The mining newspaper for Alaska and Canada's North
The mining newspaper for Alaska and Canada's North
PacRim Coal LP March 31 said it has suspended its pursuit of the permits for development of the Chuitna coal mine in Southcentral Alaska.
"Following several months of internal review and discussions, the partners in PacRim Coal LP have decided to suspend pursuit of its permitting efforts to invest in other projects," the company posted in a statement.
Officials at PacRim declined to comment further on the decision.
If developed as planned, Chuitna would have produced at least 300 million tons of ultra-low sulfur, sub-bituminous coal over an initial 12-year mine-life.
This coal was planned to be shipped to Asia markets.
Chuitna was originally evaluated through an environmental impact statement and nearly permitted in the 1990s, but a coal mine was never developed.
With the increased demand and price of steam coal, PacRim put the project back on the regulatory track in 2006.
The Alaska Miners Association said it is disappointed that the investment and jobs from developing a mine at Chuitna will not be realized.
"For a company to conclude there are better places than Alaska to invest millions of dollars is discouraging at best," said AMA Executive Director Deantha Crockett.
"The Chuitna coal mine was projected to exceed an investment of US$600 million in the project's development and operation.
The mine would have created up to 500 jobs during construction and 350 full-time, year-round jobs during operation, and exceed US$300 million in revenues to the Alaska Mental Health Trust and millions of dollars to local governments and the State of Alaska.
At a time when we're seeing thousands of layoffs and budget deficits in the billions, it is more important than ever to ensure Alaska has policies that encourage investment in our economy."
Over his more than 16 years of covering mining and mineral exploration, Shane has become renowned for his ability to report on the sector in a way that is technically sound enough to inform industry insiders while being easy to understand by a wider audience.
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