Coal Age

SEP 2018

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Page 11 of 53

8 September 2018 news continued Alcoa has asked the Indiana Supreme Court to overturn Warrick Superior Court Special Judge Carl Heldt's decision ear- lier this summer. Heldt ruled that Boonville had no authority to regulate Liberty's proposed expansion. However, the judge also upheld Boonville's moratorium on blasting within 1,000 feet of city utilities and infrastructure. While Alcoa is pursuing the Liberty project and has ap- pealed Heldt's decision, the company also continues to talk to the homeowners' group in hopes of reaching a mutually ac- ceptable settlement, a company official said in late August. Supreme Court appeals in Indiana typically take months to resolve, making a final ruling on Alcoa's appeal unlikely before the end of this year. White Stallion, owned by veteran Midwest coal operator Steve Chancellor, acquired Liberty's previous owner — Vigo Coal Inc. of Evansville — nearly two years ago along with Solar Sources Inc., another small Indiana coal producer. Gardner Withdraws OSM Nomination Steven Gardner has withdrawn his nomination to direct the Office of Surface Mining Reclamation and Enforcement (OSM). Gardner said the decision was a difficult one and one that comes after almost a year of back and forth with the Office of Government Ethics (OGE). He said the uncertainty of if and when confirmation would actually take place led him to make the decision to withdraw. "I feel I could have been of service and made a difference for the country, state governments served by OSM and an in- dustry that is still so vital to the country," Gardner said. "I have worked with OSM in many capacities for the 40 years it has been in existence. I have many friends in OSM, state govern- ments and knowledge of the program." Admitting he was saddened by the need to make this deci- sion, he said it was time for him to move on to refocus on his family and business. Coal Purchase Deals Pick Up in Ohio, Kentucky This Summer As fall approaches, major electric utilities in Kentucky and Ohio were in the process of locking in steam coal supplies for later this year and, in some cases, for 2019 and beyond as the domestic market continues to show signs of recovery. In August, Kentucky Power Co., a subsidiary of Columbus, Ohio-based American Electric Power Co., and East Kentucky Power Cooperative (EKPC) purchased 500,000 tons and 625,200 tons, respectively, of mostly barge coal from Central Appalachia and Northern Appalachia at prices ranging from $43.50/ton in the case of coal to be supplied EKPC by Murray Energy Corp.'s Con- solidation Coal Co., to $53/ton FOB barge for coal to be supplied Kentucky Power by Alpha Natural Resources' Mammoth mining complex in Kanawha and Fayette counties in West Virginia. Most of the EKPC coal will be delivered to its 1,371- megawatt Spurlock generating station near Maysville in Mason County, Kentucky, with a smaller amount earmarked for the Winchester-based generation and transmission co-op's 341-Cooper station near Somerset in Pulaski County, Kentucky. A signifi cantly larger coal purchase could be made this fall, most likely in September or October, by AEP off a formal so- grade coal, global tender for which will be fl oated within the next few weeks, a company offi cial said. This import shipment would be NTPC's fi rst import of fuel for its thermal power plants since the last three years, the offi cial added. Mongolia's Tavan Tolgoi Sees Coal Exports Increase 28% Revenue from Mongolia's Tavan Tolgoi coal mine surged in the fi rst half of the year due to higher commodity prices and a big jump in coal exports, the project's owner said on July 30, raising prospects for a planned overseas listing, according to Economic Times. De- velopment at Tavan Tolgoi, located in the Gobi desert, has been held back by fi nancing and infrastructure challenges, as well as political disputes over the role played by foreign investors in Mon- golia's economy. Gankhuyag Battulga, CEO of the state-owned Erdenes Ta- van Tolgoi JSC, said rising revenues and production could start the mine's expansion. The project exported 6.9 million metric tons (mt) of coal in the fi rst six months of the year, up 28% com- pared to the same period in 2017, while net profi ts increased 31% from the same period a year ago to reach 373.3 billion tugrik ($152 million). Doosan Drives First Pile for New Power Plant in Vietnam Construction has offi cially started on the $2.79 billion Nghi Son 2 thermal power plant in Vietnam by driving in the fi rst pile on August 27. Nghi Son 2 is a 1,330-megawatt (MW) thermal power plant being built by Doosan that is scheduled for completion in July 2022. The Nghi Son 2 Power Co. (NS2PC) is a joint venture between Marubeni in Japan and Korea Electric Power Corp. The plant is ex- pected to generate enough electricity to power 6.8 million four-per- son households in Vietnam. The construction of Nghi Son 2 will feature two separate high- tech, high-effi ciency 665-MW supercritical boilers, high-effi ciency turbines, and generating units. The two units will be constructed side-by-side, but operate independently to allow for greater fl exi- bility and effi ciency. Donkin Mine Will Transport Coal by Seagoing Vessel The yearslong debate on coal transportation by rail versus barge appears to have ended. Offi cials at the Donkin mine are pre- paring for geotechnical drilling, a fi rst step toward plans of building a marine terminal in Port Morien, according to the Cape Breton Post. "We would try to start construction as soon as possible," said Shannon Campbell, vice president of Donkin mine. "It would be ideal for us if we were able to ship coal out next year." The fi rst step will be to assess the seafl oor on the southern coast of the peninsula where the mine is located on Morien Bay. The facility would be located at the shore and secured to the seafl oor, he added. Campbell said the capital investment for rail would be north of $80 million. The company has submitted their new mine plan and are waiting for approval. The mine's growth at the end of 2018 will see production of 1 million metric tons (mt) of coal per year (mtpy). Campbell said they have approval to mine up to 3.6 million mtpy. Continued from p. 7...

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