Tent Mountain Mine

The Tent Mountain Mine is located in the Crowsnest Pass, and straddles both sides of the southwest Alberta and southeast British Columbia border.

The mine has current mine permits in both Alberta and British Columbia covering valuable steelmaking coal reserves, and Montem is working with regulators to obtain mining licences which will enable the re-start of open-cut mining.

Tent Mountain Mine Project Location

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Mine Re-Start Program

Montem purchased the mine in 2016 and has since conducted several drilling campaigns as well as two years of environmental monitoring at Tent Mountain. In early-2020, Montem completed a Definitive Feasibility Study, which showed strong economic results, including a mine life of more than 14 years.

Tent Mountain Mine – Feasibility Study Results
Coal Type Tier 2 Hard coking coal
Resource (JORC, 2020) 60 Mt
Reserve – ROM 22 Mt
Reserve – Product 13 Mt
Washery Yield 60 %
Mining method Open cut
First coal 2023
Production 1.1 Mtpa
Life 14 years
Strip Ratio 8.8:1 (ROM basis)
Capital required US$168m
Operating cost US$ 88/t FOB
Project NPV (post tax) 1 C$129 million
IRR (post tax) 1 17.3%

1. Based on US$150 LT HCC Reference Price & 13% discount for Tent Mtn Tier 2 Hard Coking Coal
Exchange Rates used:
CAD:USD of 0.75
AUD:USD of 0.72

Seaborne Export HCC Cost Curve 2020 1

Export Curve
1.Source: Wood Mackenzie Ltd, February 2020 dataset; Tent Mountain FOB costs from 2020 Definitive Feasibility Study

Capital Intensity – Hard Coking Coal Projects (USD / tonne capacity)1

Capital Intensity
1.Source: Wood Mackenzie Ltd, February 2020 dataset; Company disclosures; Montem management analysis

Montem is working on amending environmental permits and obtaining mine operating licences for Tent Mountain. Montem has developed an operating plan for the re–start of the Tent Mountain Mine, and is actively working with regulators, Indigenous Peoples and the local community to bring the mine back into production.

Once approved, the next stage will be to construct new infrastructure, including haul roads, bring power 8km to site, and construct a rail loadout adjacent to the mine (not in Coleman). Operations of the Tent Mountain Mine will not be visible from Coleman, reducing the likelihood for any visual impact. Where possible, infrastructure and operations will be shielded and away from the community.

The process to re-start mining will continue through 2021 and 2022, bringing economic stimulus to local communities by providing opportunities for local businesses to be involved. Approximately 200 temporary jobs will be created during the construction phase, with an additional approximately 190 full-time jobs created, across a range of skill sets, during mining operations, over an expected mine life of 14 years.

 

 

Location

The project is situated in both Alberta and BC with the closest municipality, Coleman, Alberta, located 16km to the east. The mine covers an area of approximately 1,700 ha, with the rail loadout located 8km north of the proposed mine operations.

The main rail line is operated by Canadian Pacific Railway and provides access to Westshore Terminals in Vancouver. Montem has a contract to export up to 1.2Mtpa through Westshore Terminals from 2023.

The Tent Mountain Mine from above

Product Coal Quality

 

TM
%ar		 ASH
%ad		 VM
%ad		 TS
%ad		 Phos in coal
%ad		 FSI Vitrinite
RoMax		 CSR
9.0 9.8 25.6 0.50 0.089 5.5 1.07 51 – 55 (small oven)
60 – 65 (calculated)

The Tent Mountain mine is expected to produce a single product steelmaking coal similar to other Canadian high mid-vol coking coals. This product can be defined as a Semi-Hard to Hard Coking Coal, or a 2nd Tier Hard Coking Coal. The Tent Mountain product coal’s primary value in the market can be seen as a blending coal for steelmakers, facilitating the replacement of significant proportions of the more expensive prime hard coking coals that make up coke oven blends.

Geology

 
The Mist Mountain Formation of the Late Jurassic–Early Cretaceous Kootenay Group is the main coal bearing formation in the region. Coals of the Mist Mountain Formation outcrop at Tent Mountain in a general north-south direction for a strike length of approximately 5km.

There are five major economic coal horizons in the Mist Mountain Formation at Tent Mountain, with a cumulative true coal thickness of approximately 30m. The principal coal seams, in descending order are the number 7, 6, 5, 4 and 2 seams.

An image of geotechnical core logging at Tent Mountain.
Geotechnical core logging at Tent Mountain

Tent Mountain Mine JORC Coal Resources

Measured (Mt) Indicated (Mt) Inferred (Mt) Total (Mt)
Tent Mountain Mine 3.7 48.1 8.4 60.1

Mineral Resources have been estimated according to JORC 2012 standards

Best Practice Environmental Management

Our priority is to minimize potential impacts on the local environment. The baseline studies we have undertaking at the Tent Mountain Mine have helped us plan how the site will be mined and how to manage the project during operation. We are committed to achieving best practice environmental management and protection in all aspects of our operations. Learn more about our approach. 

Approvals 

 
The Tent Mountain Mine has two current mine permits one granted by the Alberta Energy Regulator (No. C 85-16G) and the other granted by the BC Ministry of Energy, Mines & Petroleum Resources (No. C-108). Tent Mountain also has a current Environmental Protection and Enhancement Act (EPEA) approval (No. 47679-02-00).

Montem Resources is in the process of applying for an amendment to the EPEA, along with several other licences which are required to undertake mining.

Type

Mine Permit

Environment Protection and Enhancement Act (EPEA)

Mineral Surface Lease (MSL)

Water Act Licence

Coal Conservation Act Licence (CCA)

“Pit Licence”

Description

Authority to carry out operations within a defined area

Environmental and Stakeholder Approval

Authority to occupy and utilize Alberta Crown lands for mining purposes

Access to, and use of, water resources

Security held for site rehabilitation activities

Why do we need it?

Permits mining as a land use within a defined area subject to other required permits

Provides environmental approval to undertake prescribed activities on-site, within Mine Permit boundary

Allows use of public lands (mining, coal haulage across Crown Land)

Allows use of water

Prescribes all authorised mining activities for defined area within Mine Permit boundary

Status

Granted

(AB C 85-16G)

(BC C-108)

Granted

(No. 47679-02-00)

Submitted (Apr 2019)

Submitting (H2 2020)

Submitting (H2 2020)

Regulating Authority

AER

(Alberta Energy Regulator – Provincial level)

Application comment

Regulator (AER) has agreed to review the MSL in advance of the application to amend the EPEA and apply for the Water Act Licence before submitting the CCA Licence application.

This process will fast-track the submissions for Tent Mtn, enabling us to attain approvals in a logical sequence, and begin mining sooner.

Timeline