A Publication Dedicated To Coal People

                          July 2008  Issue 

































 

capsule news

 

The Indiana Department of Natural Resources has presented its 2007 Excellence in Mining and Reclamation Award to Peabody Energy’s Miller Creek Mine.  The award recognizes successful efforts resulting in the reclamation of nearly 1,110 acres of highly productive farmland and wildlife habitat at the mine’s Sugar Ridge Pit located in south central Indiana. The mine is operated by Black Beauty Coal, LLC, a Peabody subsidiary.  The award recognized employees for utilizing innovative techniques to restore prime farmland, as well as for soil replacement and handling techniques that exceed Indiana state requirements. Miller Creek has approximately 140 employees and is active in the community, recently partnering with the Indiana Prime Farmland Team to host a “Field Day” to educate local residents about mining and reclamation.

CONSOL Energy Inc.’s Island Creek Coal Corporation VP #2 mine awarded the Virginia Mining Association’s award for Best Completed Deep Mine.  The award was given to Don Gibson, CONSOL energy general manager of reclamation, to honor CONSOL for its reclamation practices. Reclamation of the VP#2 mine was completed in December 2007 and included the re-grading of 29 acres; the placement of more than 50,000 cubic yards of topsoil; the construction of more than one mile of ditches; and the reseeding of the entire area. A total of16,000 trees were also planted by hand. The new trees are part of the post mining land use of forestland on the VP#2 site.

Arch Coal, Inc’s Mountain Coal Company’s West Elk mine earned two state awards for its outstanding environmental achievements in 2007.

The Colorado Division of Reclamation, Mining and Safety presented West Elk with the awards at the Colorado Mining Association’s 110th National Western Mining Conference and Exhibition in Denver.

West Elk mine and its employees were honored for the application of environmentally sound practices in the engineering design and construction of Sylvester Road. The 1.3 mile road was built on private and U.S. Forest Service property to reduce traffic through the town of Paonia. In addition, West Elk was recognized for operating more than eight years without a state environmental violation.

West Elk also was recognized as a senior participant for its outstanding voluntary contributions to Colorado’s Pollution Prevention Program, including the development of an outstanding employee health and safety plan for all employees, the conservation of water resources and the compacting of solid waste.

Mountain Coal Company’s West Elk mine is located in Somerset, Colo. Approximately 400 people are employed at West Elk.

CONSOL Energy Inc.’s  Fola Coal Company Surface Mine 6 in Bickmore, WV, has been presented with the Appalachian Regional Reforestation Initiative’s Excellence in Forestry Award for 2007.

The award, presented by the U.S. Office of Surface Mining, on behalf of the Appalachian Regional Reforestation Initiative, recognizes exemplary efforts in forestry reclamation. The Appalachian Regional Reforestation Initiative, an OSM initiative, is a coalition of groups, including citizens, the coal industry, and government, dedicated to restoring forests on coal mined lands in the Eastern United States.

The award has been presented annually since 2005 to individuals, operators and/or organizations, and was created to acknowledge and give public recognition to those responsible for Appalachia’s most outstanding achievements in forestry reclamation and to encourage the exchange and transfer of successful reforestation technology.

Fola Coal was nominated for the award by the West Virginia Department of Environmental Protection.

In January, Fola Coal also won the West Virginia Foresters Association Excellence in Forestry Award.

Fola Coal has planted more than four million trees on the company’s surface mine property in West Virginia through various reclamation efforts and other events. The company has previously participated in other tree planting outings and in other environmental initiatives, including projects with Ducks Unlimited and the National Wild Turkey Federation.

For a third consecutive year, Arch Coal’s  Canyon Fuel Company’s Skyline and Sufco mines earned a Utah Earth Day award for outstanding efforts in environmental stewardship.

The Utah Division of Oil, Gas and Mining board of directors presented Skyline and Sufco officials with the award for wildlife habitat improvements on April 23.

Skyline mine was honored for improvements in local fish habitat and migration.  To gain this recognition, employees of Skyline, with the oversight of regulatory agencies, modified several established beaver dams to enhance fish migration.  This effort allows fish to access an additional 1.5 miles of stream in Eccles Creek for spawning.

Sufco mine was recognized for the enhancement of sage grouse habitat to a half-acre area in Manti La-Sal National Forest.  Sufco employees fenced, reseeded and installed water soaker hoses to a mesic area with abundant insects and broad-leafed herbs, which created ideal nesting and feeding spots for the sage grouse.

