Cash upbeat on use of Skagway terminal

Skagway Ore Terminal, located at one of the most popular destinations in Alaska for cruise ships, could be modified to receive shipments of coal, according to a review commissioned by Vancouver-based Cash Minerals. The company hopes to develop a mine at its Division Mountain property in Canada's Yukon and ship the 1.2 million metric tons of coal per year through Skagway to Pacific Rim markets.

Cash Minerals engaged Canadian consulting company Sandwell Engineering to conduct the review of the ore terminal. The review suggests that the existing terminal at Skagway can be modified to receive, store, reclaim and load coal into ocean-going bulk carriers. Modifications would include additional coal storage space and upgrading of the reclaiming and ship loading capabilities. Sandwell estimates that for a capital cost to the owner of C$9.4 million, the terminal can be upgraded to load Panamax vessels at a rate of 1,500 metric tons per hour.

Alaska Industrial Development and Export Authority, the contractual owner of the terminal, is negotiating with Cash Minerals over the possible use of the Skagway Ore Terminal for the shipping of Division Mountain coal. AIDEA has use of the docking facility at Skagway in conjunction with White Pass & Yukon Rail.