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Chinese investors plan underground BC coal mines

A consortium of two Chinese coal companies and a steel maker are working with a Vancouver-based Chinese company to develop hundreds of millions of dollars worth of unique underground mines in northern B.C.

A consortium of two Chinese coal companies and a steel maker are working with a Vancouver-based Chinese company to develop hundreds of millions of dollars worth of unique underground mines in northern B.C. that could provide thousands of jobs, according to a report in the Prince George Citizen.

"It's a very big deal," said Jobs, Tourism and Innovation Minister Pat Bell, who spoke from China this week as he met with the companies to discuss moving the projects' environmental assessment and permitting onto a dual track. The province introduced the process to provide mining companies the opportunity to have the assessment and permitting take place simultaneously, although few companies take advantage of it, said Bell, the MLA for Prince-George MacKenzie.

The Chinese companies – which already have their financing in place – are interested in using the dual track because they want to get the projects up and running quickly, Bell said. Bell is in China largely to promote the use of wood in apartment buildings.

The Chinese companies include coal producers the Kailuan Group and Huiyong Group, and steel company the Shougang Group. The trio are working with Canadian Dehau International Mines Group Inc., based in Vancouver, headed by president Liu Naishun. Canadian Dehau has leased several mining properties in northeastern B.C., including the Gething, Murray Ridge and Bullmoose Properties.

The companies want to enter the six-month environmental process late this year or early in 2012, with construction taking place in 2012 or 2013, if environmental approval is given. The three underground mines would add eight million tonnes of coal production, about twice the current production in the area. The companies bring specific expertise to underground coal mining. The coal mining projects in northeastern B.C., in the Tumbler Ridge area, are all open pit mines. The only underground coal mine in B.C. is on Vancouver Island.