Top Bidder Offering $3 Million for Mat-Su Coal Lease
The single tract near Chickaloon is believed to contain high-quality, low-sulfur bituminous coal. Riversdale will need to secure an exploration permit from the Department of Natural Resources in order to evaluate the geology and determine if any of the coal resources can be mined.
Riversdale’s bonus bid, rental payments and royalties from any future mining on the land will fund programs and services for Alaska Mental Health Trust beneficiaries, who include people with mental illness, developmental disabilities, chronic alcoholism and other substance-related disorders, Alzheimer’s disease and related dementia, and traumatic head injuries that result in brain injury.
Riversdale Alaska LLC is a wholly-owned subsidiary of Australian Riversdale Resources Pty Ltd. Riversdale management were previously involved in the development of the Benga Coal Project, an anthracite coal mine in Mozambique, that was purchased by Rio Tinto Ltd for A$ 4.0 billion in late 2010.
In addition to Riversdale, the TLO received bids from Usibelli Coal Mine, Inc., Alaska Mining and Energy Co., and Arctic Coal LLC for The Trust’s coal holdings in the historic Chickaloon coal mining area.
Annual rent for this lease offering is $4 per acre per year, adjusted in five-year intervals. The Trust will receive a royalty of 5 percent of the gross value of any coal mined and sold from the land. The goal for issuing any coal or mineral lease by the TLO on Trust land is to obtain royalty payments for the value of the resource and to provide a long-term revenue stream for beneficiary programs.
About the Alaska Mental Health Trust Authority (The Trust):
About the Mental Health Trust Land Office (TLO):
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Alaska Mental Health Trust Authority 3745 Community Park Loop Suite 200, Anchorage AK 99508
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