It is time for an update on the coal mine. Last month, the pending deal with the Australian company, Jameson Resources, fell through. They no longer have any interest in the mine and will conduct no further exploration.
Friday, August 06, 2010 Jameson Resources updates Basin Coal Mine Project status. Here is what they say:
Jameson Resources (ASX: JAL) has received notification that formal documentation to amend and extend the Option to Purchase agreement relating to the Basin Coal Mine Project with Project vendors Compliance Energy Corporation (CVE: CEC), could not be concluded due to the failure of Compliance Energy to secure certain waivers from Pacific West Coal Ltd (PWC), the lease holder.
The significance of the involvement of the British company (PWC) is unknown at this time. From a Coalmont perspective, the owner of the mine is still Compliance Energy.
Mining is a complicated business and there are many factors which can influence the outcome of a project. In this case there appears to have been a communications failure. Whether that was planned or not is unknown. Jameson reports:
The draft interim report shows that the project economics were severely impacted by increased operating costs largely as a result of projected processing efficiency being considerably less than that reported from the previous operations conducted at the project.
For now, the mine remains on care and maintenance and no future plans have been published. §