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The Crow Tribe controls an estimated 10 billion tons of sub-bituminous coal resource in the largest coal basin in the world. The coal resource has been partially delineated by the drilling and evaluation of more than 1,200 core holes. Of the 3.7 billion ton resource within the Project’s proprietary area, an estimated inferred resource of 849 million tons are NI 43-101 compliant at this stage and the drilling program is designed to upgrade the balance of the resource. The NI 43-101 report was prepared by John T Boyd Company and filed on www.sedar.com.
The Project plans to develop a new surface mine that will provide coal for sales into both the domestic and international markets, while also preserving the right to develop an eventual coal-to-liquids plant that will use clean-coal technology, including carbon capture and sequestration. Project planners anticipate that demand for Powder River Basin coal supplies will begin to rapidly escalate as Appalachian coal supplies continue to be curtailed as a result of added mining restrictions in that region.
The Project contains one of the largest energy resource concentrations in North America and will bring significant economic benefit and jobs to the Crow people and the state of Montana, which has led to strong community and government support.
Beneficiation Potential
Coal beneficiation, a process of increasing the caloric value of coal produced from a mine, is an important aspect of our new business plan and could add significant value to the Project. Although the forecast reduction in the supply of higher calorific coals from Appalachia will rapidly increase the value of non-beneficiated coal from the Project, beneficiating some of the Many Stars supply via mechanical processes or via blending with other coals could the improve overall value of the resource. Project planners are currently assessing several mechanical technologies that appear well suited to drying and processing our coal resource for the purpose of increasing the caloric value of the coal from the Many Project’s coal resource. Such technologies will improve profit margins associated with exporting coal both domestically and to Asia in direct competition with Indonesian coal. We believe that this will provide an early financial benefit to the Project and will create a stronger foundation in support of our integrated business plans that includes CTL over the long term.
CTL Potential
As an added opportunity once market conditions and US Government energy policies provide an improved economic foundation for CTL activities, the Project contemplates the development of a series of 8,000 barrel per day (“BPD”) coal conversion units, with later expansion up to 125,000 BPD over the Project’s 70 operational phase.
The Many Stars CTL Project will be designed to use clean-coal conversion technology, including carbon dioxide (or “CO2”) capture for sequestration through injection into suitable below ground geological structures or use in enhanced oil recovery projects in the surrounding area. The selected coal liquefaction technology will produce ultra-clean alternative fuels, including synthetic diesel, gasoline and jet fuel. This technological process has already been proven and the products demonstrated with automakers and the United States military. AAEC believes that the Many Stars CTL Project will bring significant economic benefits and jobs to members of the Crow Tribe and residents of the state of Montana, while also contributing to U.S. energy independence.
After evaluation of multiple Direct Coal Liquefaction (“DCL”) and Indirect Coal Liquefaction (“ICL”) technologies, the company has selected the ExxonMobil developed DCL process (exclusively licensed to Accelergy) for use in the proposed Many Stars CTL plant. This DCL process offers the following advantages: ~50% greater product yield per ton of coal; ~50% less water use; ~50% less CO2 production and significantly lower capital cost.
Agreements Completed
Approval of all key agreements with the Crow Tribe has been received from the Bureau of Indian Affairs (BIA), the primary approval agency, although those agreements remain subject to the final approval of the Secretary of the United States Department of the Interior (the “Interior Secretary”) pending compliance with the National Environmental Policy Act and any other requirements imposed by the Interior Secretary under the Indian Mineral Development Act of 1982 (IMDA) once additional planning and engineering is complete.
Infrastructure
Rail transport infrastructure is nearby to the Many Stars Project site, enabling coal sales into the domestic market as well as transport to the Roberts Bank, British Columbia export terminal or other terminals to be likely constructed for transport of Many Stars coal into the international markets. Existing pipeline networks are adjacent to the Project site to support longer term CTL distribution.
Protecting Our Environment, Strengthening Our Economy
The Many Stars project will be an environmentally responsible project that respects the land, water and air. We plan to capture and sequester the vast majority of the carbon dioxide produced at the facility. The captured CO2 may be sequestered in deep saline aquifers below the Crow Reservation or will be captured and supplied by pipeline to regional oil fields for use in enhanced oil-recovery projects.
Water is a precious resource and our facility design and operation will reflect our commitment to minimize water use and maintain water quality. Engineering plans call for use of the latest technology to reduce water use. The mine and plant will have no impacts on the blue ribbon fisheries of the Bighorn River or other rivers in the area.
The Many Stars facility will provide lasting economic opportunity for the region. In addition to creating up to 2,000 construction jobs and up to 900 permanent jobs, the project will stimulate the creation of numerous regional support industries. We are committed to using tribal businesses to the greatest extent possible in the construction of the facility. The project will also directly provide scholarships for Crow Nation students to attend Montana universities, and will provide funding for training programs that will be needed to prepare future employees.
Where We Go from Here
The Crow Nation and AAEC have signed formal agreements under which the Crow Nation has committed coal and water resources, and AAEC has committed to providing development capital and project management. We also have an exploration agreement under which the project company will further evaluate coal resources and select a final site for the mine and plant.
During the next 12–18 months, we will endeavor to move the project forward in the following key areas:
- Coal resource assessment
- Coal beneficiation planning
- Off-take agreements planning
- Environmental permitting
- Mine planning
- CTL long-term planning
A final decision on mine and plant locations will be made after additional evaluations over the next year. The plant and mine will be located in close proximity to each other to minimize coal transportation.
We are excited about this project and look forward to becoming a larger part of Montana’s energy industry.
For More Information
Please contact us at the Many Stars Inquiry Line (406) 638-4437
or send an e-mail request to info@manystarsctl.com
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