April 22nd, 2015 ~ Vol. 85 No. 22
Riversdale pitches Grassy Mountain
coal to Asian steelmakers
Crowsnest Pass Herald Front Page
Pass Herald Reporter
Riversdale Resources is already marketing Grassy Mountain coal to Asian steelmakers said managing director Steve Mallyon during the Crowsnest Pass Chamber of Commerce’s monthly meeting at Country Encounters on April 8.
“There are about 13 steelmakers that we’ve been talking to at the moment and the response has been positive to date,” said Mallyon.
Samples collected from over 430 bore holes, many of them drilled before Riversdale acquired the property, show that Grassy Mountain contains quality steelmaking coal.
“There’s the potential to produce an export product that usually goes to the steelmakers in Japan, Korea, China and Taiwan,” said Mallyon. “Very little would get to Europe but some would get to Brazil.”
A nine tonne sample sent for quality testing in Canadian, American and Australian laboratories contained no thermal coal, soft coals or other coal byproducts; just hard coking coal.
“Grassy is considered a premium hard coking coal. Similar to what some people see in Teck’s operations in the Elk River Valley,” said Mallyon.
The company hopes to take another large bulk sample and send it to steelmakers, he said.
In January, the company entered into a 10-year agreement with Westshore Terminals, located at Roberts Bank 35 kilometres south of Vancouver, that will enable the mine’s first ten million tonnes of product to be shipped to steelmakers in Asia.
Mallyon said the feasibility study is about 60 per cent complete and could be finalized in August before being sent to federal and provincial regulators. Riversdale is still conducting an environmental impact study, which was begun in July of 2013 and requires a four-season study over several years.
The Sydney based company has spent over $50 million acquiring coal properties in Crowsnest Pass, including the Grassy Mountain, which Riversdale estimates would produce two to four million tonnes of coal a year over 28 years. At four million tonnes, the mine would employ about 400 people not including subcontractors and support staff, said Mallyon.
Pending regulatory approval, construction on the project could begin in 2017 with the mine becoming operational in 2018.
“Riversdale objectives is to develop a very long lived project that will ride out the inevitable ups and downs of the coal market,” said Mallyon. “At the moment it’s at a low point.”
continued below...

According to Bloomberg Business, the benchmark price for steelmaking coal fell to a six-year low after Australian coal producers and Japanese steel mills agreed to a price of $109.50 per tonne starting April 1, which is down from $117 in the first quarter.
Metallurgical coal has fallen from a high of $330 per tonne four years ago because of slowing growth and a global glut.
Riversdale will be holding an open house on April 22 at Elks Hall in Blairmore from 2 to 8:30 pm to discuss their exploration results, financial impacts and rail load out options. Refreshments will be provided.
Last October, Riversdale revealed rail load out options for the Grassy Mountain project. All three options involved a conveyor belt transporting coal to a load out facility on secondary tracks along the railroad near Highway 3.
Two of the options would mean laying a looped track through about nine holes of the Crowsnest Pass Golf and Country Club. The clubhouse could also be affected.
Council passed a motion opposing the proposed rail load out options after an in-camera session of council on Oct. 7 over concerns associated with locating mining infrastructure near the community.
“We’re very conscious of the community issues related to noise, dust and visual impact and we’ve got some ideas of what we’d like to achieve but we’re also seeking ideas,” said Mallyon.
April 22nd ~ Vol. 85 No. 22
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