Coal miner to seek regulatory approval for Alberta mine

Grande Cache Coal Corporation (TSX: T.GCE, Stock Forum) intends to seek regulatory approval for the No. 12 South B2 Underground Mine in west-central Alberta, the company reported after Tuesday’s market close.

“The purpose of this mine is to provide a successor mine to the Company's present No. 7 Underground Mine. As the proposed underground mine will be a multi-seam operation that starts at the highwall of the present No. 12 South B2 Surface Mine, it will require no additional surface disturbance or changes to the existing haul road,” says the Alberta-based company.

Subject to required regulatory approvals, Grande Cache says it will be prepared to start site preparation for surface portals in early 2010.

"The new mine will be a successor mine to our current No. 7 Underground Mine and provide continuity for our underground workforce and the community" says Robert Stan, president and CEO of Grande Cache Coal.

"Our company has made a significant investment in underground mining expertise, training and equipment and has gained operational experience at the No. 7 Mine that will carry over into the new No. 12 South B2 Underground Mine. Current world pricing and demand for export metallurgical coal is depressed, however, our company must prepare for the future and secure mining approvals so that production can be increased as world markets recover,” he adds.

On the company’s Bullboard, mr1derful made the following comments about the news:

GCE currently has an underground mine called No 7-4 underground. The mine will be depleted around the end of calendar 2010. The news release states GCE will seek a permit for the new no 12 South B2 underground mine. Once the no 7-4 mine is depleted, GCE will transfer the equipment and crew to the no 12 South B2 U/G mine. The news is good as it means GCE sees a recovery in the coal markets for the future. Production will commence at no12 south b2 u/g in calendar 2010. If GCE wasn't confident in the future they could have postponed the process of obtaining the permits[sic]

Shares of Grande Cache Coal were up 19% to $1.37 Wednesday.