Forbes & Manhattan Coal Corp.

Forbes & Manhattan Coal Corp.

October 20, 2010 08:00 ET

Forbes & Manhattan Coal Corp. Announces Production Update

TORONTO, ONTARIO--(Marketwire - Oct. 20, 2010) - Forbes & Manhattan Coal Corp. (TSX:FMC) ("Forbes Coal" or the "Company") is pleased to announce that the properties have produced an aggregate total of 515,558 Run-of-Mine ("ROM") tonnes for the seven months period up to the end of September 2010. The average production rate for the last three months was 85,250 tonnes of ROM coal per month, well in-line with the company's targeted ramp-up schedule. The production from the Magdalena Bituminous mine was an average of 63,994 ROM for the 3 months of July to September. Furthermore, the Aviemore Anthracite mine was reopened in July and produced at 22,775 tonnes of ROM coal for the month of September, exceeding the Company's initial projections. The calcine plant, which is used to upgrade the current Anthracite to metallurgical coal specifications, is currently running at full capacity. The Company intends to further increase coal production rates at both the Magdalena and Aviemore operations over a three year period and anticipates delivery of an additional Continuous Miner (the "CM") for the Magdalena underground mine in November 2010. The new CM is designed to add an additional 40,000 tonnes of ROM capacity per month and expects to be fully operational by January 2011.

President and Chief Executive Officer, Stephan Theron, commented, "The recent Slater Coal (Pty) Ltd. acquisition is progressing according to plan and schedule. We are pleased to announce that production for the year is well on target and we are moving forward to meet our set growth targets. The Forbes Coal management team is now fully integrated with the Slater Coal operating team under the leadership of our Chief Operating Officer, Mr. Johan Louw."

Johan Odendall, B.Sc.(Geol.), B.Sc.(Hons)(Min. Econ.), M.Sc. (Min. Eng.), a director of Minxcon and an independent Qualified Person, as defined in National Instrument 43-101 has reviewed and approved the scientific and technical information contained in this release.

About Forbes Coal 

The Corporation holds a 53.5% interest in Slater Coal (Pty) Ltd., a South African company ("Slater Coal") which has a 70% interest in Zinoju Coal (Pty) Ltd. ("Zinoju"). Zinoju holds a 100% interest in certain coal mines in South Africa (the "Slater Coal Properties"). The Slater Coal Properties comprise the operating Magdelena bituminous mine (the "Magdelena Property") and the Aviemore anthracite mine (the "Aviemore Property") and have a substantial resource base of bituminous and anthracite coal. The Slater Coal Properties are located in the Klipriver coalfield, near Dundee, in the KwaZulu Natal Province of South Africa and can be accessed via the N3, N11 Ladysmith and R102 Dundee tarred national highways that run between Johannesburg and Durban, South Africa. The other 46.5% of Slater Coal is beneficially owned by members of the Slater family. 

Cautionary Note Regarding Forward-Looking Information: This press release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements with respect to the future financial or operating performance of the Corporation and its projects, statements regarding the prospects for the business of the Corporation, statements regarding future production rates, the anticipated timing and delivery of the CM, potential results of the CM, the costs of and capital for projects, expenditures, timing of future acquisitions of additional properties and applicable licences, requirements for additional capital, government regulation of the mineral exploration industry, environmental risks, acquisition of mining licences, title disputes or claims, limitations of insurance coverage and the timing and possible outcome of pending litigation and regulatory matters. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". 
Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Corporation to be materially different from those expressed or implied by such forward-looking information, including but not limited to: general business, economic, competitive, foreign operations, political and social uncertainties; a history of operating losses; delay or failure to receive board or regulatory approvals; timing and availability of external financing on acceptable terms; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; future prices of mineral products; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes and other risks of the mining industry; and, delays in obtaining governmental approvals or required financing or in the completion of activities. Although the Corporation has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Corporation does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

Contact Information

  • Forbes & Manhattan Coal Corp.
    Stephan Theron
    President and Chief Executive Officer
    (416) 861-5912