The Company’s strategy is to create a profitable coking coal mining company through development of the Lubelska 1, 2 and 3 License areas (the ‘Lubel Coal Project’). These licences are part of the Lvov-Volyn coal basin in western Ukraine. Commercial production is currently expected to begin in 2019. 

   The new mine, once constructed, will benefit from its close proximity to existing infrastructure, the availability of a local, skilled underground coal mining workforce and a favourable location for coal exports.

   The development plan for the Lubel Coal Project currently includes the construction of a modern, underground mine and coal processing plant capable of mining and processing up to 8.0 million tonnes of ROM coal into 6.0 million tonnes of high-quality, washed coking coal annually. With mineable resources estimated at 305.6 mt in the Lubelska 1,2,3 License Area, the Company believes that the Lubel Coal Project will allow continual ROM production at an average rate of 7.0 mtpa for 42 years. 

   In October 2014 the Company completed and updated BFS (done by CCMC, world-known coal mine construction company, and Hefei Project and Research Mining Institute, China)  which includes detailed engineering design, financial model of the project, capacities of coal output confirmed by prospective general constructor (CCMC). 

  Environment and Labor Safety

   The Company pays greatest attention to the key environmental and labor protection issues: USD 27m (included in coal mine construction budget) will be spent to implement modern environmental and labor protection measures providing effective limitation or complete elimination of effects of technogenic pressing

Positive  statements and  conclusions were received from:

• Scientific Institute of Environmental Problems
• Lugansk Expertise and Technology Center (No.44.05.3443.C08)
• State Sanitary and Epidemiological Department of the Ministry of Health Protection of Ukraine (No.05.03.03-07/53177)

• A large long-life high quality coking coal project in Ukraine
• Potential for increased coal resources and platform for expansion
• Strategic location
• Competitive production costs and robust economics  
• Existing infrastructure
• Experienced management and project team