During a recent trade mission to China, B.C. Premier Christy Clark announced that a joint venture is planning to invest more than one billion dollars on the construction of three underground coal mines proposed for northeastern B.C.
staff writer
During a recent trade mission to China, B.C. Premier Christy Clark announced that a joint venture is planning to invest more than one billion dollars on the construction of three underground coal mines proposed for northeastern B.C.
“The construction of Gething Project will bring benefits to other industries in B.C. as well, such as building materials industry, machinery and maintenance industry,” said Nie Baozhong, general manager of Canadian Kailuan Dehua (CKD) Mines Co., Ltd.
“We will continue to co-operate with local government, community, First Nations and all stakeholders to contribute to B.C.’s economy.”
Clark led a trade mission to China between Nov. 4 and 9 to meet with government officials and business leaders in Beijing, Shanghai, and Guangzhou.
The trade mission is focused on promoting B.C.’s strong investment climate and business development in transportation, international education, mining, forestry, liquefied natural gas, seafood promotion and technology.
The first investment planned by the CKD is the Gething Coal mine, which is 25 kilometres south of Hudson’s Hope.
CKD has undertaken the initial consultation with local First Nations, as well as the local communities of Hudson’s Hope and Chetwynd. Construction is scheduled to begin in about two years after the environmental assessment, permits and First Nations and community consultation are complete.
According to CKD, the construction of the Gething Project will create 773 longterm direct jobs, along with another 4,000 indirect jobs. The coal mine should have a mine life of more than 40 years and the company projects a production rate of two million tonnes of washed coal per year.
The total investment is estimated by the company to be $860 million.
The CKD joint venture is a partnership formed in July 2010, which includes the Kailuan Group Co., Ltd, Shougang Group and Canadian Dehua International Mines Group Inc. Kailuan Group is the largest shareholder in the CKD partnership and the oldest underground coal mining, washing and distribution company in China, with more than 133 years of experience.
The second largest shareholder in the CKD partnership is the Shougang Group, which is China’s largest steel producer.
In the second investment, Shandong Energy Feicheng Mining Group Co. Ltd. and Canadian Dehua International Mines Group Inc. have an agreement to invest $500 million in the early phase of an unnamed project.
However, Canadian Dehua International Mines Group Inc. announced on May 31 that environmental assessment and permitting for three projects could be allowed to proceed together under B.C.’s dual track process.
The three projects named to go through this process are the Gething project, as well as the Murray River and Bullmoose projects near Tumbler Ridge.
HD Mining International Ltd (HDMI) was established in British Columbia on June 9, 2011 to invest, develop and operate the Murray River Project.
The transfer of Chinese underground coal mining expertise and investment is well underway with US$30 million already invested on project preparation.
Another US$100 million is already in HDMI’s accounts and ready for further deployment.
The King Gething Coal Mine closed down after the Second World War, but viable resources still exist in the area.
The mine produced coal that was mostly used for the construction of the Alaska Highway.
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