The new permit will allow the firm to immediately begin mining operations in the mine spread across 563ha with about 448ha mining area.
BCC vice president Tom Lewis, commenting on the permit said, "We are excited about our new Old Union II permit as it will allows us to expand our mining operations, increase our production of high quality thermal coal and continue to meet our customer commitments".
CanAm said that the total recoverable coal in the Old Union II area would be around 1.27 million tons and its coal would be similar to that of the coal being mined in the first Old Union mine with 9% ash, 1.0% sulfur and 12,400 BTU/lb.
The firm expects the total annual production from both mines together to be between 360,000 to 400,000 tons per annum, upon commencement of Old Union II mine, which is slated for September 2012.
The existing Old Union mine has produced around 110,000 tons of coal during the first half of 2012, according to the company.
Further, BCC has also acquired surface mining leases for two more tracts of land, comprising 53ha, within the Old Union and Old Union II mine complex.
The 16ha first lease, acquired from Molag Timberpropr constitutes 9ha mineable area, while the 37ha second lease, called H.H. and Alice Kilgore property, has 25ha mineable land.
The Kilgore property is believed to avoid the need for bridge project by offering the company direct access to the eastern portion of the Old Union II mine site from County Road 21.
