Attila Resources increases JORC resource at US coking coal project
It’s busy times for Attila Resources (ASX: AYA) after it appointed a new top leadership team and increased the JORC resource at its coking coal mining project in Alabama, USA.
AYA has a 70% stake in The Kodiak Coking Coal Mining Project in Alabama with a maiden JORC resource of 48.2M tonnes, aiming to bring a 2Mtpa mine on stream by 2015.
New coking coal deposit in Alabama
But AYA’s exploration effort at Kodiak has just increased its JORC resource by fining an inferred deposit of coking coal rated at 48.3M tonnes, boosting the company’s global resource by 61% to over 126M tonnes.
Coking coal is a high quality form of coal mainly used during the steel smelting process. It currently sells for around $140 a tonne. The coking coal AYA will mine at Kodiak is highly rated due to its low ash and sulphur content.
AYA requires capex of $27M for a staged development with full production capex of $52.1M. Infrastructure such as a processing plant, washing facility and cargo loading areas are already in place, pushing capex down and putting it in the lowest 10% of metallurgical coal producers.
Evan Cranston, Executive Director of AYA, says the second JORC resource at Kodiak is a boon for AYA as it seeks support in bringing its project on stream. “The robust maiden resource at Seymour provides confidence in the potential for these assets to significantly expand Attila’s future production profile, with only a modest incremental capex given the close proximity to Attila’s existing infrastructure,” he says.
New leaders for AYA
With much larger coking coal resources now on hand, the company has appointed a new leadership team to guide the company’s effort in bringing The Kodiak Coking Coal Project into production by 2015. The former managing director of Grange Resources (ASX:GRR) Russell Clarke has already taken the helm as Non-Executive Chairman, bringing with him a wide range of experience in the US coal industry.
Meanwhile, former BHP Billiton and Peabody Energy manager Scott Sullivan has been appointed as AYA’s new Chief Executive. Scott visited the Kodiak Project recently and says he was encouraged by what he saw. “The Kodiak Project is well positioned to progress toward production with very modest hurdles relative to the majority of projects I have been involved with in the past,” he says, singling out Kodiak’s low capex as a major advantage. “The significant pre-exisiting infrastructure, well established logistics network and premium quality coking coal product place Attila in an incredibly strong position to progress The Kodiak Project towards commercial production in the near term.”