Coal Age Magazine - For nearly 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/82345
1990-1999 Major U.S. Coal Producers, 1995 (millions of tons) Peabody Holding Cyprus Amax Minerals Co. CONSOL Coal Group Arco Coal Kennecott Energy Zeigler Coal Holding Kerr-McGee Coal Group A.T. Massey North American Coal Arch Mineral Corp. 143.7 76.0 71.5 45.6 38.5 35.1 31.1 28.7 27.0 26.7 During the summer of 1998, Lehman Merchant Banking Partners purchased the Peabody Group for $2.3 billion. The transac- tion was part of the sale of Hanson's Energy Group to Texas Utilities. Peabody becomes an independent company again. During August 1998, AEI Resources buys Zeigler Coal Holding in a deal valued at $849 million. Zeigler is the second largest pub- licly-traded coal company with assets in the PRB, ILB and CAPP. AEI is a private compa- ny owned by the Addington family (Addington Enterprises Inc.), with assets pri- marily in the East. Chevron announced its intention to sell the Pittsburg & Midway Coal Mining Co. (P&M;). P&M; owned five coal mines in four states and had a one-third partner- ship in the Black Beauty Coal Co. in Indiana. Peabody eventually purchases P&M;'s share of Black Beauty for $150 mil- lion bringing its total stake in the compa- ny to 81.7%. In February 1999, Peabody Group merges the North Antelope and Rochelle mines creating the largest U.S. coal min- ing complex. The North Antelope- Rochelle complex had a combined output of 64.7 million tons in 1998. Peabody's Powder River Basin Coal, which also oper- ated the Caballo and Rawhide mines, pro- duces 96 million tons in 1998. Also in February 1999, Vulcan Coal Holding bought Triton Coal from AEI Resources for $275 million. Included in the transaction were the Buckskin and North Rochelle mines, which have a combined capacity of 30 million tpy. Vulcan Coal Holding is headquartered in Zeigler's old office in Fairview Heights, Ill. In mid-May, German coal and energy conglomerate Ruhrkole AG (RAG) pur- chased Cyprus Amax for $1.1 billion. CONSOL Energy goes public trading under the ticker symbol CNX. Railroads Struggle to Keep Pace In July 1994, railroad executives hold a sum- mit to discuss haulage problems in the PRB. Chief executives of the three major carriers, Burlington Northern, Chicago & North Western and Union Pacific, meet in Omaha to discuss the topic of chronic delays. They agree on a comprehensive plan, which included millions of dollars in track improvements and expansions, to relieve the situation. In addition to allocating more managerial staff in the field, the railroads agree to make improvements and plan for better maintenance schedules. BN will add 20 miles of double track on the joint line and the railroads agree to share the $24 million cost. An estimated 230 million tons of coal will be mined in the PRB this year and pro- duction is expected to increase 3% to 5% for the next few years. 162 www.coalage.com 100th Anniversary Special Issue August 2012