TORONTO — The Saskatchewan coal industry was bustling with activity again this week as more companies filed applications for coal permits with the local government.
On Thursday, Sidon International Resources Corp. joined the group of interested explorers, by saying that it's filing an unspecified number of coal permits.
The company said that the applications cover 18,432 hectares in east-central Saskatchewan near a recent coal discovery made by Goldsource Mines Inc.
Goldsource recently came across coal while drilling the area for diamonds, sparking a flurry of interest and speculation around just how big the potential coal system could be.
Last week, a rush of applicants joined in what Chris England, president of two companies applying for permits, called a “modern day coal rush.”
This week, Rocher Deboule Minerals Corp. was added to the growing list after announcing a deal to acquire 12 coal permit applications from Rain Investments Ltd. covering 9,300 hectares, and located 300 kilometres northwest of the Goldsource coal discovery.
Meanwhile, Remstar Resources Ltd. has agreed to buy 24 coal permit applications in a nearby area for about $158,000 in cash and shares, plus additional royalties.
Coal prices have skyrocketed over the past year as developing nations like China drive up demand. Both steel production and forms of electric power generation require coal as a form of fuel.
In April, the price of premium grade hard coking coal tripled out of the Port of Vancouver, hitting $300 (U.S.) per metric tonne, driven partly by higher crude oil prices.