Montem Resources secures final reference terms for EIA submission to re-start Tent Mountain coal mine

Montem Resources ASX MR1 reference terms EIA submission re-start Tent Mountain coal mine
Montem Resources plans to submit its EIA along with mining licence applications for Tent Mountain later this year.

Montem Resources (ASX: MR1) has received the final terms of reference regarding the environmental impact assessment for its proposed Tent Mountain hard coking coal mine in Alberta – enabling the company to submit its EIA and mining re-start applications.

Canada’s Alberta Energy Regulator has now published the final reference terms for the EIA over Tent Mountain, with Montem saying the terms are consistent with its expectations.

This follows extensive public consultation that took place earlier this year.

Montem managing director and chief executive officer Peter Doyle said publishing of the reference terms was an “important milestone” for the company.

He said it paves the way for Montem to submit the application to re-start mining at Tent Mountain.

“Most of the work required to support the application has been done and we will move rapidly to complete remaining reports for the EIA.”

“We expect to lodge the EIA, mine licence applications and accompanying permit amendments later this year,” Mr Doyle added.

The EIA will provide an examination on the potential environmental and socio-economic impacts of re-starting Tent Mountain.

Tent Mountain re-start

Montem is targeting first coal shipments from Tent Mountain in 2023 and has already secured rail and port capacity in readiness.

The company also has access to water and power for the mine’s re-start.

At Tent Mountain, Montem plans to produce 1.1 million tonnes per annum of coking coal for an initial 14 years.

Annual earnings before interest tax depreciation and amortisation of $65 million have been estimated from the mine.

Underpinning this are 60Mt of coking coal resources with 22Mt of run of mine reserves and 13.1Mt in estimated reserve product.

To re-start mining at Tent Mountain, Montem’s definitive feasibility study estimates capital expenditure of US$161 million will be required.

Montem has pencilled in mine construction and development to begin next year.

As well as Tent Mountain, Montem is fast-tracking exploration at the nearby Chinook project where it has devised an exploration target between 65-125Mt coking coal.

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