“The employees of Skyline and Sufco mines have once again proven through their actions what it takes to be good stewards,” said Arch Western Bituminous Group’s President Gene DiClaudio.  “Acting as responsible corporate citizens is a core value at Arch Coal, and we’re very proud of the example these Utah employees have set in promoting feather-and-fin habitat.”

Arch Coal’s Canyon Fuel Company is Utah’s largest coal producer and a large, state employer with a workforce of approximately 800.  Sufco mine is located near Salina, Utah, and has approximately 360 employees.  Skyline mine is located near Scofield, Utah, and has more than 200 employees.  Through its national network of mines, Arch Coal provides the fuel for approximately 6 percent of the electricity generated in the United States.  The company maintains its corporate headquarters in St. Louis, Mo.

U.S. coal demand is expected to reach 1.218 billion tons in 2008, according to NMA’s mid-year coal production forecast.  NMA reports that U.S. coal exports are expected to jump to an estimated 60 million tons, 15 million more than were projected in January.  The projected demand will be met by expanded production in Western coal fields, with production from Eastern coal states remaining unchanged from January’s projections and imports declining somewhat to an estimated 32 million tons.  It was pointed out that the U.S. has an estimated 250-year supply of recoverable coal, the world’s largest reserves.  There is more energy stored in America’s coal reserves on an energy equivalent basis than the oil reserves housed in the Middle East.  Coal’s share of the electricity market is projected to grow to 54 percent by 2030.  A copy of NMA’s mid-year forecast is available at NMA Mid-Year Coal Forecast.

Flexco has expanded its facility at Grand Rapids, UT.  Flexco Grand Rapids, previously known as Clipper Belt Lacer, is a manufacturing facility for the Clipper Wire Hooks used for connecting light-duty conveyor belts in many industries and for the majority of Flexco’s Belt Conveyor Products (BCP’s), which include belt cleaners, and other products for the heavy-duty conveyor markets.  The company’s 60,000 sq. ft. expansion almost doubles the current manufacturing space of 72,000 sq. ft. and includes primarily manufacturing process.  A 5,000 sq. ft. training center, which will accommodate up to 100 people, has been added to enhance product-training capabilities and a wellness/exercise center for employees and their families was also added.  The expansion will allow Flexco to better support a wider range of product with increased efficiency levels, and it supports Flexco’s global focus and will provide the capabilities necessary.

West Hawk Development and Colorado energy firm FEB has signed a letter of intent to develop a coal mine and coal bed methane operation in Arkansas and Oklahoma.  Development and extraction will begin following a due diligence process to evaluate the best methods for mining as well as business alternatives for the property.  West Hawk adds that the low-vol, low moisture product has historically contained 6-8 percent ash and 1 percent sulfur with more than 13,000 Btu per pound.  The coal can be utilized in both the metallurgical and bituminous markets as well as for gasification via coal-t-liquids, coal-to-gas, or coal-to-power technology and may potentially support three separate mining operations with a 14-mile-long outcrop.

Strata Safety Products, Marietta, GA, has begun delivery of its steel walk-in and portable, inflatable emergency refuge chambers nationwide.  The chambers meet state and federal regulations to provide 96 hours of breathable air.  Strata said it expects all orders currently on its scheduled to be delivered by the end of 2008.

Kentucky’s Quest Minerals and Mining has signed a letter of intent to acquire assets of Mountain Ridge Mining, pending a due diligence phase.  A highwall miner and rights to mine an estimated metallurgical coal reserve of 6 million tons are included in the sale.  Most recently Quest Minerals made a “contingent offer” with a New Delhi, India group for up to 150,000 tons per month from Quest’s output at a cost of $114 a ton. The cal will come from the Lower Cedar Grove operation.

Patriot Coal has entered into a joint venture with Rhino Eastern for metallurgical reserves near Patriot’s Rocklick preparation facility.  Rhino has contributed reserves and $10.1 million in cash.  The agreement includes two existing underground operations with a reserve total of 5 million tons from the Eagle seam.  Coal from these mines will go to Rocklick plant for processing.  The company expects to build production to more than 500,000 annual tons by the end of the year.  Patriot currently has 1.3 billion tons of reserves across 10 company-operated mines.

The Donkin Coal Alliance, a joint venture between Xstrata Coal and Erdene Gold, are planning a large underground mine off the coast of Nova Scotia, Canada.  The plan is moving toward feasibility, which is expected to be completed by the end of this year.  The program focus is on assessing the geological, geotechnical and mining conditions of the project.  The Donkin project had an indicated resource of 101 million tons and inferred resource of 115Mt, and classified as high volatile A bituminous, high-sulfur, medium-ash coal.  A study by Norwest Corporation showed that the mine could yield up to 109Mt run-of-mine coal over a mine life of 30 years.

