Updated January 6, 2012

Compliance Energy and partners are proposing a new coal mine on Vancouver Island. The Raven Underground Coal Project would be located in the Tsable River watershed between Parksville and Courtenay on Vancouver Island.

The mine is projected to produce approximately 30.1 million tonnes (mt) over the ~16 year expected life of the mine. ~13.2 mt will be shipped to markets, and 16.9 mt will remain at the mine site as wastes.

On an annual basis, of the 1.9 million tonnes of raw coal per year, ~0.8 mt will be shipped, and 1.1 mt will remain at the mine site as waste. (See May 2011 Updated Project Description for more info.)

The preferred option for shipping the coal is by truck to Port Alberni. Rail to Port Alberni has some support in Port Alberni, but is not supported by the proponent, and other port options such as Duke Point and Middle Point in Campbell River, appear to have been eliminated.

The project triggers both a provincial and federal environmental review.

An updated project description was filed with the BC Environmental Assessment Office (EAO) in May 2011, and the project is now in Pre-Application status with the EAO. A draft Application Information Requirements (AIR) was posted in 2011 for public comment. In early 2012, a final AIR will be issued by the EAO, and the proponent will disappear for a while, preparing its formal application and environmental impact statement.

When the application is submitted, the project review will move into Application status. This is expected in 2012, but could be months away, or years - projects are extremely variable in this respect. Once the application has been submitted and accepted by the EAO, the environmental assessment must complete within 180 days. One public comment period of 40 days will take place during this time, and will include open houses.

There is no indication that the company will require any zoning or permits from the Comox Regional District. Many authorizations are required from the province - including a mine permit and a lease for surface lands from the Integrated Lands Management Bureau (ILMB) - and from federal agencies (section 7.2 of the pre-application)

Compliance is the majority partner in the Raven Project. Through its wholly owned subsidiary, Compliance Coal Corporation, Compliance holds 60% of the Comox Joint Venture with two partners, Itochu Corporation and LG International, both Asian trading companies each holding 20%.