Australia's Riversdale Resources Pty Ltd (Riversdale) has placed the highest bid for exploration rights over the Chickaloon coal deposit in Alaska's Mat-Su Valley, beating out Usibelli Coal Mine Inc, Alaska Mining and Energy Co and Arctic Coal LLC, according to the Alaska Mental Health Trust Authority which owns the subsurface rights to the land.
Riversdale should receive an exploration permit from Alaska's Department of Natural Resources in order to evaluate the geology and determine if any of the coal resources can be mined. Chickaloon is believed to contain high-quality, low-sulfur bituminous coal prized by steelmakers.
According to the statement, Riversdale's bonus bid totaling $3 million, rental payments and royalties from any future mining on the land will fund programs and services for trust beneficiaries, who include people with mental illness, developmental disabilities, chronic alcoholism, other substance-related disorders and such.