Western Canadian Coal Temporarily Suspends Development at the Willow Creek Mineadmin
Western Canadian Coal Corp. announces that despite a successful start-up of mining operations at the Willow Creek Mine, the current volatile and rapid global economic uncertainty is impacting the demand for metallurgical coal. As a result, the Company will temporarily suspend mining operations and future capital expenditures at the Willow Creek Mine at the end of November 2008. Future decisions on restarting mining operations and expansion plans at the mine and plant will resume once clarity on next year’s coal prices and commitments become more visible.
John Hogg, President and CEO of Western Canadian Coal Corp. comments, “Other than capital spending required to sustain operations at our Wolverine and Brule mines, we have begun a plan to suspend all capital expenditures. We are also reviewing all non-discretionary spending to contain our mining cash costs. We believe these difficult actions are required to help the Company weather the short-term market uncertainties to protect the Company’s growth for the long-term.”
Western Canadian Coal Corp. produces high quality metallurgical coal from mines located in the northeast of British Columbia. The coal is sold to many of the top steelmakers in the world. The Company also has interests in various coal properties in northern and southern British Columbia and a 50% interest 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. For more information, please visit www.westerncanadiancoal.com