Coal Age Magazine - For nearly 100 years, Coal Age has been the magazine that readers can trust for guidance and insight on this important industry.
Issue link: https://coal.epubxp.com/i/110818
news continued tons of fully permitted proven and probable reserves under lease, and Rhino said it has the opportunity to add an additional 15 million tons of reserves. Rhino said it anticipates cash expenditures of up to $17 million on mine development activities this year and another $22 million in 2014. Initial production is targeted for mid-2014, with ramp-up to an 800,000 annual run rate by 2015. The company said it expects to spend another $23 million to boost Pennyrile���s output to 2 million tons a year by 2017. Pennyrile is expected to be a continuous miner operation. Over the next couple of years Rhino also intends to open two new surface mines at the Rhino Eastern deep mine complex in West Virginia. Both mines would produce in the range of 800,000 to 1 million tons of mostly met coal. In an operational update provided by the company in late January, Rhino said it had completed negotiations with its met coal customers for delivery of approximately 380,000 tons of met coal during 2013. In the fourth quarter, Rhino Eastern���s met coal output was about 54,000 tons with sales of 33,000 tons. Rhino said normal operations have continued at Rhino Eastern despite Patriot���s bankruptcy filing last year, although weak market conditions ���have negatively affected met coal sales from this operation.��� Coal Fatalities Remain Low Preliminary data from the Mine Safety and Health Administration indicates that, in 2012, mining fatality rates reached an all-time low for the second straight year. Fatality rates are calculated based on the number of mining deaths per 200,000 hours worked. Thirty-six miners (19 in coal and 17 in metal/nonmetal mining) died in work-related accidents at the nation���s mines in 2012, making it the second-lowest annual fatality total on record, one more fatality than the 2009 historic low of 35. The leading cause of fatalities during 2012 was powered haulage, which claimed the lives of 10 miners. Other causes included machinery accidents, which killed six; slip or fall of person accidents, which also claimed six lives; and rib falls, which killed three miners. Most notable was the number of supervisor deaths, which accounted for nine fatalities, or 25% of the total��� a much higher percentage than in previous years and cause for concern. Rhino added its Castle Valley operation in Utah produced 230,000 tons of coal and sold 242,000 tons in the final three months of 2012. Castle Valley���s sales remain fully contracted through 2014. The company���s Central Appalachia mines produced 384,000 tons of steam coal and 79,000 tons of met coal in the fourth quarter. On the downside, Rhino reduced production by about half at Sands Hill in Ohio ���to align 2013 production with committed sales.��� Sands Hill produced nearly 685,000 tons in the first three quarters of 2012 and 890,438 tons in 2011. Apollo Global, NRI Announce Partnership NRI Management Group LLC and affiliates of Apollo Global Management, LLC announced they have formed a partnership to invest in mining properties throughout the world, with a primary focus on coal. The strategic partnership, backed by an equity commitment of $300 million from funds affiliated with Apollo, will focus on mining and related opportunities in established regions throughout the world. NRI, headquartered in Richmond, Va., has a long established mining operations team led by industry veteran Gary Rogliano, CEO. With more than 20 years of experience in the global mining industry, including serving as CEO of INR Energy, LLC and CFO of Pittston Coal, Rogliano has an outstanding track record of leading teams to acquire, develop and operate mining properties around the world. NRI���s executive management team has extensive experience in building successful private equity-backed mining companies including INR. NRI will focus primarily on coal mining and related assets, as the demand for metallurgical coal continues to rapidly increase throughout the world. Demand for thermal coal is also expanding as the worldwide need for electricity, particularly in developing economies, is expected to increase by 70% by 2035 according to the IEA. NRI is targeting the acquisition and development of mining assets in the Americas and throughout the world, with a focus on those assets that offer strong export opportunities and participate in international seaborne trade. NRI���s emphasis is on both mining development opportunities and operating properties where its team can leverage its expertise to accelerate growth and create long-term value. MSHA Continues Increased Emphasis on Miner Discrimination Complaints The Mine Safety and Health Administration filed 46 requests for temporary reinstatement during the 2012 calendar year, more than double any previous year, with the Federal Mine Safety and Health Review Commission on behalf of miners who submitted complaints of discrimination in the form of a suspension, layoff, discharge or other adverse action. Additionally, the department filed 34 complaints alleging mine safety discrimination during 2012, also more than in any previous year. The department filed 101 temporary reinstatement requests in calendar years 2009 - 2012, or an average of 34 per year, compared to an average of six per year 1993-2008. Additionally, the department filed a total of 105 discrimination complaints with the commission 2009-2012, compared to 63 during the prior four-year period. 20 www.coalage.com February 2013