Regency Owns a 20% Stake in the Rosa Metallurgical Coal Mine in Blount County, Alabama, USA
Regency Owns 20% of UK Carbon Minerals Operating the Rosa Coal Mine
Rosa Metallurgical Coal is a Mid Vol Coal with Low Ash and Sulphur
Rosa Mine Owns a Coal Wash Plant With the Ability to Wash Both Internal and External Coal
Rosa Has Multiple Off-take Partners Available - Including Coke Producers, Activated Carbon and Filter Manufacturers
Regency With 20% Stake in Producing Coal Asset – Located in the Prolific Warrior Coal Basin
Experienced Coal Management Team in Place
Existing Mine and Infrastructure – Mine Restart Effort
NI43-101 With 453,000 Tons of Coal – Significant Expansion Potential
Immediate Cash Flow Generation to Regency
Rosa Mine located in Blount County, Al in the Plateau Cold Field of the Southern Appalacians. Recent US figures indicate that 37 coal mines were operating in Alabama in 2015 and they produced 13.2m tons during that year. The Rosa mine produces high quality mid-vol metallurgical col with low ash and sulphur. Output from the Rosa mine has been sold to various parties in the Birmingham area and uses included coke production, filters and activated carbon products.
The area around the Rosa coal mine was surface mined extensively from the 1960s on to the early 1980s by Calvert and Marsh, and by the end of this period some 5m+ tons of coal were produced covering 2,500 acres. Regency’s partner, UK Carbon Resolutions has acquired the Rosa mine out of a near bankruptcy situation.
The mine is backed by a NI 43-101 resource of 450,000 tons, that covers only a small portion of the available acreage. The property further comes with a wash plant in place with the ability to wash coal for both its own use and for external customers. Post washing Rosa coal has been tested to average the following figures:
- 1.81% Ash
- 26.20% VM
- 71.91% FC
- 0.85% SUL
UK Carbon Minerals intends to remove the remediation built up on the existing highwalls created by Calvert and Marsh and to exploit the 16-22in coal seams left behind by their original mining process. Utilizing both auger and highwaller machines as deemed appropriate, production is expected to start in early 2017.
Initial projections for 100,000 tons of coal in the first year have now been expanded and further information will be made available once initial production details are available.