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Issue link: https://coal.epubxp.com/i/105148
southern coal continued Southern Coal recently purchased and refurbished two P&H; 2800 electric shovels. tantly it has reduced the coal hauling headaches." Owning a trucking company has given Southern Coal tremendous flexibility. "If we encounter rail problems, we can haul coal by truck to the river," Justice said. Hauling More, Pushing Less Ironically, Southern Coal was holding another equipment auction during Coal Age's December visit as more new equipment was en route. "It sounds crazy, but we are buying $70 million of new equipment from Cat at the same time we are hosting an auction for used equipment," Justice said. Southern Coal purchased 33 Cat 777 haul trucks and six 789 haul trucks. Justice gave two reasons for the decision to move to wheel loaders operating with smaller trucks. "As a company we have moved almost completely away from dozers," Justice said. "Ten years ago we probably pushed half of the material and loaded half the material. Today we push 7% and load 93%. Dozers are economical to operate. With the lack of valley-fills in today's mining plans, the re-handle with dozers is just not cost effective. Once material is loaded into a truck, there is no reason to have any rehandle. Over the last two years, we have sold 40 dozers [D11s and 475s] and replaced them with loading equipment." 34 www.coalage.com Bishop and A&G; Job No. 21 both operate with large loading tools and they run 200-ton Caterpillar 789 haul trucks and Komatsu 730 haul trucks. "Everywhere else we have always operated Cat 785s and Cat 777s in combination," Justice said. "Two 150-ton Cat 785s will haul as much as three 100-ton Cat 777s. We are getting better overall productivity from three Cat 777 haul trucks than we were with two 785s. That's mainly a versatility and downtime issue. If one truck goes down, you lose 50% of your production with 785s as opposed to 33% with Cat 777 haul trucks. We study this constantly. Three Cat 777 haul trucks are just a better option. We have eliminated a lot of our 785 haul trucks." The decision is mainly production driven, followed by versatility, and then resale value. The Cat 777 also offers a level of asset value protection. "Lots of people can use a Cat 777 haul truck," Justice said. "Even a large construction project can use a Cat 777 haul truck." During tough times, it is also easier to get tires for a Cat 777 haul truck. Underground Operations In 2013, Southern Coal's underground production will amount to about 4.5 million tons. The company has nine active underground mines and it is in the process of rehabbing two mines that were acquired from CONSOL Energy, the old Jones Fork properties. The project started in October 2012. "We are getting the outside facilities set and we are just about ready to go underground," said Randy Phelps, underground operations manager, Southern Coal. "We will advance about 3,000 ft into the mountain. It was above drainage and the roof is still in great condition." The company is also adding a single section at Wilson No. 1 (Bishop), the E3 mine, in Knott County, Ky. (Kentucky Fuels), and the Nine Mile No. 1 mine in Wise County, Va. (A&G;). Most of the spreads consist of Joy 14CM15 continuous miners, some Joy shuttle cars, but mostly Auxier Welding shuttle cars, Fletcher roof bolting machines, and Joy feederbreakers, Phelps explained. Most of the mines produce between 250,000 to 500,000 tpy. On average, mining heights are 42 to 46 inches. The Virginia operations have the most overburden, as much as 1,000 ft. "Safety is at the forefront of everything we do," Phelps said. "We dedicate a lot of time and money to stay in compliance. That is reflected in our safety record, which is very good." The bulk of the scale-up that Southern Coal is about to experience will come from the underground side of the business. Phelps and his team will be hiring and training a lot of miners. "A lot of good coal miners are out of work today," Phelps said. "We are looking at quite a bit of growth. It's a busy time for us and that's a good problem to have." Managing mining operations and providing jobs instills a great sense of pride for both Phelps and Merritt. Reacting quickly, Southern Coal has turned the tables in its favor at a time when most mining companies in the region are still in survival mode. The company is committed to the coal market and it has vast permitted reserves, which will give it staying power. Moreover, whether it was moving away from valleyfills or running a prep plant without a refuse impoundment, it adapted its plans to keep operations on track. Last year, Southern Coal selected Roanoke as its headquarters and purchased the Bank of America building in the downtown area. "We had administrative people spread out everywhere, Beckley, W.Va.; Middlesboro, Ky.; Wise, Va., etc.," Justice said. "It's difficult to get a professional to move to those 'remote' locations. Roanoke has been a great move for the company." January 2013