Interstate Power and Light Co. (IPL), a subsidiary of Alliant Energy Corp., Madison, WI, plans to install an $85 million catalytic reduction system and low nitrogen oxide burners at the Lansing Generating Station, a 317 megawatt power plant.  The system will remove more than 90 percent of nitrogen oxide emissions. Work will begin this summer.  IPL also plans installation of a baghouse that would capture some 90 percent of the mercury emissions from the power station.  Both installations could be completed by late 2009.

Consolidated Resources Group Inc., Delray Beach, FL, has acquired Mon View Mining Co., Uniontown, PA, for $25.4 million, which includes more than 1,200 acres at the Mathies Mine in Nottingham, Washington County.  Consolidated’s plan is to retrieve coal from above and below ground.

Five coal power plant in Ontario, Canada, plan to reduce greenhouse gas emissions by two thirds below 2003 levels by 2011.  Ontario’s Power Generation has to reduce combined emissions from 34.5 megatons to 11.5 megatons.  Two of the five plants operate outside Thunder Bay and produce small amounts of greenhouse gas.  Three plants in southern Ontario are the largest polluters.  Environment Minister John Gerretsen said in a statement that coal is being phased out, and Ontario is using more renewable sources of energy.

Buckeye Industrial Mining, Wellsville, OH, has received a $200,000 grant from the Ohio Rail Development Commission to assist in the construction of a coal transloading facility on 18 acres of Columbiana County Port Authority property.  The state grant will help with a $15 million project that is expected to benefit from Baard Energy’s proposed $5 billion Ohio River Clean Fuels coal-to-fuel conversion plant.  Baard plans to build its plant across State Route 7 from the industrial park on 357 acres of Port Authority land.  The transloading facility is expected to create 115 jobs on site and another 40 coal mining jobs at local mines.  It is expected to handle 35,000 carloads of coal annually.

Benetech, Inc., Montgomery, IL, has partnered with Millcreek Engineering to form a new Asset Enhancement Team to provide life cycle engineering and construction solutions for the coal-fired power industry.  Benetech offers a full range of products and services relating to the safe storage, transfer and processing of coal.  Millcreek is a material handling engineering group with experience in the coal-fired power industry.

Active Control Technology Inc., Toronto, Canada, announces a purchase order for ActiveMine TM, a wireless communications and locating system for mines, from West Virginia’s Stacy Lynn Coal Co.  ActiveMIne provides wireless digital voice and data communications for coal and other mines, satisfies state and federal regulations and, due to the system’s Starfish TM feature, meets low-cost requirements of smaller mining operations.

Penn Virginia Resource Partners, Radnor, PA, has acquired 29 million tons of coal reserves and 56 million board feet of hardwood timber in western Virginia and eastern Kentucky for $24.5 million.  The coal will be mined by International Coal Group Inc. subsidiary Powdul Acquisition LLC, and will be sold in the steam/compliance utility and metallurgical/steel markets.

The US Department of Energy has awarded $1.8 million to Virginia Tech for clean coal research at the school’s Center for Coal and Energy Research.  The fund will be used to evaluate the potential of carbon dioxide storage in unmineable coal seams.  Tech will conduct a feasibility study for a large-scale test where 100,000 tons of CO2 will be injected into a coal seam in southwest Virginia.  To date, $6.35 million in funding has been given to the carbon storage efforts.

Western Canadian Coal Corp.’s Brule mine has been awarded the 2007 John T. Ryan safety award with zero lost time accidents in the year by the Canadian Institute of Mining and Metallurgy. The award has been given since 1941 to the Canadian mine with the lowest injury rate per 200,000 hours worked.  The Brule mine is a previous winner of a John T. Ryan award as well as the provincial Stewart O’Brien and Edward Prior safety awards.  This is the fourth consecutive year the mine has earned a safety award.  Western Canadian Coal produces 3.7 million tons of coal a year from three mines in northeast of British Columbia.

International Coal Group Inc., Scott Depot, WV, has acquired the Powell Mountain Mining Operations in Kentucky and Virginia.  ICG bought the membership interests of Powdul Acquisition LLC, which owned the preparation plant, and the leasing of coal reserves from Dulcet Acquisition LLC, an affiliate of Penn Virginia Resource Partners LP.

