Coal Age

JAN 2016

Coal Age Magazine - For more than 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/629433

Contents of this Issue

Navigation

Page 11 of 51

n e w s c o n t i n u e d 10 www.coalage.com January 2016 2017 and 2018, where we have committed pricing, the pricing is in steady contango. For the sold tons that are not priced in 2017 and 2018, our agreements are structured so that CONSOL will realize increases as natural gas prices improve and the new market realities begin to bring coal supply and demand into equilibrium." CONSOL Energy reaffirmed its previous estimated price range across the entire coal division for committed and priced tons in 2016 of $50/ton to $55/ton. Illinois Expects Higher Coal Production in 2015 The Illinois coal industry entered 2016 hoping to at least main- tain the surprising results of 2015 when its steam coal produc- tion managed a slight uptick in the teeth of one of the most challenging years for U.S. coal overall in decades. When the official/final production numbers are in early this year, they are expected to show Illinois extracted about 60 mil- lion tons of coal in 2015, eclipsing its output of 58 million tons in 2014, according to Phil Gonet, president of the Illinois Coal Association. Gonet does not know what the new year will bring, either in the way of fresh opportunities or obstacles for Illinois coal, so he is not making any predictions for 2016. But he and others point to several optimistic developments that could bode well for the state's coal output this year. Foremost, perhaps, is the continued production ramp-up at the relatively new Hamilton No. 1 longwall mine, formerly known as White Oak No. 1, near McLeansboro in southern Illinois' Hamilton County. The mine is now operated by Hamilton County Coal LLC, a subsidiary of Alliance Resource Partners of Tulsa, Oklahoma. After financing much of the mine's development in the past couple of years, Alliance acquired the operation in 2015 from privately owned White Oak Resources LLC. Since then, the mine's production has continued to climb, to more than 4 million tons of high-sulfur coal from the Herrin No. 6 seam through the first three quarters of 2015, leaving it on pace to surpass 5 million tons for the entire year. That com- pared to its 2014 output of only 1.7 million tons. M o r e o v e r , t h e H a m i l t o n c o m p l e x h a s r o o m t o e x p a n d . W h i t e O a k R e s o u r c e s o n c e t a l k e d o f d e v e l o p i n g m u l t i p l e underground mines in the area. The mine also is a low-cost operation, which should keep it high on the priority list of Alliance, which has curtailed operations at a couple of older, higher-cost Illinois Basin mines. Sunrise Coal Co., a Hallador Energy subsidiary and new- comer to Illinois, is expected in early 2016 to receive a final p e r m i t d e c i s i o n f r o m t h e I l l i n o i s D e p a r t m e n t o f N a t u r a l R e s o u r c e s f o r i t s p r o p o s e d B u l l d o g u n d e r g r o u n d m i n e i n Vermilion County. Bulldog would produce about 3 million tons of steam coal annually, although mining probably would not commence until 2017. Foresight Energy Partners could get its idled Deer Run long- wall mine near Hillsboro in Montgomery County back in opera- tion in early 2016. The mine, which produced 5.5 million tons in 2014, was shuttered for much of 2015 because of elevated levels of carbon monoxide. Deer Run contributed only about 1.7 million tons to Illinois' coal production in 2015. On the downside, however, is the Galatia underground min- ing complex in Saline County owned by Ohio-based Murray Energy Corp. In late 2015, the company's American Coal sub- sidiary began transitioning production from the New Era mine to the New Future mine. The two mines turned out more than 11 million tons just two years ago, but New Future's output is expected to be considerably less than that in 2016. Coyote Coal Plant is Fully Operational It took longer than a year, but Otter Tail Power Co.'s 450- megawatt (MW) Coyote coal-burning power plant in North Dakota finally is back in full operation again after a serious mechanical failure and fire on December 4, 2014. P E O P L E I N T H E N E W S Foresight Energy LP appointed Paul H. Vining as a new member of the board of directors. Vining is currently the CEO of Cline Group LLC, as well as president of Foresight Reserves LP and CEO of Cutlass Collieries LLC. Former International Coal Group and Arch Coal executive Charles Snavely has been appointed by new Kentucky Gov. Matt Bevin to serve as secretary of the state's Energy and Environmental Cabinet. Snavely was most recently president of operation for Arch before retiring in January 2014. Prior to that he was executive vice president of mining operations for ICG. Snavely replaces Dr. Len Peters, who was appointed by former Gov. Steve Beshear in 2008. SUEK Siberian Coal and Energy Co. named G. Michael Meighen as global head of health, safety and environmental programs. Previously, he was the director of HSES Americas and Kazakhstan Coal for ArcelorMittal. BKT USA has added three regional sales managers. Blaine Koller is the new regional sales manager handling BKT's Northwest territory. Koller is based in BKT's Fairlawn, Ohio, office. He was most recently sales manager for the western coast of British Columbia. Gary Pompa and Peter Row have both been added as OTR regional sales man- agers based in BKT's office in Brentwood, Tennessee. Pompa brings more than 25 years of experience in the tire industry, including having managed GCR Tires, Pomp's Tire, and working in sales for Wingfoot Tire and Northern Tire. Row brings more than 17 years of experience. Motion Industries announced several key changes. Randy Breaux assumed the posi- tion of senior vice president of marketing, distribution and purchasing. Breaux joined Motion Industries in 2011 as senior vice president, marketing. Tony Cefalu was named senior vice president of hose and rubber, shops and service centers. Kevin Storer was named senior vice presi- dent of U.S. operations, president of Motion Industries- Mexico. m Kevin Storer Randy Breaux Tony Cefalu P aul Vining G. Michael Meighen Charles Snavely

Articles in this issue

Links on this page

Archives of this issue

view archives of Coal Age - JAN 2016