Western Canadian Coal Corp.
TSX : WTN
AIM : WTN

Western Canadian Coal Corp.

July 28, 2005 09:00 ET

Western Canadian Coal Receives Amendment to Dillon Mine Permit

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - July 28, 2005) - Western Canadian Coal Corp. (TSX:WTN)(AIM:WTN) ("WCCC" or the "Company") announces that it has received approval from the BC Ministry of Energy and Mines to increase its Dillon Mine production limit from 240,000 tonnes per calendar year to a continuous rate of 80,000 tonnes per month. As a result, the Company expects to produce and sell approximately 800,000 tonnes of ultra low-volatile PCI coal for its first full operational fiscal year ended March 31, 2006. The Company previously announced that it had settled pricing for its ultra low-volatile PCI for the year commencing April 1, 2005 at slightly more than US$100 per tonne for greater than 85% of the current fiscal year's expected sales. The increase in the mine production rate does not increase the mine disturbance footprint or the total waste mined but allows WCCC to mine out the small deposit at an accelerated rate over two years.

The Dillon Mine, located on the Company's Burnt River Property in Northeast British Columbia, produces an ultra low-volatile pulverized coal injection ("PCI") coal that requires no washing prior to shipment. Low-volatile PCI coal has become a major innovation in modern steelmaking technology, replacing up to 30% of the coke feed in the blast furnace. This provides a significant reduction in steelmaking raw material cost. With its high calorific value, low ash level and volatility of less than 14%, Burnt River ultra low-volatile PCI has become one of the world's premium PCI coals.

Gary Livingstone, President and CEO, stated, "We are pleased with the favourable and timely response from the BC government to our request to increase output at the Dillon Mine. This approval enables the Company to ensure an uninterrupted supply of product to its customers. This government's ongoing support has encouraged the Company to accelerate its expansion plans for the development of northeast coal."

Forward-Looking Information

This release may contain forward-looking statements that may involve risks and uncertainties. Such statements relate to the Company's expectations, intentions, plans and beliefs. As a result, actual future events or results could differ materially from those suggested by the forward-looking statements. Readers are referred to the documents filed by the Company on SEDAR. Such risk factors include, but are not limited to, changes in commodity prices; strengths of various economies; the effects of competition and pricing pressures; the oversupply of, or lack of demand for, the Company's products; currency and interest rate fluctuations; various events which could disrupt operations; the Company's ability to obtain additional funding on favourable terms, if at all; and the Company's ability to anticipate and manage the foregoing factors and risks. Additionally, statements related to the quantity or magnitude of coal deposits are deemed to be forward-looking statements. The reliability of such information is affected by, among other things, uncertainties involving geology of coal deposits; uncertainties of estimates of their size or composition; uncertainties of projections related to costs of production; the possibilities in delays in mining activities; changes in plans with respect to exploration, development projects or capital expenditures; and various other risks including those related to health, safety and environmental matters.

WESTERN CANADIAN COAL CORP.

Gary K. Livingstone, President and Chief Executive Officer


Contact Information

  • Western Canadian Coal Corp.
    Gary K. Livingstone
    President & CEO
    (604) 608-2692
    (604) 629-0075 (FAX)
    or
    Western Canadian Coal Corp.
    Fausto Taddei
    CFO & Corporate Secretary
    (604) 608-2692
    (604) 629-0075 (FAX)
    info@westerncoal.com
    www.westerncoal.com