Coal Age

OCT 2018

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Page 5 of 51

4 October 2018 news Bowie Becomes Wolverine, Moves to Utah b r e a k i n g n e w s Mission Coal Files for Chapter 11 Mission Coal, which was formed in January by combining Seneca Coal Resources and Seminole Coal Resources, filed for Chapter 11 bankrupt- cy protection with the U.S. Bankruptcy Court for the Northern District of Alabama at the beginning of October. Altogether, Mission Coal operated two deep mines and one surface mine in West Virginia and one deep mine in Alabama with varying qualities of metallurgical-grade coal. Mission Coal was expecting to produce 6.5 million tons of coal in 2018. The company lowered its 2018 forecast to 4.5 million tons due to transportation issues and adverse mining conditions. At the end of September, however, the company reportedly had only mined 2.1 million tons. According to the filing, Mission Coal owes more than $32 mil- lion to 50 creditors. The largest claims include more than $9.7 million to United Mine Workers of America members' pensions and benefits trustees, $4.9 million and $4 million to Michael Hollard and Bluestone Coal, respectively, related to litigation. The company also owes $3.2 million to Natural Resource Partners, $2.1 million to Carter Machinery and nearly $2 million to Alabama Power. U.S. bituminous coal operator Bowie Resource Partners moved its corporate headquarters from Grand Junction, Colorado, to Sandy, Utah, and has changed its name to Wolverine Fuels LLC. Wolver- ine will continue to operate the Sufco, Skyline and Dugout Can- yon mines in Utah and the idled Bowie No. 2 mine in Colorado, and will also maintain a small regional office in Grand Junction. "We are primarily a Utah company, employing Utah citizens and supplying coal to Utah power plants, so it only makes sense that we have our headquarters in Utah," said James Grech, Wol- verine's CEO, who was recently appointed in July. "This move will allow the executive team to be closer to our mines, our workforce and our customers," Grech said. "I want to thank everyone in Utah who encouraged and assisted us with this relocation, espe- cially Governor Herbert's office and Sen. David Hinkins." "The Utah economy benefits from low cost, sustainable elec- tricity, generated by its many diverse resources, including the coal-fired power plants located in the state," said Laura Nelson, the governor's energy advisor and executive director of the Gov- ernor's Office of Energy Development. "The Wolverine mines are key suppliers to those plants, providing jobs and energy security locally, regionally and globally." Sen. Hinkins added, "The Wolverine mines have an enor- mous economic impact in Emery, Carbon, Sevier and Sanpete counties, and I was honored to assist Jim Grech and his team with the move." "In conjunction with the recent management changes and re- capitalization of the company, we wanted to offer our employees a fresh start and new identity with the name change," Grech said. "Our workforce is tough and resilient, very much like a wolverine, so we think our new namesake will resonate very well with our employees and the communities in which we operate." Peabody Will Acquire Shoal Creek Mine Peabody Energy has signed a definitive agreement to purchase the Shoal Creek metallurgical coal mine located on the Black War- rior River in Alabama from private coal producer Drummond Co. Inc. for $400 million. Shoal Creek serves Asian and European steel mills with high-vol A coking coal. Peabody will purchase the mine, prep plant and supporting assets. The agreement excludes legacy liabilities other than recla- mation. The transaction is expected to close before the end of 2018. "Peabody has consistently outlined our intention to upgrade our metallurgical coal platform and make strategic investments using a strict set of filters," said Peabody President and CEO Glenn Kellow. "We believe the purchase of the well-capitalized and high-quality Shoal Creek mine meets these filters, offers major logistical advan- tages and represents an opportunity to create significant value." Shoal Creek represents the next phase of Peabody's initiative to upgrade its metallurgical coal platform, adding approximate- ly 2 million tons per year (tpy) of high-quality hard coking coal sales, the company said. The mine is strategically positioned with direct access to barge transportation, eliminating trucking or rail requirements. The mine accesses seaborne markets through the McDuffie Terminal in Mobile with substantial available capacity. Shoal Creek employs 400 and uses longwall mining technol- ogy to mine both the Blue Creek and Mary Lee coal seams. The current mine plan accesses 17 million tons of reserves. In 2017, the mine sold 2.1 million tons. Westmoreland Files for Bankruptcy On Tuesday, October 9, Westmoreland Coal Co. said it had entered into a restructuring support agreement (RSA) with members of an ad hoc group that hold approximately 76.1% of the company's

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