Multi-metal mining giant Xstrata has agreed to acquire the Sukunka hard coking coal deposit from Talisman Energy for 500m dollars cash.
Sukunka, located in the Peace River Coalfield of northern British Columbia, is close to the First Coal Corporation and Lossan tenements bought by Xstrata Coal last year.
It is estimated to contain 236m tonnes of coal in the measured and indicated categories.
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"Based on our due diligence and technical analysis, Sukunka has the potential to be a high quality metallurgical coal mine," said Xstrata Coal's Chief Executive Peter Freyberg.
"Once developed, Sukunka would meaningfully increase our exposure to hard coking coal, while unlocking synergies with our neighbouring assets in the Peace River coalfield and providing additional regional scale," he added.
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