On October 7, Swiss mining group Xstrata plc announced that its coal operations unit Xstrata Coal has agreed to acquire 100 percent of the Lossan metallurgical coal deposit (Lossan) from Toronto, Ontario, Canada-based Cline Mining Corporation for C$40 million ($38.5 million), subject to customary conditions. The acquisition is expected to be completed on October 12, 2011.
Lossan is located in the Peace River Coalfield of north eastern British Columbia, Canada, and is surrounded by a group of licences recently acquired by Xstrata Coal through the acquisition of First Coal Corporation in early August this year.
Lossan has a compliant resource of 240 million mt, with 186 million mt being measured and indicated. Lossan covers an area of approximately 3,800 hectares, which lifts Xstrata Coal's total tenure in the Peace River Coalfield to almost 100,000 hectares.