RE:Long-wall decisionMuch awaited decision. No one knows for sure. The coal from Donkin needs to be blended at it has higher sulfur levels than ideal. The center of the coal seam likely has lower sulfur levels so they could peel the top and bottom away and end up with 25% thermal and 75% semi soft. The coal has some very good qualities outside of the sulfur level...
I would suggest that SHCC or SSCC would sell at a 20 to 40 dollar penalty to PHCC. In the market that lasted for previous 2 years it would be 150 to 175 US currently 100 to 120 US a tonne.
The choice to go longwall will be weighted with the safety consideration which is the biggest plus of long wall as you eliminate the pillars and fully support the face being mined all the time. Also much is left in room and pillar as coal must support the roof.
Other good things about this mine is that while coal is being used it will be the lowest carbon coal available with short distance to blue water, very high calorie content per tonne of coal and low energy requirements to mine- think no strip ratio.