Xstrata to expand Canadian operation

By Darshini Shah | Fri, 07/10/2011 - 09:05

Xstrata (XTA) is to expand its coal mining, announcing on Friday that it had agreed to acquire 100% of the Lossan metallurgical coal deposit from Cline Mining Corporation for CAN$40 million (£24.8 million).

"Lossan is located in the Peace River coalfield of north-eastern British Columbia, Canada, and is surrounded by a group of licences recently acquired by Xstrata Coal through the acquisition of First Coal Corporation in early August 2011," said the company.

"Lossan has an NI 43-101 compliant resource of 240 million tonnes, with 186 million tonnes being in the measured and indicated categories," the company added.

Indicated resources are resources that have been sampled and their physical characteristics (such as grade, densities, etc) correctly gauged. Measured resources are indicated resources that have undergone further testing to determine their characteristics.

The deposit covers an area of approximately 3,800 hectares, which lifts Xstrata Coal's total tenure in the Peace River coalfield to almost 100,000 hectares.

Shares in Xstrata were up 1.3% in early trading.

Are you looking for more on the mining giant? Watch what the iBall TV team have to say about Xstrata.

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