Coal Age

FEB 2013

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u.s. longwall census continued 60% capacity utilization rate. The second belt was repaired in late September, so the fourth quarter began with the entire complex running normally. In early September, the company also idled the Buchanan mine for 60 days. The operations is now running again as planned and the first of two phases of the Horn Mountain Portal project have been completed. This portal is strategically located at the mouth of the future 5 North reserves. It���s also 1.5 miles closer to Buchanan���s current face. The Shoemaker mine set a new production record of 5.3 million tons during 2012. A major sealing project was completed at the Loveridge mine, which has increased safety and decreased risk by reducing the active footprint of the mine by approximately three square miles. In Central Appalachia, Patriot Coal filed for Chapter 11 bankruptcy reorganization. The company decided to idle several operations due to market conditions, but its longwalls were unaffected. Arch Coal is investing $100 million during 2013 to complete the Leer metallurgical mine. In the southern U.S., Walter Energy has also shown significant safety improvements. The company reported that, on a consolidated basis, its total reportable injury rate had decreased by 22% compared with 2011. In the western U.S., Peabody Energy���s Twentymile mine in Colorado produced nearly 1 million fewer tons in the fourth quarter compared to last year but remained the highest-producing longwall mine in the region. Peabody���s new Sage Creek project, which is part of the Twentymile operation, produced a small amount of coal in 2012, as it moves toward development. Arch Coal���s Sufco mine completed a longwall move during the fourth quarter. The longwall at Arch Coal���s Skyline mine resumed operation in late October, while the longwall at Dugout Canyon was idled after completing its final panel in the Gilson seam. Dugout Canyon resumed production in 2012 after it was idled in late 2011 due to weak market conditions. Oxbow Group���s Elk Creek mine, is finally seeing production improve as the mine worked to improve its ventilation system. Blue Mountain Energy is seeking access to federal coal reserves to increase its reserves. February 2013 Table 2���Longwall Coal Production (2011-2012). U.S. Longwall Mines Prod. 2012 Prod. 2011 % Change CONSOL Energy Bailey 10,122,862 10,833,141 -6.6% CONSOL Energy Enlow Fork 9,459,485 10,190,255 -7.2% CONSOL Energy McElroy 9,400,485 9,253,481 1.6% American Energy Corp. Century Mine 8,446,709 7,080,629 19.3% Peabody Energy Twentymile 7,974,732 7,748,909 2.9% Foresight Energy Mach Mining 7,528,061 7,226,500 4.2% Arch Coal West Elk 6,852,136 5,896,402 16.2% Alpha Natural Resources Cumberland 6,425,363 6,185,076 3.9% CONSOL Energy Loveridge 5,869,454 5,638,973 4.1% Ohio Valley Coal Powhatan No. 6 5,767,737 6,415,744 -10.1% Signal Peak Energy Bull Mountain Mine 5,707,633 5,135,570 11.1% Arch Coal Sufco No. 1 5,650,446 6,498,011 -13.0% AmCoal New Era 5,641,788 4,963,211 13.7% CONSOL Energy Shoemaker 5,316,374 5,148,574 3.3% CONSOL Energy Robinson Run No. 95 4,992,046 5,958,158 -16.2% BHP Billiton San Juan South 4,960,375 3,983,025 24.5% Walter Energy Blue Creek No. 7 4,764,268 3,610,246 32.0% Foresight Energy Sugar Camp 4,690,260 855,868 448.0% Pacific Minerals Bridger 4,636,557 3,043,110 52.4% Alpha Natural Resources Emerald No. 1 4,384,253 3,713,206 18.1% Patriot Coal Federal No. 2 4,044,937 3,744,764 8.0% AmCoal New Future 3,642,169 1,783,046 104.3% CONSOL Energy Buchanan 3,506,216 5,654,353 -38.0% Bowie Resources Bowie Mines No. 2 3,430,291 2,235,055 53.5% Energy West Mining Deer Creek 3,294,734 3,142,701 4.8% CONSOL Energy Blacksville No. 2 3,231,148 4,341,984 -25.6% Oxbow Mining Elk Creek 2,958,014 3,007,833 -1.7% Arch Coal Mountaineer II 2,543,761 3,291,560 -22.7% Cliffs Resources Pinnacle No. 50 2,432,878 1,165,799 108.7% UtahAmerican Energy West Ridge 2,409,444 3,565,890 -32.4% Foresight Energy Deer Run 2,365,356 491,227 381.5% Alliance Resource Partners Mountain View 2,284,548 2,317,564 -1.4% Patriot Coal American Eagle Mine 2,266,211 1,842,978 23.0% Walter Energy North River No. 1 2,249,233 2,707,383 -16.9% Cliffs Resources Oak Grove 2,206,797 526,267 319.3% Alliance Resource Partners Tunnel Ridge 2,000,531 275,227 626.9% Walter Energy Blue Creek No. 4 1,903,381 2,122,806 -10.3% Arch Coal Skyline 1,894,468 2,948,091 -35.7% Blue Mountain Energy Deserado 1,673,461 1,983,581 -15.6% Arch Coal Dugout Canyon 1,515,652 2,395,020 -36.7% Drummond Co. Inc. Shoal Creek 1,286,573 1,760,870 -26.9% Alpha Natural Resources Revolution 752,978 364,839 106.3% Source: Mine Safety and Health Administration. www.coalage.com 25

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