The Tygart No 1 project received all essential federal and state approvals, but challenges lodged by a local anti-mining organization caused work on the project to be suspended in late 2008. Those challenges were overruled in March by the West Virginia Surface Mine Board, the company said.
Ben Hatfield, CEO and president of ICG, said: “We had planned to resume construction in mid-2011, but the strong market demand for Tygart No 1’s metallurgical coal product, and growing evidence of improving thermal coal pricing, led us to accelerate the project. The construction and development timeline anticipates initial coal production in late 2011 and longwall startup in early 2014.”
The company expects to finance the Tygart No 1 mine construction through operating cash flow. Development capital requirements are estimated at $325m, including $18m spent prior to 2010. As a result of resuming construction at Tygart No 1, the company now expects 2010 capital expenditures to increase by $15m to a range of $105m to $115m.
At full output, the Tygart No 1 mine is expected to produce 3.5 million tons per year of premium high-volatile metallurgical and high-quality thermal coal. The mine complex is projected to create over 300 direct jobs in the Taylor County, West Virginia area.
