Coal Age

APR 2019

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April 2019 13 u.s. news continued U.S. News Continued from Page 7 Sanders and Elizabeth Warren, who oppose the burning of coal because of its environmental impact. Lipari, based in London, Ken- tucky, began coal production in 2000 with the acquisition of B&W. American Resources Takes Delivery of Third Continuous Miner American Resources Corp. has deliv- ered an additional continuous min- er to its Mine No. 15, located in Pike County, Kentucky, to further expand the production of metallurgical coal. The Mine No. 15 is an underground mine located at the company's McCoy Elkhorn Coal complex and produces High Vol B metallurgical coal from the Glamorgan coal seam. American Resources currently utilizes two con- tinuous miners at two separate oper- ating sections within Mine No. 15. Due to the high demand for the metallurgical coal produced by this mine, and as part of its expansion plan, the company recently acquired one additional continuous miner and has another in the rebuild process to enhance the mine's production, ac- cording to American Resources Corp. This additional Joy 14CM15 model continuous miner that was acquired will be the third operating miner at Mine No. 15 and is expect- ed to have proximity-detection safety technology installed and producing within six weeks, the company said. This third continuous miner will be used to convert one of Mine No. 15's single-sections to a modified super section and then shortly thereafter to a full super section increasing the mine's total output by 6,000 (modified super section) and ultimately 12,000 tons per month (full super section). The company is rebuilding its fourth continuous miner that will bring both operating sections to full super sections at Mine No. 15 later this spring once it has been rebuilt and ful- ly rehabilitated. By mid-summer, with four operating miners on two super sections, Mine No. 15 is expected to produce 36,000 to 44,000 clean tons per month with an annual run rate revenue at such time of $40 million to $50 million. The company is also eval- uating the potential to add a third op- erating section to Mine No. 15 by the end of this year, which could represent a substantial increase in production beyond the current forecasts. "This is yet another stepping- stone in our growth plans," President Thomas Sauve said. "Having the abil- ity to not only bring new mines online cost effectively, but to also increase the efficiency and output of our cur- rently producing mines is core to our growth strategy under our low-cost operating model. We're excited to see our continued progress throughout the rest of the year and beyond." All production from Mine No. 15 is belted directly into one of the com- pany's two on-site coal processing facilities at McCoy Elkhorn Coal and loaded on to rail. The company said the enhanced production will give American Re- sources the ability to blend the coal with other metallurgical production at McCoy Elkhorn to offer its customers a High Vol metallurgical coal product. As a result of the increased tonnage, the fixed operating costs at the McCoy Elkhorn processing and load out com- plex will further be reduced on a per ton basis, providing further margin expansion, the company added. Sunrise Coal Gets Final Illinois Permit for Bulldog Mine Years after it initially filed the permit application, Hallador Energy's Sunrise Coal subsidiary finally has been issued a permit by the Illinois Office of Mines and Minerals for its proposed Bulldog underground thermal coal mine near Allerton in Vermilion County, said Ed Cross, a spokesman for the Illinois De- partment of Natural Resources. Cross said he was not aware of any additional regulatory approvals the Hallador Energy subsidiary needs for Bulldog, although it is believed the company still requires a water quality permit from the Illinois Environmen- tal Protection Agency. The Mines and Minerals permit was a long time coming. Sunrise orig- inally submitted its permit applica- tion for Bulldog to the agency on June 8, 2012. Last fall, Sunrise paid a fee of $9,737.50 and a down payment of $830,880 toward the bond of $5,486,900 set by the agency. The question now is whether Sun- rise plans to begin developing the room-and-pillar mine the company once said could produce as much as 3 million tons of steam coal annually for the U.S. electric utility market, or just sit on the permit indefinitely. For now, Sunrise isn't saying. Illinois Coal Association President Phil Gonet said he assumes that Sun- rise may proceed to develop Bulldog if it has a sales contract for the coal. Gon- Mine No. 15 at the McCoy Elkhorn Coal complex takes delivery of another continuous miner.

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