Coal Age

JAN 2016

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Preliminary data released by the U.S. Mine Safety and Health Administration (MSHA) indicate that 28 miners died in 2015 in work-related accidents at the nation's mines, down from 45 in 2014. The figure represents the lowest number of mining deaths ever recorded and the first year that mining deaths dropped below 30. Coal mining accounted for 11 of the deaths occurred in coal mines. The leading causes were powered haulage and machin- ery accidents, which accounted for six deaths (see more details in Safety Report, p. 28). "While coal mine closures had some effect on the historic low number of mining deaths, actions by MSHA and the mining industry to improve mine safety have been a major factor," said Joseph Main, assistant secretary of labor for mine safety and health. He credited the agency's use of strategic enforcement tools, including special impact inspections that quickly address problem mines and the retooled pattern of violations procedure that targets mines with chronic violations, along with compliance assistance, training and outreach efforts to the mining industry. Arch Coal Files for Chapter 11 Bankruptcy Arch Coal, which has been fairly steadfast as the nation's No. 2 coal miner, confirmed January 11 that it has filed for Chapter 11 bankruptcy protection in an effort to eliminate about $4.5 bil- lion in years-old debt load. The St. Louis-based producer said that it has reached a deal with most of its lenders tied into its $1.9 billion first lien financing facility to restructure the debt, some of which it has carried since its 2011 takeover of International Coal Group (ICG). Arch, which missed a $90 million interest payment on its debt last month, further fueling talk of bankruptcy, has been one of the many miners weighted down by low coal prices, falling seaborne demand and increasingly strict environmental regulations. Arch said that it and "substantially all" of its wholly-owned subsidiaries in the U.S. filed voluntary petitions in the United States Bankruptcy Court for the Eastern District of Missouri. As it sifts through reorganization, officials said that mining operations and customer shipments will continue uninterrupted. "Today's announcement represents another significant step in our ongoing efforts to position the company for long-term success," Chairman and CEO John Eaves said. "After carefully evaluating our options, we determined that implementing these agreements through a court-supervised process represents the best way to solidify our financial position and strengthen our balance sheet. We are confident that this comprehensive finan- cial restructuring will further enhance Arch's position as a large- scale, low-cost operator." Eaves pointed out that the company has taken several steps to enhance operational efficiency and bolster its asset base in the time since the market downturn began. "As a result, all of our operating segments were cash flow positive during the first three quarters of 2015. We will continue to provide our cus- tomers with exceptional service as we move through this process, while maintaining and further reinforcing our position as an industry leader in safety, environmental stewardship and productivity," he said. n e w s 4 www.coalage.com January 2016 B R E A K I N G N E W S Rosebud Mining Idling Mines, Slicing Staff Pennsylvania-based private operator Rosebud Mining is reportedly putting most of its 20 Pennsylvania operations into a temporary idle and furloughing 429 workers, citing the unusually warm winter weather that has decreased coal demand. Vice President Jim Barker told local newspaper the Indiana Gazette that a few of its mines will remain open for maintenance projects, though he did not indicate which mines would close or remain open. The company's three Ohio operations will continue to produce. He said the company hopes to call the workers, which equate to about half of its total workforce, back sometime next month when stockpiles reduce. "We would expect, based on the guidance from our customers, to start shipping again by the end of the month [January] and bring everyone back in February," Barker told fellow regional paper the Tribune-Review. Rosebud, which has grown significantly over the last few years via acquisition activity, employs about 850. Some of its Pennsylvania operations include Beaver Valley, Barrett, Tracy Lynne, Knob Creek, Heilwood and Dutch Run. U.S. Mining Deaths Drop to New Lows in 2015 A comparison of year-to-date and total fatalities for metal/nonmetal and coal. (Graphic courtesy of MSHA)

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