London, Ontario-based resource company Fortune Minerals Limited reported Tuesday that it has closed the joint venture with POSCO Canada Ltd. (POSCAN), essentially creating POSCO Klappan Coal Ltd. to advance the Mount Klappan anthracite metallurgical coal project in northwest British Columbia to production.
Under the agreement, POSCAN acquired a 20 percent stake in the Mount Klappan project with an upfront cash payment of $30 million. Based on current capital cost estimates, POSCAN is anticipated to make total payments and cash contributions of $181 million to develop the Mount Klappan mine and related railway infrastructure. Fortune Minerals owns the other 80 percent stake in the venture.