Lubelska Mine Project Update
You can read some information about Bankable Feasibility Study (BFS) prepared by Wardell Armstrong (WA) in 2009 for Lubelska No.1&2 Mine Project on our website
Also, you can find information regarding the assessment of the WA Bankable Feasibility Study performed by the experts from Poland and USA.
Institute of Economy of Mineral Resources of the Polish Academy of Sciences has developed “Assessment of Lubelska No.1&2 Mine Reserves and Resources” including plan on maximizing of coal extraction based on mining experience in Poland. The report of Polish Institute confirmed possibility of additional increasing of mine reserves at 17 Mt of high quality coking coal by means of mining some reserves in faulting zones located close to the mine border line and in protection pillars – some of the coal is planned to be mined towards end of the mine life. In such areas, in order to maximize coal extraction in addition to longwalls it would be possible and more rational to use shortwall or other methods of mining.
Company СЕТСО (USA) has prepared “Evaluation of Lubelska mine #1-2 of Coal Washing Plant Concentrate Yield per each longwall at Lubelska coalfield for SC CCI-Lubelya. CETCO estimations will allow planning underground mining works, in order to receive the coal concentrate yield of required quality depending on consumer needs. In terms of saleable product yield, estimations provided by CETCO confirmed the conclusions of Wardell Armstrong on saleable product quality being produced during mine operation life.
Mine production will be extended by means of including Lubelska No.3 area and some part of Lubelska No.4 area.
Reserves of Lubelska No.3 area are estimated in amount of 133 Mt (in category С1 – 103 Mt, in category С2 – 30 Mt). Coal resources of Lubelska No.4 area are estimated at 194 Mt. On completing detailed exploration of Lubelska No.3 area and some part of Lubelska No.4 area we expect to have additionally more than 200 Mt of recoverable coking coal reserves of grade ‘Ж’ (fat coal) for extracting by Lubeska No.3 mine. It is predicted to mine about 3 Mtpy of coking concentrate.
CCI-Lubelya has signed contract with IMC-Montan Consulting GmbH (Germany). According to an assignment for the provision of consulting services to the contract IMC-Montan Consulting GmbH will complete the following works until 10th June 2011:
- processing and interpretation of geological data of “Lubelska” No.3&4 area using 3D modeling;
- assessment of Inventory Coal in compliance with the JORC standard;
- concepts on technical aspects of coalfield access;
- justification of coal seam development systems applying new mining technology;
- assessment of investment to geological and exploration works.
Also we have just signed agreement with СЕТСО (USA) on preparation of “Recommendations as to development of flowsheet for coal washing from area No.3 - 4, as well determination of quality and quantity parameters of coal processing including concepts on increasing of total capacity of Lubelska No.1&2 Mine Preparation Plant together with block No.3 and block No.4” for CCI-Lubelya.
It is proposed to Lugansk Design Institute (Luganskgiproshakht) to prepare for SC CCI-Lubelya “Feasibility Study of Lubelya Deposit Development including Lubelska No.1&2 Mine, with future joining area No.3 and area No.4 to Lubelska mine. Geological 3D model prepared by IMC-Montan Consulting GmbH and reports of CETCO will be included to the “Feasibility Study…”. Reserves extent by means of including some part of block No.4 to block No.3 will be justified in “Feasibility study…”. For the purposes of determination of longwalls’ production, it will be made estimation based on achievements of coal extraction at Polish mines which use Bucyrus equipment. Such assessment will allow re-estimating of production per longwall at Lubelska No.1&2 mine, as well at block No.3 and block No.4. Also, general indicators of company activity will be determined considering development of block No.3 and block No.4.
The experience of Polish coal mines operating in the conditions similar to Lubelska No.1&2 mine will be of great help while projecting and determining feasibility study parameters of mine and production levels. At Bogdanka mine in Poland, using Bucyrus plow system, maximum coal production over 16000t per day has been achieved from longwall of 250 m long in the seam with thickness of 1,5 m, whilst average daily production is 11000 -12000t. Also good production results are achieved by mines of Jastrzębska Coal Group (Katowice, Poland). Based on results of work, it is intended to purchase other two Bucyrus plow systems by Jastrzębska Coal Group that envisages significantly increasing production of coal and at the same time reducing cost price of product.