Strategy

The Company’s strategy is to create a significant mid tier coal company, through the expansion of activities at the Stockton anthracite mine, identifying additional sites in Pennsylvania and building its production and resource profile, by primarily acquiring defined assets in stable and recognised high quality coal regions.

At Stockton, significant investment and restructuring over the previous two years has created a strong platform for growth.  It is the Board’s intention to raise production and profitability of the operation following the restructuring and implementation of new mine plan, open up additional reserves on-site, which should extend the initial 10 year mine life from existing proven reserves, and increase production to 400,000 tonnes per annum.

The Board has identified opportunities to expand within the region and is involved in ongoing negotiations regarding adjacent sites, with the intention of acting as a regional consolidator in the Pennsylvanian Coal Field.  The Company is currently negotiating the recovery of reserves from other landowners on a royalty basis with 10 million tonnes probable additional reserves within 10 miles radius, and 300 million tonnes further probable reserves within 30 miles of Stockton.  Expansion within the local area has the potential to minimise upfront costs as the infrastructure, equipment and facilities already exist and are proven.

The Board is also committed to expanding its resource base and production profile through the acquisition of known / established coal exploration and production projects and sees an opportunity to consolidate coal assets in politically stable and established coal regions throughout the world.  To achieve this, the aim is to leverage its production assets at Stockton and utilise its paper to create maximum value for shareholders.