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0 REPORT SUMMARY <br />INTRODUCTION <br />As at the end of 2003, Colowyo Coal Company (CCC) nominated 35M tons of remaining <br />open cut and highwall mining reserves, limited to the West and East Pit areas of the existing <br />operation. Contractual commitments at the end of 2003 stood at 41M tons, including supply <br />to the local Craig power station at approximately 2.3M tonslyr until 2014. There is a <br />contractual shortfall of approximately 6M tons. 2004 mine production will be approximately <br />6M tons and is limited by market demand, but this production level cannot be sustained <br />without identification and development of additional reserves. <br />During 2003 a study was undertaken of options to extend CCC coal reserves, known as the <br />Colowyo Cost Ranking Study (CRS). The CRS considered three potential open cut resource <br />areas located within reasonable proximity to the existing operation as shown in Figurel.l, <br />namely; <br />South Taylor, <br />Lower Wilson, and <br />• <br />• <br />Collom <br />RI() <br />I'I \'l P( ) <br />TS Ref: DRAFT Version: 1 <br />Figure 1 -1: Colowyo Coal Company Resource Areas <br />