The Pardee Metallurgical Coal Mine (Pardee or Pardee Complex), acquired by Coking Coal LLC, a wholly-owned subsidiary of Coking Coal Pty Ltd (Company or CCL), consists of 253m tons of High Vol metallurgical coal (JORC)., an additional 30m tons of High Vol metallurgical coal (JORC Measured and Indicated Resource), a 5.6mtpa raw Coal Handling Preparation Plant (CHPP), load-out facilities capable of loading a 10,000t train in under four hours, offices, workshops, spares, conveyor systems, impoundment, leases and mining permits (currently being transferred to Coking Coal LLC by the relevant governmental authorities). Pardee has a 20-year track-record of producing marketable hard coking coals and mine plans have been developed to produce approximately 3.4mtpa of High Vol coals, with a planned mine life of over 28 years. The Company is currently expanding the JORC Reserve and JORC Measured/Indicated Resource.
The Pardee Complex was constructed by Arch Coal in 1996 at a cost of approximately US$180m. The CHPP and load-out areas underwent a US$25m upgrade in 2014, but Pardee has been closed since 2016 when Arch Coal, at the low point of the coal cycle, focussed on developing their hard coking coal Leer mine.
The JORC Reserve and JORC Measured and Indicated Resource, is a high quality, high vol met coal with low sulphur, low ash, good ash chemistry and high Free Swell Index, which enables high productivity in blast furnaces. The geology is well known due to the previous years of operation and high-level interpretation with over 300 cored drill holes across the property.
The Norfolk Southern rail line on the property leads directly to Hampton Roads Port which is located approx. 450 miles to the east and, due to the downturn in the thermal coal market, has more than 20mtpa of excess capacity.
Mining at Pardee is expected to predominantly utilise proven underground mining methods, continuous miners and directional drilling extraction. With methane extraction having occurred over the last 28 years, there is little, if any, methane expelled in to the atmosphere during the mining process. This helps keep the Company’s carbon footprint low, as every tonne of methane expelled into the atmosphere equates to 25t of CO2.
The Company is already engaged in sales discussions with historical buyers of the Pardee coals, as well as potential new steel mill customers, regarding a range of metallurgical coal products, with specifications targeted to improve steel mill performance.
Location of Pardee
Pardee permits and boundary
Pardee Train Loadout
Pardee 750 tph 3 stage CHPP
The Pardee Met Coal Complex, Virginia, USA