Wellston Coal Project
The Wellston Coal Project, an EDE phase I priority acquisition, is a scalable and potentially lucrative long term opportunity for blending Fines with high grade Metallurgical coal. The Wellston property consists of Metallurgical mines and is located in close proximity to the Alpheus site in Gary, West Virginia.
The Wellston Coal reserves consists of 2 million tons of permitted mineable coal and a deep mine permit controls access to adjoining property, which contains an additional 2 million tons of mineable coal along with harvestable timber for HAFP’s production.
With significant capital improvements already completed, the wash plant at Alpheus will enable cheap transport and washing. The site has already been prepared and permitted for installation of a previously identified used wash plant. Coal reclamation products (fines and high grade coarse) are available at Alpheus for blending. The high grade coarse will be washed with the coal from Wellston to produce a high value Met product at low prices and Wellston’s coal has been extensively tested and drilled, the perfect match for blending with Fines and Coarse Coal from Alpheus.
Onyx Coal Project
Planned for the second phase in the Company’s acquisition strategy, the Onyx Coal Mine located near Prestonsburg, KY, has over 22 million permitted tons of coal. Coal spécifications are 12,300-12,800 BTUs, less than 1% sulfur, 8-10% ash, and approximately 7% moisture. EDE is negotiating a non-binding Letter of Intent to purchase 100% of the issued ownership of the Dotson Onyx Mine. (Onyx Coal Project)
Upon final agreement to purchase the Onyx Coal Project and subsequent financing, EDE’s plan is to resume mining on the Sand Branch segment of the property with approximately 10 months of surface and highwall mining work remaining.
Along with being the primary coal pellet fuel source, EDE will have the capability to sell over 11,000 clean tons per month, supplying traditional coal end burners with a high quality fuel. This diversification also provides another revenue stream for the Company.
The Onyx coal mine is in an ideal location with a CSX rail load out and a wash plant that will produce 11,000 clean tons per month and ramp up to 17,500 tons per month in first year on just one segment of the mine. The company can invest and expand the mining operations to produce 50,000 tons per month to satisfy all our customers solid fuel needs.