Analyst Site Visit

 

TIDMWTN 
 
RNS Number : 8649T 
Western Coal Corporation 
05 October 2010 
 

 
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|                                                 |     1000 - 885 Dunsmuir | 
|                                                 |                  Street | 
|                                                 |     Vancouver, B.C. V6C | 
|                                                 |                     1N5 | 
|                                                 |                   Phone | 
|                                                 |            604-608-2692 | 
|                                                 |   [e-mail]  | 
|                                                 |    www.westerncoal.com  | 
|                                                 |                         | 
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News ReleaseWTN 10-24 
 
          Western Coal Analyst Meetings Focus on Efficiency and Growth 
Vancouver, BC, October 5, 2010 - Western Coal Corp.  (TSX: WTN, WTN.WT and AIM: 
WTN) ("Company" or "Western") today announced that it is currently hosting two 
days of analyst meetings and tours of its three British Columbia, Canada coal 
mines with a focus on recent and upcoming improvements to efficiency and 
production capacity. 
Keith Calder, President and Chief Executive Officer of Western Coal Corp. 
states, "Western's investments in larger and more efficient mining equipment is 
delivering benefits in terms of increased productivity and a lower cost 
structure.  Our objectives are to increase shareholder value and to ensure that 
customers consider Western a base-load supplier throughout the business cycle. 
As part of this strategy, we are phasing in new Company-owned equipment and 
phasing out the use of contractor fleets." 
Capesize carriers load at Ridley Terminals 
During the visit, management informed analysts that the first two Capesize bulk 
carrier ships, fully loaded with the company's coal, departed from Ridley 
Terminals in Prince Rupert BC in the months of August and September 2010.  The 
loading of these vessels is representative of Western's improved capability of 
delivering large volumes to Ridley Terminals. 
Capesize ships, with a capacity of 170,000 tonnes or more, currently provide 
cost savings for Western's customers of approximately US$5 to US$10 per tonne 
for coal delivered to Asia, compared to 75,000-tonne Panamax size vessels that 
usually load at Ridley Terminals. The next Capesize ship scheduled to load the 
Company's coal is expected to arrive at Ridley Terminals in fiscal Q3-2011. 
Capacity and efficiency programs 
Other highlights from the BC mine tour include the following investments in 
capacity and efficiency: 
·     At the Wolverine mine, during the first half of the current fiscal year, 
Western completed a program to increase truck and shovel capacity to 2.0 million 
tonnes per year, up 43% from 1.4 million tonnes per year before the program 
commenced. As part of the program, Western brought into service a new shovel, a 
new loader, and six Company-owned mining trucks with a capacity of approximately 
220 tonnes each, replacing ten trucks with a capacity of 135 tonnes each. 
Western ended the use of contractor equipment at Wolverine in 2009. 
 
·     At the Brule mine, during the second half of the current fiscal year, 
Western is scheduled to complete a program to increase truck and shovel capacity 
to 2.0 million tonnes per year, up 67% from 1.2 million tonnes per year before 
the program commenced. As part of the program, Western is bringing into service 
six Company-owned mining trucks with a capacity of 220 tonnes each, along with a 
new Company-owned loader and two Company-owned shovels to supplement an existing 
contractor fleet. 
 
·     At the newly commissioned Willow Creek mine, Western is scheduled to 
complete a program to increase fleet equipment capacity to achieve its target 
production of 1.7 million tonnes per year in fiscal 2012. This will include 
seven Company-owned trucks, each with a capacity of 135 tonnes, to be redeployed 
from Wolverine. 
 
 
·     Between the Brule mine and Western's coal processing facilities at the 
Willow Creek mine, the Company is building a 60-kilometer connector road that 
will reduce Brule's coal hauling cost by approximately 25%. On completion of the 
connector road in December 2010, Western will no longer be required to use a 
100-kilometer route from Brule to Willow Creek, reducing the travel distance by 
40%. The connector road will also improve safety by avoiding public highway 
traffic. Western will deploy 16 purpose built off-highway haul trucks, each with 
a capacity of 110 tonnes, to move coal from Brule to Willow Creek. The new 
trucks will significantly improve productivity when compared with the current 
fleet of 40 tonne haul trucks. 
 
·     Although not part of the tour, management will also update analysts on a 
fleet expansion program to increase equipment capacity at Western's Maple 
underground mine in West Virginia by 33%. The Company also intends to redeploy 
from British Columbia to West Virginia three Company-owned trucks, each which 
with a capacity of 135 tonnes. 
All presentations made at the analyst meetings will be available at 
http://www.westerncoal.com/investors/financial_information/. 
About Western Coal 
Western Coal is a producer of high quality metallurgical coal from three mines 
in northeast British Columbia (Canada), high quality metallurgical coal and 
compliant thermal coal from four mines located in West Virginia (USA), and high 
quality anthracite and metallurgical coal in South Wales (UK). Other interests 
owned include a 24% interest in Mandalay Resources Corporation (MND: TSX), 40% 
interest in Xtract Energy (XTR: AIM), and a 20% interest in NEMI Northern Energy 
& Mining (NNE.A: TSX). The Company is headquartered in Vancouver, BC, Canada, 
and trades on the AIM and TSX stock exchanges under the symbol "WTN". More 
information can be found at www.westerncoal.com 
 
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 the Company's 
construction schedule or 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. 
 
For further information: 
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| Western Coal Corp.        | Buchanan               |                      | 
| David Jan                 | Communications         |                      | 
| Head of Investor          | Bobby Morse /          |                      | 
| Relations                 | Katharine Sutton       |                      | 
| [phone]           | [phone]    |                      | 
| [e-mail] | [e-mail] |                      | 
|                           |                        |                      | 
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This information is provided by RNS 
            The company news service from the London Stock Exchange 
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