Rising Costs Challenge Jameson’s Crown Mountain Project, But NPV Surges

Context and Background

Jameson Resources Limited has provided a comprehensive update on the Crown Mountain Hard Coking Coal Project in British Columbia, Canada. This 2025 feasibility update revisits the economic assumptions from the 2020 Bankable Feasibility Study (BFS) and the 2021 Yield Optimisation Study (YOS), incorporating recent inflationary pressures and revised coal price forecasts. The project, majority-owned by Jameson through its Canadian subsidiary NWP Coal Canada Ltd, is positioned in the prolific Elk Valley coalfields, adjacent to established metallurgical coal mines.

Cost Inflation and Project Economics

The update reveals a 28% increase in pre-production capital expenditure, rising from US$309 million to US$394 million, driven by higher equipment prices, labour, fuel, and infrastructure costs. Operating costs have also increased by 15%, now estimated at US$102.79 per tonne FOB Vancouver. Notably, additional capital has been allocated for a revised rail loadout facility to address cultural heritage concerns and for a contingency water treatment plant to meet environmental standards.

Reserve Confirmation and Market Outlook

Despite these cost escalations, the project’s Proven and Probable Reserves, as defined in the 2020 BFS, remain intact and valid following a review by the Competent Person. This is underpinned by a robust increase in coal price forecasts, with benchmark prices for premium hard coking coal rising to US$225 per tonne. The combined effect is a striking 200% increase in the project’s pre-tax NPV10, now estimated at US$942 million, reflecting strong market fundamentals amid constrained global steelmaking coal supply.

Strategic Position and Next Steps

Jameson’s Chair, Nicole Hollows, highlighted the project’s advanced status relative to other greenfield developments in Canada and globally, emphasizing its cost competitiveness and strategic location near existing rail and port infrastructure. The company is actively progressing environmental assessments and regulatory approvals, engaging closely with Indigenous Nations and local stakeholders. Future work will focus on further optimisation studies and securing financing, with potential funding sources including equity, debt, contractors, and strategic partner Bathurst Resources Limited.

Infrastructure and Environmental Considerations

The project benefits from proximity to Canadian Pacific’s rail network and multiple deep-water ports, with Westshore Terminal near Vancouver identified as the preferred export facility. Environmental permitting is advancing, with the company addressing concerns such as selenium mitigation and water treatment. Engagement with First Nations is ongoing, aiming to establish long-term Impact Benefit Agreements to support sustainable development.