Allegiance Coal Ltd. was set to begin production at the New Elk Mine in Colorado in late April, with first shipment expected in June.

Electricity supply underground along with the ventilation fan have been activated allowing the mine portal entrance to be opened. A Colorado State Mine Safety and Rescue team entered and inspect an area where water had collected. The majority of the water has now been pumped, and the mine safety and rescue team has re-entered the mine and continued inspection.

According to the company, the conditions underground were very good with minimal rehabilitation required. Mine staff also visually inspected the roof and floor conditions for the first time and said they were encouraged by the strong roof and firm floor, which validate the production assumptions relied on in the mine plan. Equipment and wash-plant refurbishment is almost complete.