Tigers Realm Coal (ASX:TIG) has the potential to be one of the world’s lowest cost coking coal producers with site operating costs of circa US$41 per tonne FOB at its current operation.
The company continues to ramp up mining since commencing coal production in December 2016 at Project F within its Amaam Coking Coal Project located in eastern Russia.
Amaam has a 632 million tonne resource base of high quality metallurgical coal with potential for further growth in a stable, supportive jurisdiction.
Coal is trucked from Amaam to the 100%-owned Beringovsky Port and Coal Terminal, located 37 kilometres by road to the north east of the Amaam North tenement.
Phase One of Project F is in production and ramping up to 600,000 tonnes per annum with relatively low capital expenditure required to grow Project F to an interim 2+ million tonnes per annum capacity.
Amaam Coking Coal Project
Two tenements, Amaam and Amaam North, together comprise the Amaam Coking Coal Project, located within 35 kilometres of the Bering Sea coast in Chukotka Autonomous Okrug, far eastern Russia.
Tigers Realm has 80% ownership of Amaam and has signed a Heads of Agreement which will see its 80% ownership of Amaam North increase to 100%.
Binding documents have been prepared and will be signed pending some administrative restructuring requirements currently in process.
The company owns 100% of the Beringovsky Port and Coal Terminal, located 75 kilometres by road to the north east of the Amaam North tenement.
Amaam and Amaam North have combined JORC compliant coal resources of 632 million tonnes with the majority of these resources being of coking coal quality.
Project F within Amaam North has 110.6 million tonnes of coal resources, 16.1 million tonnes of which have already been classified as Product (Marketable) Reserves under JORC.
Development strategy
TIG’s strategy is to become a significant supplier of 5 to 10 million tonnes per annum of coking coal to the seaborne market via the staged development of the Amaam North and Amaam coal basins.
This will be achieved through three stages.
Stage 1: Development of Project F to 1.0 million tonnes per annum semi-hard coking coal operation shipping through company owned Beringovsky Port.
Stage 2: Production increases from Project F which is open to depth and along strike, and many prospective areas of outcropping Middle Chukchi coal on Amaam North.
Stage 3: Development of Amaam to full capacity and the establishment of a transportation corridor to a year round port at the deep water Arinay Lagoon. Open pit pre-feasibility study estimated 5 million tonnes per annum production.
Project F: Phase One progress
Up to April 30,, 97,000 tonnes of coal has been delivered to port in the first 4 months of production.
First cargoes will be shipped in June 2017 and the second stage of road construction will provide year-round haulage.
With site operating costs of circa US$41 per tonne FOB, Project F has the potential to be one of the world’s lowest cost coking coal producers.
Project F has a low stripping ratio, short overland transport to port, and low third party charges due to ownership of the port.
Quick facts: Tigers Realm Coal Ltd