Ambre Energy evaluates US coal regions and deposits to identify acquisition opportunities. Our target is low-ash, low-moisture coal deposits that are close to rail infrastructure so they can supply our thermal coal export business.
Coal demand is expected to increase steadily in coming decades, and the Powder River Basin, our major target area, could potentially be a major supply source. About 50 per cent of total US coal production comes from this area, and the coal from this region burns cleaner than most coal in Asia-Pacific markets.
After five years of evaluating prospects, in November 2011, Ambre Energy acquired 50 per cent of the Decker mine in Montana and the Black Butte mine in Wyoming. The company also achieved total ownership of two former Wyoming mines with significant remaining coal resources, Big Horn and Rosebud, with a view to re-opening Big Horn.
We are working with our joint venture partners to expand production at the Decker and Black Butte mines to supply existing domestic customers and new international customers through our international coal marketing and trading business.
JORC* resources summary
JORC-compliant coal reserves (metric tons)
| Project | Proved (Mt) | Probable (Mt) | Total reserves (Mt) |
| Decker(1) | 121.0 | 16.9 | 138.2 |
| Black Butte(2) | 63.0 | 32.9 | 95.9 |
| Total | 184.3 | 49.8 | 234.1 |
JORC-compliant coal resources (metric tons)
| Project | Measured (Mt) | Indicated (Mt) | Inferred (Mt) | Total resources (Mt) |
| Decker(1) | 212.9 | 243.1 | 412.2 | 868.2 |
| Black Butte(2) | 68.3 | 37.8 | 18.5 | 124.6 |
| Total | 281.2 | 280.9 | 430.7 | 992.8 |
(1) Compiled by Competent Persons Gwendolyn Stefani and David Lennard from Palaris Mining, April 2012.
(2) Compiled by Competent Persons Brad Willis and David Lennard from Palaris Mining, April 2012.
(2) Compiled by Competent Persons Brad Willis and David Lennard from Palaris Mining, April 2012.
*Australasian Joint Ore Reserves Committee (JORC) - The JORC Code provides minimum standards for public reporting to ensure that investors and their advisers have all the information they would reasonably require for forming a reliable opinion on the results and estimates being reported.
