Spiro Metallurgical Coal Mine Project
This metallurgical coal mine has approximately 50 million tons of reserves and is currently in operation with production of 500,000 ton per year.
This mine was in operation in 2006 and 2007 before being closed due to a restructuring of the owner's organization and its relationship with the subsidiary responsible for the mine. During the operation, approximately 50,000 tons of coal were mined and sold.
The project controls the coal rights to approximately 2,872 land acres in northwestern LeFlore County, OK. The Hartshorne coal seam outcrops across the northwestern portion of the mine and is planned for underground development.
The weight-averaged quality of the in-place coal seam, that is raw coal on a dry basis, is projected as follows:
The mine is located in northwester LeFlore County in the State of Oklahoma.
The terrain is gently rolling, ranging from 430 to 600 ft in elevation. The Arkansas River receives drainage from the area, with Redbank Creek crossing the northwestern portion of the property and draining into Cache Creek which extends into the northern margin of the property. The property is crossed by routes State 9 and US 59 with secondary county roads providing further vehicular access.
The location of the coal leases is shown below:
The reserve base is defined as that portion of the identified coal resource meeting specified minimum physical and analytical criteria related to demonstrated mining and production practices. The reserve base may include tonnages which are economic, marginally economic, and some sub-economic. Economic viability of any reserve is directly related to current market conditions or sales commitments, location, seam conditions, and capability of the mining company.
The mine location outside of Spiro, OK has favorable logistics characteristics.
Loading for transportation by river barge to New Orleans via the Arkansas and Mississippi Rivers can be made in Keota, OK or Fort Smith, AR.
Loading for transportation by railroad to several ports located in the Gulf of Mexico in Texas, Louisiana, and Alabama can be made at Spiro, OK. A coal loading facility will need to be constructed adjacent to the Kansas City Southern Railroad (KCSRR). This facility will be designed to a capacity commensurate with the projected 500,000 ton production levels for the project.
Below is the system map of the KCSRR showing all of the locations mentioned above. Refer to the map on page 6 to identify the locations of Keota, OK and Fort Smith, AR as well as the location of the Arkansas River. The Arkansas River connects to the Mississippi River system north of Greenville, TN.
The U.S. ports in the Gulf of Mexico can be used to connect via ocean Mine Location transportation with customers in Europe, South America, and Asia.
In addition to servicing the ports in the Gulf of Mexico, railroad transportation can be made to the West Coast Ports of Mexico to connect via ocean transportation with customers in Asia.
Transportation from the mine to the barge loading facility in Keota, OK is 15 miles; to the barge loading facility in Fort Smith, AR it is 24 miles. Transportation to the rail loading facility in Spiro, OK is 5 miles.