Coal Age

NOV 2014

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The suit contends Williamson purchased the rights "at prices far exceeding their market value," in some cases paying five times what they were worth. "Because of the size of the purchases and their location to MEC mining operations, the mining rights pro- vide no mining potential to Williamson. Rather, the only economic value of these purchases to Williamson is to frustrate MEC's min- ing operations." As a result of Williamson's alleged actions, Murray said it has been forced to spend millions of dollars to buy mining rights far earlier than it ordinarily would. "Typically," it said, "MEC does not purchase mining rights to a property until one to five years (depending on various factors) prior to beginning mining opera- tions on a tract identified in the plan." In addition to the injunction request, Murray is seeking unspecified damages from Foresight, based in St. Louis. A Foresight spokeswoman did not return calls seeking com- ment on the refiled suit. Murray Energy Completes CONSOL Illinois Reserve Deal Just months after acquiring several Northern Appalachian mines from CONSOL Energy, Ohio producer Murray Energy has com- pleted a purchase of more coal reserves in Illinois from the Pennsylvania-based miner. The deal includes about 100 million tons of reserves and resources from the Herrin No. 6 seam in Saline and Hamilton counties, as well as leases and surface rights previously owned by CONSOL. The Hamilton reserves are adjacent to the company's existing New Era underground operation and positions the complex for an additional 20 years of continued operation. With the new purchase, Murray Energy's now has reserve hold- ings equaling approximately 3 billion tons. "This acquisition is a significant investment in The American Coal Co. and our continuing operations in the Illinois Basin," Chairman, President and Chief Executive Officer Robert E. Murray said. "Indeed, we are proud to provide high-paying, well benefited jobs to our 1,000 employees in the state of Illinois." Murray Energy now has a staff of 7,400 at its 12 currently active mines in six states. Corsa Coal on Track to Meet or Exceed Last Year's Production Canadian-based coal producer Corsa Coal Corp. is starting to reap the benefits of a second continuous miner unit that went into pro- duction this fall at the Casselman underground low-volatile metal- lurgical mine in Garrett County, Maryland. The mine, operated by the company's Wilson Creek Energy subsidiary, sells met coal to both domestic and export customers. The new unit, however, is expected to produce coal primarily for sale in the United States. Through three quarters of 2014, Casselman produced about 200,000 tons of coal, placing it on track to meet or exceed last year's total of 248,532 tons, according to the U.S. Mine Safety and Health Administration. However, output ticked up in the third quarter to 96,429 tons, up from 70,252 tons in the second quarter. Eventually, the addition of the second unit should enable Wilson Creek to double Casselman's annual production to about 500,000 tons, according to COO Keith Dyke. Earlier this year, Corsa, headquartered in Toronto, purchased PBS Coals from Russia's OAO Severstal for $60 million. Following the acquisition, Corsa idled one unit at the three-unit Kimberly Run underground met coal mine in Somerset County, Pennsylvania, because its economically mineable reserve had played out. Dyke said some of the idled unit's production will be picked u p b y C a s s e l m a n . K i m b e r l y R u n ' s o t h e r t w o u n i t s r e m a i n i n operation. In a technical report prepared in October on the PBS acquisi- tion, Corsa said PBS controls approximately 123.34 million "mea- sured and indicated in-situ" coal resource tons. Of that total, 86% are measured and 14% are indicated. The report said PBS controls about 37 million tons of "proven and probable" coal reserves, of which 80% are proven and 20% are probable. Of the total coal reserve, about 2.84 million tons are recoverable through surface mining and 34.16 million tons are recoverable through underground mining. Improving Sales Offset IB Decline for Alliance Higher Appalachian coal sales volumes that offset a slight decline in the Illinois Basin (IB) helped Alliance Resource Partners boost sales to 9.8 million tons, a 3.4% gain, in the third quarter and increase net income to $120 million, a 17.6% jump over a year ago. n e w s c o n t i n u e d P E O P L E I N T H E N E W S The Kentucky Coal Association (KCA) selected Kentucky State Rep. Jim Gooch Jr. as its Coal Miner of the Year for 2014. KCA president Bill Bissett said that the annual award, announced October 24, was given to the House Natural Resources Committee leader for his position as a "proven leader who possesses a tremendous knowledge of Kentucky, its economy, and the direct connection between how we generate electricity and the economy of the Commonwealth." Bill Rusnack , a member of the Peabody Energy board of directors, has been named a recipient of the St. Louis Business Journal's third annual Outstanding Directors Awards. Rusnack, a Peabody board member since 2002, is the chair of the Audit Committee, and a member of the compen- sation and executive committees of Peabody's board. Rusnack served as president and chief executive officer and a member of the Board of Directors of Premcor Inc. from April 1998 until April 2002. John I. Kyle has joined Behre Dolbear Group. Kyle has authored compliant reports, prepared economic valua- tions for mining properties, and directed feasibility stud- ies from conceptual through definitive stages. He has broad-based international experience working with pro- jects involving precious and base metals, industrial, heavy, and rare earth minerals, coal and uranium. He earned a B.S. in mining engineering from Colorado School of Mines and an MBA from the University of Denver. The U.S. Energy Secretary appointed University of Wyoming professor Dr. Maohong Fan to serve on the National Coal Council. Fan focuses his research on coal conversion. The National Coal Council advises the Department of Energy on coal issues. m 12 www.coalage.com November 2014 Jim Gooch Jr. John I. Kyle Dr. Maohong Fan

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