Bens Creek increases mining contract for West Virginia metallurgical coal project

By Joe Hoppe

Shares of Bens Creek Group PLC rose on Friday after it said it had entered into a mining services contract with Mega Highwall Mining LLC, with Mega producing Bens Creek metallurgical coal reserves for a first year.

Shares at 07:20 GMT were up 3.0 pence, or 17.1% to 20.5 pence.

The West Virginia-based miner said the companies agreed to a fixed price per metric tonne of coal produced during the period, with a minimum production capacity of 480,000 tonnes per year.

Mega will deploy a single high-wall miner, designed to achieve a target sales volume of 22,000 tonnes of coal per month, as part of the offtake agreement signed with Integrity Coal Sales, Inc. on October 21.

The excess production of 18,000 tonnes per month can be sold under any future offtake agreement Bens Creek makes at market prices, the company said.

Bens Creek did not provide a figure for the fixed price, but said it was in line with its working capital projections. Production will begin in December.

“We are now on the right track to start generating income from our significant mining asset. The global scarcity of building materials strengthens our strategy and role as a supplier of metallurgical coal to the steel industry,” said said general manager Adam Wilson.

Write to Joe Hoppe at [email protected]

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