A simplified mine plan at the New Elk coking coal project, in Colorado, has reduced both the start-up and sustaining capital for the project, while allowing ASX-listed Allegiance Coal more time to assess its production ramp-up options.
An initial feasibility study (FS), completed in November last year, estimated that the project would require a start-up capital investment of $56-million, to support a two-million tonne a year operation, over the first four years of the operation, with a mine life of 23-years, based on a saleable coal reserve of 45-million tonnes.