Altius
This project is part of our
All-Canadian royalty portfolio

Highvale (thermal coal)
Prairie Royalties

Location
80km west of Edmonton, Alberta, Canada

Operator / Utility Company
TRANSALTA
www.transalta.com

Commodity
Electrical Coal "mine mouth" (tonnage based royalties with no commodity price exposure)

*Asset Profile
LTM (as of January 31, 2016) Royalty Revenue $1.1 million

*Altius anticipates royalty applicable lands at Highvale to generate ~$1.3 million per year from 2016-2030.

The Highvale mine is located approximately 80km west of Edmonton, Alberta. The mine is Canada’s largest surface strip coal mine, covering 12,140 hectares and has an annual production capacity of 13mt. Operations commenced in 1970 and five pits are currently actively licensed and mined. Four draglines are used to remove overlying rock layers and to expose and extract coal reserves.

Coal is delivered by road to the Sundance and Keephills power stations, both owned and operated by TransAlta and which are adjacent to the Highvale mine. The Sundance power station is comprised of four power generating units with total capacity of 1,566MW with the first units commissioned in the 1970s. The Keephills power station has a total capacity of 766MW and began operating in 1983. The coal is also delivered to the Keephills 3 power station which began commercial operations in late 2011 and has a total capacity of 450MW. Sundance power units 3, 4, 5 and 6 are expected to be decommissioned in 2026, 2027, 2028 and 2029, respectively, Keephills power units 1 and 2 in 2029 and the Keephills 3 power station in 2061. Mining is expected to move to areas outside those covered by the royalty agreements in 2023.

Coal produced is suitable for direct delivery from the pits to a power plant, with no processing or preparation necessary. The coal has low sulphur content, usually less than 1%.

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