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Company Overview  

Ouro Mining Inc. (“Ouro”) is a private corporation incorporated in the State of Oklahoma. Ouro is focused on the development of its flagship Heavener Coking Coal Project (“Heavener” or the “Project”), which straddles the Oklahoma-Arkansas boarder. Since 2012, Ouro has invested over $50m into Heavener. The Company is currently completing a Definitive Feasibility Study (“DFS”) and final-stage state and federal permitting ahead of a final investment decision for a $300m development at Heavener.

Heavener is located on the Oklahoma-Arkansas border approximately 30 miles south of Fort Smith in Le Flore County, Oklahoma and Scott County, Arkansas. Ouro currently holds 8 coal leases totaling 3,130 hectares and is currently in the permitting process:

Once fully operational, the underground mine will produce approximately 3.5 million tons per annum of premium coking coal for US domestic and export markets over a 20-year mine life.

The Project design contemplates a state-of-the-art underground long-wall operation with mined coal conveyed to a centralized coal processing and rail-load out facility. Ancillary infrastructure will include the construction of a 4-mile rail spur, establishment of grid power connection and minor access roads.

The Project has access to excellent infrastructure with an existing Watco Companies short-haul rail line passing in close proximity with connection to Kansas City Southern and BNSF long-haul routes enabling access to several Gulf of Mexico export terminals along with efficient transport to US domestic customers. Coal can also be trucked to ports on the Arkansas River. Primary export markets will include South America (Brazil) and Western Europe with access to Asian markets via the Panama Canal. By virtue of being an underground mining operation, the Project will include minimal surface disturbance with visible elements largely limited to coal processing and train-load out infrastructure and a coal refuse area. Following the completion of mining, the area will be fully rehabilitated. Areas subject to underground mining will incur some subsidence, although existing land usage will be possible once mining has been completed. Several ventilation shafts will be located on Forest Service lands but otherwise impact to flora and fauna is expected to be minimal, and no major land clearing of forested areas will be required.

The majority of surface infrastructure will be located on Ouro privately held land previously disturbed from historic small-scale mining operations. Project development will not impact any prime agricultural land or existing local economic activity.

Mine construction and development are planned to commence in Q2 2022 ahead of first coal production in 2023.

Coking Coal Overview

Coking coal, also known as metallurgical coal, is one of the key irreplaceable ingredients in the production of steel and currently serves as a primary component for ~70% of global steel production. Heavener will produce a premium coking coal for consumption by both US and export steel producers. Premium coking coals such as Heavener are globally scarce and typically attract a market price 2-3x the price of thermal coals used in power generation.

Heavener will also produce a small amount of by-product thermal coal which will be available for consumption by local power utilities in Arkansas and Oklahoma. This will displace thermal coal currently transported to the region from the Powder River Basin and result in lower delivered costs for local power utilities.

Project Partners

Ouro is majority owned by Taurus Funds Management (“Taurus”), a specialist mining investment firm which represents the interests of a number of large US pension plans, philanthropic trusts and endowment funds. Taurus has been an investor in Ouro since 2012. At present, Taurus manages approximately $2 billion of long-term capital and focuses on the development and operation of mining projects around the world with a particular expertise in coal operations. Amongst other investments, Taurus currently operates the Foxleigh Coking Coal mine in Australia which employs over 400 people and generates revenue in excess of $300m per annum. Taurus has been an active investor in the global mining sector since 2006, and during this time has developed a best-in-class environmental and safety track-record.

Other Project participants include:

  • Marshall Miller & Associates: DFS and Project permitting co-ordination;
  • Watco Companies: short-haul rail;
  • Kansas City Southern: long-haul rail;
  • McGehee Engineering Corp: Environmental Studies;
  • Arkansas Valley Electric Cooperative Corporation (AVECC): one of the State’s 17 licensed customer delivery power companies;
  • Arkansas Electric Cooperative Corporation (AECC): State regulator and wholesaler of power, interconnection service to AEP transmission infrastructure;
  • American Electric Power Service (AEP): licensed power utility company.

Social Benefits

Social benefits to be realized by the community as a result of the proposed Project include:

  • Increased local employment opportunities for mine, coal preparation and railroad loadout operations;
  • Opportunities for mine support businesses such as machine and hydraulic shops, as well as mining supply companies;
  • Increased sales to local/regional support businesses such as mine equipment and supply companies, engineering firms and those providing construction services;
  • Business opportunities and increased sales for existing community support businesses such as restaurants, retail, hotels and grocery establishments;
  • Increased Arkansas ($0.02 per ton) severance tax revenue.

In addition to payments made directly into the local economy, the Heavener operations will offer significant employment opportunities for the region. The total number of employees projected for the Heavener operations is approximately 275 FTE jobs. It is estimated that approximately 1,375 jobs (using a multiplier of 5) will be created by the secondary, basic industries necessitated by the mining operation. Thus, the venture could have an overall impact of more than 1,650 jobs.

Contact Details

For further information on Heavener or Ouro please contact the below company representatives:

Corporate & Project Matters Government Liaison Permitting Matters
Mr John Fisher-Stamp
Ouro Mining Inc
3718 Leigh Avenue
Fort Smith, Arkansas
+1 479 739 1453
John.Fisher-Stamp@ouromininginc.com
Mr Loren Monroe
BGR Group
601 14th Street NW
Washington DC
+1 202 333 4936
lmonroe@bgrdc.com

Rett Hatcher
Gilmore Strategy Group
1512 W 3rd Street
Little Rock, Arkansas
+1 501 777 5149
rett@gilmorestrategy.com
Mr Matt Whittaker
Marshall Miller & Associates
582 Industrial Park Road, Bluefield, Virginia
+1 276 326 5271
matt.whittaker@mma1.com

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