One of the largest metallurgical coal deposits on earth could soon be producing coal for export, thanks to London, Ontario-based Fortune Minerals Limited (TSX-FT). Fortune recently signed a joint venture agreement with POSCO, the third largest steelmaker, whereby POSCO will pay 20% of the capital costs in developing Fortune's Mount Klappan anthracite coal deposit, located in northwest British Columbia, Canada. In exchange, POSCO will receive 20% of the mine's production.
Mount Klappan is Canada's only known deposit of anthracite — a high-carbon coal used in steelmaking and as a blended coal for coke production — and one of the world's largest undeveloped deposits of metallurgical coal. There are 2.8 billion tonnes of coal spread over four areas, including 231 million tonnes in the measured and indicated category. Robin Goad, President and CEO of Fortune Minerals, talks to MINING.com about the JV with POSCO and the plans for mining Mount Klappan.