RE: ‘Raven re-submits application for coal mine near Buckley Bay,’ The NEWS, Feb. 3.
It’s interesting to note in the article that the Compliance Coal website and Compliance COO Stephen Ellis are continuing to extol the virtues of the Raven Coal Mine and its employment possibilities.
Even if you take these Compliance Coal job projections at face value, which I don’t, there are several big hurdles to clear before these job predictions could become a reality.
Compliance Coal has to navigate their project through the current environmental assessment process and get the green light from both the federal and provincial governments. Given the considerable headwind of public opposition, an approval certainly isn’t a slam dunk.
Since the last Raven Project financial analysis from 2011, world coal prices have plummeted significantly. In some cases these prices reflect nearly a 50 per cent decrease in what was estimated in 2011.
One would assume these dramatically decreasing coal prices would significantly affect the Raven Project bottom line as well.
Assuming Compliance Coal got the green light from the feds and province, what kind of business case is there to proceed further given the current coal price and it’s price going forward?
As the Raven Coal Project is debated it’s important to closely examine the financial viability of the project and to take the employment projections with a grain of salt.
John SnyderFanny Bay