Milner Power Inc

Website Links

Description

H.R. Milner ("Milner") is a 150 MW coal-fired power station located near the town of Grande Cache, Alberta, which has been in continuous operation since 1972. Effective March 31, 2005, MAXIM completed the acquisition of MPLP from the existing partners in the Partnership, each of whom acted at arm's length to MAXIM. The acquisition was completed through the issuance of 242,398,584 common shares of MAXIM to the remaining partners in the MPLP, at a deemed price of $0.32 per share, for aggregate deemed consideration of approximately $77,600,000. Approximately three years remain on the initial term of a five year coal supply agreement ("CSA") with Luscar Limited ("Luscar") for the supply of up to 540,000 tonnes of thermal coal per year. There is an option to extend the CSA by a further five years. The high volatile bituminous coal is sourced from Luscar's Coal Valley mine located approximately 100 km south of Edson, Alberta. The coal leases held by MPLP provide MAXIM with the opportunity for the potential mining of coal which could be utilized ultimately by Milner or sold in the international marketplace. Both the long-term CSA and the coal leases were acquired pursuant to the transaction. Milner will continue to meet license limits for Nitrogen Oxides ("NOx"), and Sulfur Dioxide ("SO2") through the end of design life (2012). MAXIM estimates that Milner will be neutral with respect to future Greenhouse Gas ("GHG") emission limits, and that the facility is already in compliance with new Alberta mercury regulations to be implemented in 2010. An external Health and Safety audit was conducted at Milner and resulted in the facility receiving a Certificate of Recognition in 2005 for the development of a health and safety program which met established standards set by the Alberta Association for Safety Partnerships and Alberta Human Resources and Employment. Milner is considered to be operating within acceptable environmental parameters and personnel are trained in environmental performance and continuous improvement.

Products & services

Similar companies nearby