Western Canadian Coal Suspends Development at Willow Creek Mine
11/28/2008 - Western Canadian Coal says it will temporarily suspend mining operations and future capital expenditures at the Willow Creek Mine at the end of November 2008.
Despite a successful start-up of mining operations, Western Canadian Coal Corp. has announced it will temporarily suspend mining operations and future capital expenditures at the Willow Creek Mine at the end of November 2008.
The company said its decision was based on the current volatility and global economic uncertainty that continues to impact the demand for metallurgical coal.
"Other than capital spending required to sustain operations at our Wolverine and Brule mines, we have begun a plan to suspend all capital expenditures,” said John Hogg, President and CEO of Western Canadian Coal Corp. “We are also reviewing all non-discretionary spending to contain our mining cash costs. We believe these difficult actions are required to help the Company weather the short-term market uncertainties to protect the Company's growth for the long-term."
The company said that future decisions on restarting mining operations and expansion plans at the mine and plant will resume once clarity on next year's coal prices and commitments become more visible.
Western Canadian Coal produces high-quality metallurgical coal from mines located in the northeast of British Columbia, and sells its coal to many of the world’s top steelmakers. The company also has interests in various coal properties in northern and southern British Columbia and a 50% interest to explore and develop the Belcourt and Saxon group of properties in northern B.C. Currently, these properties provide the company with an estimated 15 years of coal reserves at current production levels.
