JOGMEC Launches the JV Exploration for Anthracite Coal in Canada.
PDF version of this page (176 KB)August 29, 2016
Japan Oil, Gas and Metals National Corporation (JOGMEC: Minato-ku, Tokyo, President: Keisuke Kuroki) is pleased to announce that it entered into an agreement to jointly explore for anthracite in the Panorama North Project on August 24th, 2016, with Atrum Coal NL (Atrum), an Australian coal company.
The Panorama North Project (Panorama North) is situated in the southern part of the Groundhog Coalfield in the northwestern British Columbia, and regarded as highly prospective for anthracite coal resources.
Panorama North is the first anthracite JV for JOGMEC. JOGMEC has now formed three coal JVs in Australia, two in Canada and one in Indonesia since it commenced its coal JV scheme in 2013.
Japan imported about 6.3 million tonnes of anthracite in JFY2015, out of which more than 40% were imported from Russia and more than 30% from Australia. As anthracite reserves are estimated to occupy only about 1% of the world coal reserves, it is anticipated that once developed this project would contribute to diversify the supply sources of anthracite under the recent sharp decrease of anthracite supply for export market and could lead to reinforce Japan’s resources security.
Panorama North is the first anthracite JV for JOGMEC. JOGMEC has now formed three coal JVs in Australia, two in Canada and one in Indonesia since it commenced its coal JV scheme in 2013.
Japan imported about 6.3 million tonnes of anthracite in JFY2015, out of which more than 40% were imported from Russia and more than 30% from Australia. As anthracite reserves are estimated to occupy only about 1% of the world coal reserves, it is anticipated that once developed this project would contribute to diversify the supply sources of anthracite under the recent sharp decrease of anthracite supply for export market and could lead to reinforce Japan’s resources security.
Project Outline
1） Exploration area
Panorama North is located about 330km northeast of Prince Rupert with a coal export terminal and consists of 12 Coal Licences and Coal Licence Applications (about 74km2), where a coal-bearing formation has been identified by the past reconnaissance surveys. The Panorama North is westerly adjacent to the Groundhog North Project, a flagship anthracite project of Atrum.
2） JOGMEC farm-in condition
JOGMEC has the right to earn 21% participating joint venture interest in the project by completing its payment of C$3.0 Million as an exploration expenditure for the first two years. JOGMEC can elect to earn a further 14% (35% in total) participating joint venture interest by adding C$2.0 Million over the subsequent 12 months. JOGMEC can transfer its position in the joint venture agreement including its acquired interest to a Japanese company any time during the term of the agreement. Further, JOGMEC holds an exclusive right to negotiate with Atrum to participate in the Panorama West Project, westerly adjacent to the Panorama North for a period of four years from the effective date of the agreement.
3） Exploration
While no drilling has been conducted in the Panorama North Project before, Atrum and other previous tenement holders have carried out reconnaissance surveys in this area. As a result of these surveys, 9 shallowly emplaced anthracite seams have been identified in the Panorama North.
Atrum Coal NL
It is a coal exploration and development company listed on the ASX (Australian Stock Exchange) in 2012 and headquartered in Vancouver, Canada. It owns 5 coal projects of mainly anthracite and coking coal in Canada. In early August 2016, Atrum entered into a binding agreement to acquire a 26.68% stake in Atlantic Carbon Group PLC, an anthracite mining company operating in Pennsylvania, USA.
Groundhog North Project
The Groundhog North Project is the flagship anthracite project of Atrum in the Groundhog Coalfield and the first stage of the staged development of the Project is planned to produce 880,000 tonnes of anthracite products annually by underground mining and to export through Prince Rupert or Stewart. As a part of the activities for the first stage development, Atrum obtained a Bulk Sample Permit in May 2016 from the Government of British Columbia to extract up to 100,000 tonnes of anthracite in the Groundhog North Project and has been working on preparation for bulk sampling to supply anthracite to potential customers for testing at their plants.
Location of Panorama North Project
The inquiry about this page.
Coal Exploration Division, Coal Development DepartmentArai and Inoue
Tel +81-3-6758-8018
Fax +81-3-6758-8086
Public Relations Division, Administration Department
Tel +81-3-6758-8106
Fax +81-3-6758-8132
