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12 www.coalage.com Janaury/February 2018 news continued On January 30, Alpha Natural Resources (ANR) announced outstanding safety performance for 2017, with four affiliate operations in West Virginia honored for safety achievements by the West Virginia Office of Miners' Health Safety and Training (WVMHS&T;) and the West Virginia Coal Association. The four Alpha affiliates received the Mountaineer Guardian Safe- ty Award, presented to selected mines and mining-related entities that meet strict safety criteria. It recognizes organizations with fatality-free operations, superior internal safety programs, cooperative teaming with authorities and minimal safety violations. In addition, inspectors with the West Virginia Office of Miners' Health Safety and Training may nominate mines and facilities for the awards. Republic Energy LLC's Workman Creek Surface Mine in Raleigh County has been honored with the Barton B. Lay, Jr. Milestones of Safety Award, one of only two operations to receive the WVMHS&T;'s most prestigious award. The following operations in West Virginia also received the Mountain- eer Guardian award: Underground Operations • Aracoma Coal Co. LLC, Cedar Grove No. 2 Mine • Kingston Mining Inc., Kingston No. 1 Mine Preparation Plants and Loadouts • Elk Run Coal Co. LLC, Chess Processing Plant Barton B Lay, Jr. Award – Milestones of Safety Award – Surface Mine • Republic Energy LLC, Workman Creek Surface Mine Three of the operations are multiple winners of the Mountaineer Guardian Safety Award with Cedar Grove No. 2 and Workman Creek hav- ing been honored two of the last three years. "We are proud of the accomplishments of all the employees at these operations and to see them recognized for their safety achievements with such prestigious awards," said Brian Keaton, Alpha's senior vice presi- dent of safety and health. All of these Alpha-affiliated operations received recognition at the Mountaineer Guardian Luncheon during the 45 th annual West Virginia Mining Symposium January 30 in Charleston, West Virginia. The West Vir- ginia Office of Miners' Health Safety and Training and the West Virginia Coal Association sponsor the awards to promote safety in West Virginia coal mines and facilities. % a w a r d s Alpha Natural Resources West Virginia Affiliates Receive Safety Recognition said Alpha CEO David Stetson. "We have invested in our people and our properties to create a company that can quickly adjust its production to match the coal markets." Stetson added that the company has lowered the costs of operating its mines since emerging from bankruptcy in July 2016. More than half of Alpha's metallurgical sales in 2018 will be sold under Alpha's multiyear arrangement to a counterparty for ultimate sale to third parties in the international market. The ma- jority of Alpha's thermal sales are too long-standing domestic util- ity customers with the remaining thermal production to be sold domestically or into the export market via spot sales. "We are already taking advantage of the strong international markets for our coal through additions of incremental production with minimal new capital investments," Stetson said. "If this mar- ket remains strong and stable, we can further flex and increase our metallurgical production beyond the guidance provided above by approximately 1 million tons on an annualized basis without incurring significant capex cost. We also have the ability to decrease production without having to absorb material fixed cost if this market changes." Stetson said a major transportation infrastructure project at Workman Creek is scheduled to be completed in the first quarter of 2018 and several mines were opened or expanded at the Marfork Complex in 2017. The transportation infrastructure project will decrease costs, and, combined with the new mines, allow the Marfork Complex to provide one-half of Alpha's incre- mental metallurgical production, he added. The capex projects that are completed or nearing completion have also enabled Alpha to begin preliminary development work on new under- ground and surface mines at the Marfork Complex with more than 35 million tons of high-quality metallurgical reserves asso- ciated with them. In addition to the investments at the Marfork Complex, Alpha deployed capital on the slope to the new Road Fork 52 mine at its Kepler Complex, which is expected to be completed in late 2018, allowing this mine to begin production in early 2019. The Road Fork 52 mine will extend the life of the Kepler Complex and provide additional mining capacity when it is fully operation- al in 2019. Alpha also announced it expects sales in the fourth quarter of 2017 to be 1.9 million tons of metallurgical coal and 1.7 million tons of thermal coal, and full-year 2017 sales of 7.9 million tons of metallurgical coal, including 1 million brokered tons, and 7 million tons of thermal coal. With the Lexington coal transaction closing in the fourth quarter of 2017, Alpha expects to incur a one- time loss of approximately $165 million. Knight Hawk Prepares for New Year Southern Illinois steam coal producer Knight Hawk Coal entered 2018 on an optimistic note, preparing to install a new coal-con- veyor belt at its flagship Prairie Eagle operation in Perry County. Assuming the Armstrong deal gets done soon — at least in the first quarter of the new year — Knight Hawk's total production could approach 9 million tons in 2018. The company added a unit shift in the fall at Prairie Eagle and moved to a new portal at the big underground mine. Currently, it is running nine unit shifts at Prairie Eagle, with a 10th likely a year or so from now. Carter said Knight Hawk's main project for 2018 is construct- ing the 4-mile-long, above-ground conveyor to hook up with the Prairie Eagle prep plant. Knight Hawk expects to be issued a per- mit from the Illinois Office of Mines and Minerals before the end of 2018 to extend its Blackhawk surface mine in Randolph County. In mid-December, Armstrong idled its active underground and surface mines in western Kentucky's Ohio and Muhlenberg counties because their high-sulfur steam coal was not needed during the Christmas holiday season. The move left more than 500 miners out of work.