UK-based Derek Parnaby Cyclones International (DPCI) will deliver a modular coal handling and preparation plant to Tigers Realm Coal (ASX: TIG) Amaam coking coal project in Russia under a $10 million deal.
DPCI will construct and supply the modules for the 150 tonnes per hour modular coal handling and preparation plant in time for the next stage of the project’s development.
It will enable Tigers to sell a higher-value product of consistent quality into global semi-hard coking coal markets.
The modular concept was chosen with the help of leading international coal preparation experts, taking into account the location and climate conditions of Tigers’ Russian operations, with all processing elements designed to optimise yield and product quality on run-of-mine coal material.
The selected technology is reported to be readily scalable by adding further modules when more production is required.
Tigers has confirmed it has engaged a Russian engineering firm for the civil works necessary to support installation of the plant, which will arrive as ready-to-assemble container-sized elements.
Process-ready modules will enable rapid assembly and commissioning of the plant, and allow Tigers to target first washed coal production as early as next year.
Once operational, the coal handling and preparation plant will bring the Amaam North product mix up to 80% metallurgical and 20% thermal coal, from a current split of 30% and 70% respectively.
Asian coal market
Tigers chief executive officer Dmitry Gavrilin said the company will market the plant’s output into the north-east Asian coking coal market where it is seeing “positive price support”.
“In signing this contract, we are taking a major step in the development of our coking coal assets and once online, this plant will allow us to crystalise [their] real value,” he said.
Mr Gavrilin said process design and plant layout together with foundation design work was completed during the September quarter.
Completion of works under the contract remains subject to Tigers arranging suitable financing.
The Amaam coal project is located in the Beringovsky Basin in the Chukotka Autonomous Okrug in Russia’s Far East, 40km to the south of the Nagornaya coal mine.
Comprising the Amaam North and Amaam deposits – located within separate structural blocks of the Bering Coal Basin – the project has a combined resource of 632Mtwith what Mr Gavrilin considers to be “excellent potential exploration upside”.
Tigers is developing Amaam in three stages with the aim of supplying up to 10Mtpa of coking coal to the seaborne market.