Coal Age

FEB 2012

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news continued supplier to Asia." CONSOL always has been a "very strong supplier to the Atlantic markets," he said. "The fastest growing commodity worldwide is coal, so that gives us a very strong leg up. Being the low- cost producer, we can distribute this cost at very high margins from our well-capitalized position in the United States." As he looked ahead to the remainder of 2012, William J. Lyons, CEO, principal accounting officer and executive vice president, CONSOL, said coal demand expectations are somewhat murky. Nevertheless, CONSOL is roughly about 90% contracted for the year. "That 6 million tons that is unsold—about 40% of that is tons that we will sell on a quarterly basis into Asia," he said. BMX is targeted to begin producing at the rate of 5 million tons a year in the first quarter of 2014. Of the $205 million CON- SOL has budgeted for mine upgrades this year, much of that is CALEN DAR OF EVENT S March 19-22, 2012 —will be held at the Westin Tabor Center in Denver, Colo. Contact: Colorado Mining Association (Tel: 303-575-9199; E-mail:; Web: www.colorado- April 16-21, 2012 —will be held in at the Washington County Fairgrounds in Abingdon, Va. Contact: CEDAR of Virginia (Web: May 1-3, 2012 —will be held at the Lexington Convention Center in Lexington, Ky. Contact: Penton Business Media (Tel: 800-927-5007; Fax: 508-759- 4552; E-mail:; Web: May 15-17, 2012 May 30-31, 2012 —will be held in Aachen, Germany. Contact: Mirjam Rosenkranz, RWTH Aachen University-Institute of Mining Engineering (Tel: 49-(0)241-80 95673; Fax: 49-(0)241-80 92272; E-mail:; Web: May 30-June 1, 2012 be held at the Harrah's in Reno, Nev. Contact: WMEA (Web: July 24-26, 2012 —will —will be held at the Lakeview Golf & Spa Resort in Morgantown, W.Va. Contact: Karen Centofanti (Tel: 304-293-3901; E-mail: or Karla Vaughan (Tel: 304-293-3886; E-mail:; Web: icgcm.conferencea- August 22-23, 2012 —will be held in Banff, Alberta, Canada. Contact: Debo Adams, IEA Clean Coal Center (Tel: 44 (0)20 8246 5268; E-mail:; Web: www.UCG.coalconfer- September 5-6, 2012 September 24-26, 2012 November 14-16, 2012 —will be held in Clearwater, Fla. Contact: Mining Electrical Maintenance Association (Web: www.miningelectri- —will be held at the Las Vegas Convention Center in Las Vegas, Nev. Contact: Hall-Erickson Inc. (Tel: 866-717-6463; E-mail: minex-; Web: — will be held at El Tropicano Hotel in San Antonio, Texas. Contact: WMEA (Web: 16 Judge Finds Cordero Rojo Discriminated Against Employee An administrative law judge (ALJ) with the Federal Mine Safety and Health Review Commission has ordered Cordero Mining of Gillette, Wyo., to pay a $40,000 civil penalty as well as reinstate an employee to her former position, provide compensation for lost wages and remove personnel files referencing the unlawful discharge. February 2012 —will be held at the Baltimore Convention Center in Baltimore, Md. Contact: The TradeFair Group (Tel: 832-242-1969; E-mail:; Web: expected to be spent on BMX. The BMX expansion project has a total price tag of about $500 million. Lyons said the good thing about BMX is that the mine "can be whatever we want it to be to go to the highest market possible. It can be 100% steam coal" if needed for the domestic market. Or, "it could go to export as a great thermal coal, or it can be accepted around the world as a high-vol crossover" coal. Potential markets for BMX, in Northern Appalachia, include Asian mills, European generators, Brazilian mills and domestic generators. Kinder Morgan, Arch Coal to Further Expand Coal Terminal Network Kinder Morgan Energy Partners announced plans to invest approxi- mately $140 million to further expand its coal handling facilities along the Gulf Coast. Concurrently, Arch Coal has signed a long-term throughput agreement with KMP that will help support the expansion of these export facilities. Also, Arch and KMP are in final discussions to include, in the throughput agreement, port space for coal ship- ments at KMP-owned facilities on the East Coast. Upon completion of the proposed terminal upgrades and subject to certain rail service agreements, Arch will ship coal at guaranteed mini- mum volume levels through KMP-owned terminals. The expansion of KMP's export facilities along the Gulf Coast and East Coast will provide incremental port capacity for Arch's growing seaborne coal volumes. "The demand for export coal continues to grow and we are pleased to offer Arch and other customers options in various markets through our multi-location terminal network," said Jeff Armstrong, president, Kinder Morgan Terminals. "We are also extending existing long-term coal agreements with Arch at our upriver terminals [Cora, Cahokia and Kellogg] in Illinois." "This strategic partnership with Kinder Morgan, a company with a proven track record of running successful terminal operations, will allow Arch to significantly increase our participation in the global coal market," said John W. Eaves, president and COO, Arch Coal. "This dedi- cated capacity directly underpins our long-term strategy to grow Arch's coal exports by fourfold in the next decade, and is consistent with our view that a global coal supply shortfall will persist over that time frame." Specific to the expansions on the Gulf Coast, KMP will install a new shiploader and a railcar loop track to handle three 135-car unit trains at its Deepwater terminal in Houston. Following completion of the pro- ject, the Deepwater terminal will have throughput capacity of 10 mil- lion tons of coal per year. The projects are expected to be completed during the second quarter of 2014. KMP's Deepwater and East Coast facilities offer dual rail access from Class 1 railroads, while International Marine Terminal (IMT) pro- vides barge access to the inland waterway system. The Deepwater ter- minal will be capable of handling panamax- and post panamax-size vessels, while one East Coast terminal and IMT will be capable of han- dling cape-size vessels. These multiple transportation options will allow Arch to unlock incremental value for its domestic coal produc- tion and coal reserves over the next 10 years. 114 th National Western Mining Conference & Exhibition 7 thAnnual Coal Fair Coal Prep 2012 14 thAnnual Electric Power Mechanics in Mining AIMS 2012 7 th International Symposium: Rockbolting and Rock Western Mining Electrical Association Bi-annual Meeting International Conference on Ground Control in Mining 31 st 2 nd Underground Coal Gasification Network Workshop MEMSA Annual Technical Symposium MINExpo Western Mining Electrical Association Bi-annual Meeting

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