Certainly looks like it.
A few months ago there were some articles online about a company looking to get the rights to and then mine coal near Courtney here on Vancouver Island. It caused quite a stir, particularly in the rail community as the company directly mentioned the close proximity to the E&N and the deep sea port at Port Alberni in its literature.
Well, even though the economy has gone in the tank, it seems as though things are still proceeding.
In February and March, Compliance Energy Corporation went through and signed a partnership in the project with I-Comox Coal Inc a subsidiary of ITOCHU Corporation and LG International Investments (Canada) Ltd. a subsidiary of LG International Corp. They also signed a deal with West Fraser Mills, the original holders of the land to purchase around 29,000 hectares near Buckley Bay and Courtney.
Below is an overview map of the area… with the “Bear” area just south of Cumberland and Comox Lake and the “Raven” area nearer Buckley Bay.
The Main find that includes Metallurgic (iron/steel) grade coal is in the bottom middle of the image, near where it says “Comox Strathcona A”. This terrain view is easiest to see where the claim is as it relates to surrounding communities. The entire flat area between the water and where the mountain hills start from Fanny Bay in the South to Comox Lake in the North is the general area of the plot.
Here is a slide from a recent presentation given by CEC.
You can see the various interests CEC has, with Raven being the one considered most profitable.
Their latest filings show that they are still actively pursuing the Raven project.
CEC has provided $7 Million to its Asian backers to “fund all of the activities necessary to reach a production decision on the Raven Coal Project.”
Notice that they said “production decision”, which is quite different from production itself. That said, they seem very optimistic on both the quality and marketability of the project. Other documents say they are hoping to have their first shipments in 2011 or 2012… but this little paragraph in their latest filing indicates there are financial pressures coming to bear that are not unrelated to the wider economy.
The Company will continue to require funds and as a result, will have to continue to rely on equity and debt financing. There can be no assurance that financing, whether debt or equity, will always be available to the Company in the amount required at any particular time. Management is of the opinion that sufficient working capital will be obtained from external financing sources to meet the Company’s liabilities as they come due.
So we’ll see what happens here. The partners in the project, ITOCHU and LG, are multi-billion dollar players in the asian coal and steel industry, so their financial well being is not in doubt. What is in doubt with whether this small company, lead by CEO John Tapics (out of Alberta electricity/coal sector, click for more on the Board), can make this happen, and more importantly, sell it to Island residents.