Bucyrus International, Inc., S. Milwaukee, WI, has been recognized by IndustryWeek (IW) magazine as one of the “Top 50 Best Public Manufacturing Companies”.  IW reports the top 50 includes 12 petroleum and coal products manufacturers.  The six variables measured to create the IW 50 were profit margin, financial performance for the past three years in revenue growth, return on equity, asset turnover, inventory turnover and return on assets.  Revenues more than doubled for Bucyrus in 2007.

Cooperative research programs with industry leaders to solve identified material handling problems are a significant part of the mission of Martin Engineering’s new Center for Bulk Materials Handling Innovation (CFI), housed in a new 22,630 square foot facility at the company’s world headquarters campus in Neponset, IL.  CFI will collaborate with partners including corporations, industry associations, and universities for practical research to resolve the problems in the handling of bulk materials. Results will be used in the development of technologies to solve specific material handling problems.  Key ingredient will be in testing and analysis of the characteristics and performance of specific bulk materials in question.

GE Energy, Houston, TX, has signed a carbon sequestration alliance agreement with Schlumberger Carbon Services to accelerate the use of “cleaner coal” technology.  The agreement aligns GE’s experience in integrated gasification combined-cycle (IGCC) systems with proven carbon capture capabilities and Schlumberger’s geologic storage expertise and capabilities for site selection, characterization, and qualification. GE’s IGCC gasification process converts coal and other heavy fuels into a high-value fuel known as synthesis gas or syngas, which is then used in combined-cycle systems to generate electricity.  Schlumberger is a supplier of oilfield technology, integrated project management and information solutions that optimize reservoir performance.

Glen Raven Technical Fabrics, Logan, WV, announces that its portfolio of industrial textile products for the mining industry will be marketed under the Glen Raven brand. These products were formerly sold under the R.J. Stern name.  Glen Raven acquired R.J. Stern in 2007.  Glen Raven’s product line also includes Minemaster laminated ventilation brattice, Mine Grid longwall retrieval area supplemental support, and other products that contribute to mine safety and health.

Hirschmann Automation and Control (PAT), Chambersburg, PA, has named Columbus Equipment Co. as its new Premier Dealer for Ohio. Columbus Equipment carries Hirschmann’s entire line of PAT, Krueger, and Hirschmann branded load moment indicators, indicating devices, and sensors, including the iVISOR maestro LMI upgrade system.

Montana sits on America’s greatest coal reserves: 120 billion tons, worth about $1.5 trillion at current prices, according to the Montana Bureau of Mines and geology.  The state produced 43.4 million tons of coal in 2007, up 3.7 percent on the year.  Montana Governor Brian Schweitzer points out that nothing  more is going to happen until there is a carbon law.  He added that partnerships are being formed, capital is being raised and coal is being acquired, so everybody is ready to move as soon as there is a carbon law.  Montana’s Absaloka mine in the southeast produced a record 7.35 million tons last year and plans to expand into adjacent Crow Indian reservation land in 2009 to increase production.

ADA-ES, Inc., Littleton, CO, has approval from the Louisiana Dept. of Environmental Quality to construct and operate a facility producing up to 350 million pounds per year of activated carbon (AC) in Red River Parish in Northwest Louisiana. The state-of-the-art facility will produce AC for use in capturing mercury from coal-fired power plants.  ADA-ES has also been awarded four contracts for ACI systems (activated carbon injection) to be delivered in late 2008 and 2009.  The awards are for existing power plants in the mid-Atlantic and north central regions and a new plant in the southwestern region of the U.S.  Two of the plants utilize bituminous coal and two plants utilize Powder River Basin coal for fuel supply. These four plants represent a total of 2,056 MWs of generating capacity.

Bucyrus International, Inc. has opened a new facility in Pearisburg, VA, located next to Bucyrus’ Service Center in Mountain View Industrial Park, that will manufacture belt terminal groups for the North American surface and underground mining markets.  The new plant creates up to 50 new jobs. The Bucyrus Belt Systems Division manufactures custom-designed heavy-duty belt conveyor solutions and conveyor products.  A belt terminal group typically consists of a discharge, drive, take-up and tail loading station.

Veyance Technologies, Inc., Birmingham, Al, has acquired the assets of National Belt Service (NBS) in Bessemer, AL, with additional operations in Wheeling and Charleston, WV, and Atlanta, GA.  NBS.  NBS employs about 75 associates and has annual revenue of about $20 million.  In February, Veyance purchased Monk Mining Supply, a coal mining conveyor belt service company in Tazewell, VA.  Following the acquisitions, Veyance can now provide services throughout the U.S. and Canada.