Coal miner climbs on permit news

Shares of Phoenix Coal (TSX: T.PHC, Stock Forum) jumped 13% to 30 cents Tuesday, as the company says it has received the final permit for its KO mine in Kentucky, which authorizes the company to start mine development and coal production at the site.

The producer and consolidator of thermal coal reserves in the Illinois Basin says that prior to receiving the most recent permit from the United States Army Corps of Engineers under Section 404 of the Clean Water Act, it received the other required permits, including the Kentucky Department of Natural Resources state mining permit and the permit required under Section 401 of the Clean Water Act.

"Receiving the final KO permit is an important milestone for our Company." said David Wiley, president and CEO of Phoenix Coal. "We have now received all of the necessary permits we need to execute our 2009 production and sales plan. The KO mine is expected to contribute over 400,000 saleable tons this year and is expected to reach full production levels by late June."

The company notes that as a result of the issuances of the delayed permits, it will be lifting its force majeure declaration following the ramp-up of production at the KO Mine.

On the company’s Bullboard Tuesday, marketmover1 said: “That is excellent news. Production to ramp up and full production expected by the end of June producing 400k tonnes of coal for this year. I believe most if not all of this production will fetch spot market prices. Looking for a very profitable second half to this year. Now if PHC can get the gryphon project going[sic].”