Strategic Metals Evaluates Division Mountain Coal Project with New Studies

Strategic Metals Ltd has released two reports for its Division Mountain Coal Project in Yukon. The reports assess the potential for coal-fired power plants to address electric shortages in the region. This could reduce reliance on expensive diesel and LNG, which are currently imported.

The scoping study and Preliminary Economic Assessment (PEA) by Allnorth Consultants Limited explore constructing one 100 MW or two 50 MW power plants. The estimated rates for coal-generated electricity, ranging between $0.20/kWh and $0.22/kWh, are cheaper than current LNG and diesel options.

The PEA outlines a coal mine designed to supply 500,000 tonnes of clean coal annually, with a projected capital cost of $978.6 million. However, the feasibility of carbon capture and sequestration remains, potentially lowering emissions.

Strategic Metals sees coal as a medium-term solution, offering cost advantages and local energy security over imported hydrocarbons.