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news continued TOP 10 COAL-PRODUCING STATES
(in Thousand Short Tons) Week Ending (12/3/11) YTD '11 400,365
Wyoming
West Virginia 128,068 Kentucky
Pennsylvania Montana Texas
Indiana Illinois
North Dakota Colorado
99,393 54,627 39,031 38,971 33,460 31,848 25,937 25,639
YTD '10 408,528 125,177 97,494 54,600 41,580 37,923 32,527 30,939 26,963 23,464
U.S. Total 1,000,394 1,002,637
% Change -2.0 2.3 1.9 —
-6.1 2.8 2.9 2.9
-3.8 9.3
-0.2
The former Massey work force of more than 7,000 people has been trained in Running Right, Alpha's behavior-based safety process, which builds on transparency and empowering employees to make safety and workplace improvements. Employees are encouraged to speak up by submitting suggestions and then partici- pating in developing and implementing action plans. In the first four months after acquiring Massey, Alpha devoted more than 60,000 hours of training to this effort, and safety performance has improved as a result.
Alpha said it has begun a second phase of training specifically targeting those with supervisory responsibilities, focused on two fronts: Running Right leadership and safety compliance. Since June 1,450 supervisors have completed leadership training and more than 1,000 certified mine examiners have completed safety skills training and extensive safety compliance training. Alpha has also conducted emergency response training for mine foremen, superin- tendents, safety staff and management in all its business units. Alpha has also devoted considerable resources to review mine plans at all of the former Massey operations. Those reviews have included ventilation surveys and modeling at underground mine sites, as well as analysis of geological, structural and roof support. To help expedite this work, the company has hired additional tech- nical services professionals and additional safety specialists.
MSHA Cites Corporate Culture as Root Cause of UBB Tragedy
The Mine Safety and Health Administration has imposed a fine of more than $10.8 million, the largest in agency history, following its investigation into the April 2010 explosion at the Upper Big Branch (UBB) mine, which was operated by Performance Coal Co., a sub- sidiary of Massey Energy Co. The investigation followed an explo- sion that killed 29 miners and injured two—the worst U.S. coal mining disaster in 40 years. A report concludes that Massey's corpo- rate culture was the root cause of the tragedy. MSHA has issued Massey and PCC 369 citations and orders, including an unprece- dented 21 flagrant violations, which carry the most serious civil penalties available under the law.
Secretary of Labor Hilda L. Solis, Solicitor of Labor M. Patricia Smith, MSHA Assistant Secretary Joseph A. Main and MSHA Administrator for Coal Kevin Stricklin met with families to share the agency's findings.
December 2011 W ORLD N E W S ¸ ˛ ˝ ¸
Anglo American will move forward with its $1.7 billion Grosvenor metallur- gical coal project in the Bowen Basin of Queensland, Australia. The green- field project is situated immediately to the south of the company's Moranbah North metallurgical coal mine and is expected to produce 5 mil- lion metric ton per year (mtpy) from a longwall operation over a projected life of 26 years.
"Grosvenor is the first of our next phase growth projects and will initi- ate our industry leading production growth of metallurgical coal from our Australian business over the next decade," said Cynthia Carroll, CEO, Anglo American.
The Grosvenor project forms a major part of the company's strategy of tripling met coal production from its Australian assets by 2020 using a standard longwall and coal handling and preparation plant (CHPP) design model. In its first phase of development, Grosvenor will consist of a single new longwall mine, targeting the same Goonyella Middle coal seam mined at Moranbah North, and will process its coal through the existing Moranbah North CHPP and train loading facilities. A pre-feasibility study for expansion by adding a second longwall at Grosvenor is under way. "We are excited to be developing the first growth phase of our planned Moranbah hub which will drive our target of 12% compound annual produc- tion growth by 2020," said Seamus French, CEO, Anglo American's Metallurgical Coal business. "Grosvenor and the wider hub will produce some of the highest quality coking coal in the world and represents a major investment commitment for the region. Our longwall design model will enable us to replicate our approach across our expansion footprint, ensur- ing the transfer of best practice project efficiency, cost control and risk mit- igation. We have also now received confirmation of our development rights from the Queensland government for the expansion of the Abbot Point coal port—a dedicated export facility that would have the capacity to accommo- date the growth from our Moranbah hub."
First development coal from Grosvenor is expected in 2013 and the commissioning of the longwall in 2016. Such project timings are contingent upon the receipt of the appropriate licenses and permits. Grosvenor has received approval of its Environmental Impact Statement, the project's Environmental Authority is in train and the key Mining Lease is anticipated During the first quarter of 2012.
The Queensland Government selected Preferred Respondents to negotiate development of the T4-9 Project at the Port of Abbot Point, located on the Central Queensland coast approximately 25 km northwest of Bowen. Queensland Premier Anna Bligh said following a call for Expressions of Interest by North Queensland Bulk Ports Corp. (NQBP) in mid-2011 for the development of additional coal terminals at the Port of Abbot, there was significant industry interest shown.
The Preferred Respondents include: Anglo American Metallurgical Coal, Macmines Austasia, North Queensland Coal Terminal (consortium of Macarthur Coal, Peabody Energy, New Hope Corporation, Middlemount Coal and Carabella Resources), Rio Tinto Coal, Vale and Waratah Coal. These companies will now progress to the next stage of contract negotiations for coal terminals at the port, Bligh said.
Bligh said NQBP is working closely with the mining industry and key stakeholders to plan for the future and the necessary port requirements for
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Anglo American Approves Grosvenor Met Coal Project in Australia
Australia's Abbott Point Plans for Future Expansion
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