VANCOUVER, April 1 /PRNewswire-FirstCall/ -- Western Canadian Coal Corp (TSX: WTN and WTN.DB and AIM: WTN) (the "Company") today announces an operations update for the fiscal year ending March 31, 2009.
Coal Production --------------- The Company expects to produce approximately 3.7 million tonnes of metallurgical coal. This includes: - Wolverine Mine producing approximately 1.8 million tonnes of hard coking coal and 0.2 million tonnes of mid-volatile PCI coal. - Brule Mine producing approximately 1.3 million tonnes of low-volatile PCI ("ULV-PCI") coal. - Willow Creek Mine producing approximately 0.4 million tonnes of ULV- PCI coal commencing September 2008. Cash Costs ---------- - The Company expects average cash costs, which includes transportation and costs at the mines, to be in the range of C$90 to C$95 per tonne. Sale Prices Realized -------------------- - The Company anticipates that coal contracts for the upcoming coal year will be completed by the end of the first quarter fiscal 2009. These contract prices will be effective April 1, 2008. In the interim, the Company has entered into provisional pricing arrangements in excess of US$220 per tonne for hard coking coal. These interim prices will be effective April 1, 2008. Capital Expenditures --------------------
The Company expects to spend approximately $90 million in capital expenditures, which includes approximately $43 million in equipment costs. The largest portion of the capital expenditures will be spent on restarting the Willow Creek mine and on the plans to expand the Brule Mine to a 2.0 million tonne per year operation.
About Western Canadian Coal
Western Canadian Coal Corp. produces 3.7 million tonnes of high quality metallurgical coal from three mines located in the northeast of British Columbia. The Company also has interests in various coal properties in northern and southern British Columbia and a 50% interest in the Belcourt Saxon Limited Partnership, which was formed to explore and develop the Belcourt and Saxon group of properties in northern BC. Currently, these properties provide the Company with an estimated 15 years of coal reserves at current production levels.
Forward-Looking Information
This release may contain forward-looking statements that may involve risks and uncertainties. Such statements relate to the Company's expectations, intentions, plans and beliefs. As a result, actual future events or results could differ materially from those suggested by the forward-looking statements. Readers are referred to the documents filed by the Company on SEDAR. Such risk factors include, but are not limited to changes in commodity prices; strengths of various economies; the effects of competition and pricing pressures; the oversupply of, or lack of demand for, the Company's products; currency and interest rate fluctuations; various events which could disrupt the Company's construction schedule or operations; the Company's ability to obtain additional funding on favourable terms, if at all; and the Company's ability to anticipate and manage the foregoing factors and risks. Additionally, statements related to the quantity or magnitude of coal deposits are deemed to be forward-looking statements. The reliability of such information is affected by, among other things, uncertainties involving geology of coal deposits; uncertainties of estimates of their size or composition; uncertainties of projections related to costs of production; the possibilities in delays in mining activities; changes in plans with respect to exploration, development projects or capital expenditures; and various other risks including those related to health, safety and environmental matters.
CONTACT: David Jan, Manager, Investor Relations & Corporate Development, Phone: (604) 608-2692, Email:
