Coal Age

JUL 2015

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n e w s c o n t i n u e d "We are excited about this unique 15-year partnership with our l argest customer," BRP Executive Chairman John Siegel said. Bowie h as also acquired 50 million tons of undeveloped reserves in the state from a PacifiCorp subsidiary. The location of the reserves, which are high heat and low sulfur, was not disclosed. Justice Reopens 2 Bluestone Mines About 200 miners are headed back to work in southern West Virginia thanks to the reopening of two operations by Bluestone Resources. According to the Associated Press, the company will open up the d oors to the Coal Mountain complex in Wyoming County and Red Fox in McDowell County. Though no timelines were outlined — offi- cials only said work would be done to recommence production as soon as possible — both mines have been idle for more than a year. The announcement comes just four months after Jim Justice con- firmed he had bought Bluestone Resources back from Mechel, a Russian coal miner and steelmaker. The Justice family initially sold it to the company in May 2009. The employees being called back are union miners, represented by the United Mine Workers of America (UMWA). "This is a great day for these families in the wake of all the devas- tation that has happened to the coal industry," Justice said. "I appreciate my relationship with all the hardworking people and officials of the UMWA. With all of the mine shutdowns and the terri- bly sad news, it's about time that we finally have some good news to report for our miners and their families." Sunrise Hopes to Expand Oaktown Complex A new permit application sought by Sunrise Coal Co. in Indiana is allowing the Hallador Energy Corp. subsidiary to pursue its goal of establishing a large, contiguous block of high-sulfur steam coal reserves under both Indiana and Illinois. The Indiana Department of Natural Resources' Division of Reclamation is expected to rule in early 2016 on the company's request to add 9,690.21 acres of underground acreage to its Oaktown No. 1 mine in Knox County. Sunrise acquired the Oaktown Nos. 1 and 2 deep mines along with the Prosperity underground mine near Petersburg in Pike County, Indiana, last year from Vectren Fuels Corp. for $296 million, with adjustments not to exceed $325 million. Prosperity was subsequently shut by Sunrise. Pete Sartoris, assistant director of the technical services section of the state agency, said in June he believes the permitted area sought by Sunrise would enable the company to tunnel beneath Indiana's portion of the Wabash River, which divides the two states. Sunrise, Indiana's second-largest coal producer behind Peabody Energy Corp., still would need regulatory approval in Illinois, how- ever, before completing the reserve connection. The Illinois Environmental Protection Agency (IEPA) plans to hold a public hearing in August on Sunrise's application for the pro- posed Bulldog underground mine in Vermilion County. The IEPA has issued a draft permit for the mine that would produce about 3 million tons of high-sulfur coal annually for 20 or more years. In addition to the Oaktown mines, Sunrise operates the Carlisle underground steam coal mine in Sullivan County, Indiana, and the Ace in the Hole steam coal surface mine in Clay County, Indiana. Sunrise is expected to produce close to 10 million tons of coal in 2015. Meanwhile, Sunrise is expected this summer to respond to an Illinois Department of Natural Resources (DNR) request for addi- while the tariffs set do not cover cost of thermal power production. DTEK's miners and power sector workers have been stretched to the limit trying to stabilize the operation of the United Energy System of Ukraine to prevent the repetition of rolling blackouts." "Unfortunately, only the current situation has made Ukraine r ealize that the development of the national energy sector is the only way to ensure the country's energy security and independence," said Timchenko. The processing of run-of-mine coal dropped by 45.2% to 4.7 million mt and, consequently, production of clean coal decreased by 50.2% to 2.8 million mt. The mines in the Donbass have decreased production by 83.8%, or 3.9 million mt. The mines are underutilized as the destroyed infrastructure in Donbass region constrains the delivery of all required materials and equipment for mining operations and ship- ping coal. About 2.45 million mt of coal remain stockpiled. MEC, E.ON Create Global Commodities Venture U.S. coal producer Murray Energy (MEC) and German-headquartered power group E.ON have come together to establish a new interna- tional company, Javelin Global Commodities Holdings, for marketing and trading commodities with a focus on coal and electric power. Javelin, which will be based in London, will expand into other com- modities outside of its main focus. It already has inked a long-term export marketing and domestic advisory agreement with MEC as well as a long-term hedging and credit line with E.ON. Chief Commercial Officer for Coal, LNG and Freight David Finch said the deal is a key step in its strategic vision and also a vehicle to continue to grow its presence in the U.S. coal and electric power markets. "We could not be off to a better start with such key players in the coal and other commodities markets supporting us," Javelin CEO Peter Bradley added. "The onset of shale gas production has changed the energy landscape in the U.S. and abroad, and we aim to provide services to clients to better manage their business in this dynamic environment." Churchill Mining and Indonesia in Talks to Settle Dispute London-listed Churchill Mining and the Indonesian government are holding talks aimed at reaching a settlement over a long-running dispute for one of the world's biggest coal reserves, according to Reuters. Churchill has been embroiled in an international arbitra- tion battle since 2012 with Indonesia over the licensing of the East Kalimantan coal project that is estimated by the firm to contain 2.73 billion metric tons (mt) of coal reserves. The case revolves around the disputed ownership of the 350 km 2 mine site in East Kutai, which the British miner said is worth around $1.5 billion. The source said that while talks were ongoing, the legal or arbi- tration route would continue. Churchill has spent more than $10 million on its legal bid after claiming that it had been unfairly stripped of its licenses and accused of fraud. Continued from p. 6... ˛ 8 www.coalage.com July 2015

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