Xinergy Ltd. Receives Permits for Preparation Plant and Loadout Facilities at South Fork Metallurgical Coal Project
Toronto Stock Exchange: XRG
KNOXVILLE, TN, Oct. 16, 2012 /PRNewswire/ – Xinergy Ltd. (TSX:XRG) (“Xinergy”
or the “Company”), a Central Appalachian coal producer, today announced
that its wholly-owned subsidiary, South Fork Coal Company, LLC,
received requisite approvals to begin construction of its preparation
plant and rail loading facility at its mid-volatility metallurgical
coal project in Greenbrier County, West Virginia.
The Company will begin site preparation work immediately and plans to
commence construction during the 2012 fourth quarter. Construction of
the preparation plant and rail loading facility is expected to take six
to nine months at a capital cost of approximately US$20 million.
Consistent with prior guidance, the Company expects to produce 300,000
to 400,000 tons of premium-quality, Sewell seam mid-vol metallurgical
coal in 2013, reflecting a rate of approximately 50,000 tons per month
following completion of the preparation plant and rail load-out.
Xinergy continues to anticipate cash costs of approximately $100/ton
once this production rate is achieved, and believes South Fork will
have capacity of approximately 80,000 tons per month.
For further details regarding reserves and quality, see the Technical
Report for the project entitled “An Independent National Instrument
43-101 Report Summarizing Mineral Exploration, Development and
Production Activities of South Fork Coal Company, LLC Mining Reserves,
Greenbrier County, West Virginia” dated of March 16, 2011 by James S.
Canterbury, P.E., M.B.A. of Summit Engineering, which is available on
the SEDAR website (www.sedar.com).
Matt Goldfarb, Xinergy’s CEO, commented: “Today marks a significant
milestone for our Company, reflecting the perseverance and commitment
of our entire West Virginia team. Bernie Mason, our President, and our
engineering and permitting group in West Virginia have done an
admirable job in the face of an extremely challenging regulatory
environment in advancing our South Fork mid-vol project to position the
Company for a long-awaited step-change in our production profile.
Despite near-term weakness in metallurgical coal pricing, the Company
remains bullish on the long-term fundamentals for the global steel
industry and, in particular, believes that its ultra-premium South Fork
mid-vol met reserves will preserve a niche market position for Xinergy
through the cycle.”
James S. Canterbury, P.E., M.B.A. of Summit Engineering is the Qualified
Person in accordance with National Instrument 43-101 responsible for
the technical content of this release and has reviewed and approved it
About Xinergy Ltd.
Headquartered in Knoxville, Tennessee, Xinergy Ltd., through its wholly
owned subsidiary Xinergy Corp. and its subsidiaries, is engaged in coal
mining in eastern Kentucky, West Virginia and Virginia. Xinergy sells
high quality thermal and metallurgical coal to electric utilities,
steelmakers, energy trading firms and industrial companies. For more
information, please visit www.xinergycorp.com.
This release contains “forward-looking information” that includes
information relating to future events and future financial and
operating performance, including management’s assessment of Xinergy’s
future outlook, future capital costs, production rates, costs
associated with production, and production capacity. Forward-looking
information should not be read as a guarantee of future performance or
results and will not necessarily be accurate indications of the times
at, or by which, that performance or those results will be achieved.
Forward-looking information is based on information available at the
time it is made and/or management’s good faith belief as of that time
with respect to future events, and such information is subject to risks
and uncertainties that could cause actual performance or results to
differ materially from those expressed in or suggested by the
forward-looking information. Forward-looking information is based on a
number of factors and assumptions made by management and considered
reasonable at the time such information is provided.
Important factors that could cause these differences include but are not
limited to: changes in contracted sales; the Company may be adversely
affected by other economic, business, and/or competitive factors; the
worldwide demand for coal; the price of coal; the price of alternative
fuel sources; the supply of coal and other competitive factors; the
costs to mine and transport coal; the ability to obtain new mining
permits; the costs of reclamation of previously mined properties; the
risks of expanding coal production; the ability to bring new mines on
line on schedule; industry competition; the Company’s ability to
continue to execute its growth strategies; and general economic
conditions. These and other risks are more fully described in the
Company’s filings with the Canadian Securities Administrators,
including its Annual Information Form, available on SEDAR at www.sedar.com. You should not put undue reliance on any forward-looking information.
We assume no obligation to update forward-looking information to
reflect actual results, changes in assumptions or changes in other
factors affecting forward looking information, except to the extent
required by applicable securities laws. If we do update one or more
forward-looking information, no inference should be drawn that we will
make additional updates with respect to those or other forward-looking
SOURCE Xinergy Ltd.