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Xstrata Coal to buy Sukunka coking coal deposit from Talisman Energy for US$500 mln

Xstrata Coal to buy Sukunka coking coal deposit from Talisman Energy for US$500 mln

Xstrata (LON:XTA) said Xstrata Coal is buying the Sukunka hard coking coal deposit from Talisman Energy (TSE:TLM) for US$500 million in cash.

Sukunka is located in the Peace River coalfield of northern British Columbia and contiguous with First Coal Corp and Lossan tenements acquired by Xstrata Coal in August and October 2011 respectively.

Sukunka has an NI 43-101 compliant coal resource of 236 million tonnes in the measured and indicated categories. 

Norwest Corp has completed a pre-feasibility study for a longwall mine producing hard coking coal. 

Xstrata Coal chief executive Peter Freyberg said: “Based on our due diligence and technical analysis, Sukunka has the potential to be a high quality metallurgical coal mine. 

Once developed, Sukunka would meaningfully increase our exposure to hard coking coal, while unlocking synergies with our neighbouring assets in the Peace River coalfield and providing additional regional scale."

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October 17 2016

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