaba coal basin is the oldest coal mining district in Alabama and dates back to the civil war era. The Cahaba basin contains 6 minable coal seams of metallurgical quality. Coal mining commenced on the Gurnee Property of the Kodiak Project by drift mining where the coal outcrops and was subsequently mined underground via continuous miners.
Kodiak Coking Coal Project located in Cahaba Basin, Alabama, USA
Kodiak operated the Coke No. 1 Mine on the Gurnee Property up until the end of 2008 when it was placed on care and maintenance. New Century Resources understands that the reasons for this decision were due to underperformance by the mining contractors and ventilation issues due to inadequate mine planning and funding.
Infrastructure and Logistics
The Kodiak Project is ideally located to take advantage of existing logistical infrastructure that can cater to both the domestic and export markets. With a heavy gauge rail line running through the Kodiak property and a loadout facility on site, there is immediate access to the extensive rail network traversing the United States and from there, 3 major coal handling ports. There is also the possibility of barging coal along the Black Warrior and Tombigbee Rivers which will be investigated as part a study on the export market potential. Importantly, it is envisaged that there will no major CAPEX requirements necessary for either domestic or export sales. With no existing offtake agreements in place, the Company has maximum flexibility to derive value.
Rail and River Networks across Alabama
As part of the acquisition of the Kodiak Project, New Century Resources acquired all of the plant and equipment, surface rights and other infrastructure located on the Gurnee Property including:
- 5 parcels of surface land (42 hectares) on which the existing infrastructure is located;
- Water storage and associated infrastructure;
- Coke No. 1 Mine with power grid, mine substation, mine office, maintenance shed, storage shed and Joy mine fan;
- 300 tonne per hour preparation and wash plant with heavy media circuit, 2 radial stackers, rotary breaker and structure with 3m x 6m double deck screen;
- A warehouse with inventory from Joy manufacturing, Long – Airdox, Fairchild and Fletcher etc;
- Various underground mining equipment including roof bolters, continuous miners, battery scoops, personnel carriers and pickup trucks;
- Office and bath house complex;
- 10,000kva substation;
- Workshop with 23 tonne crane and other miscellaneous parts and tools; and
- Rail spur infrastructure with 55 car loadout and locomotive.