Coal Age

MAY 2019

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4 May 2019 leading developments Paringa Delivers First Coal to Customers Paringa Resources Ltd. has delivered first coal from the Poplar Grove oper- ation in western Kentucky. A maiden shipment of approximately 1,500 tons was loaded into barges at Paringa's Ainsworth Dock on the Green River to Louisville Gas & Electric Co. (LG&E) and Kentucky Utilities (KU) on April 26. Coal is sold by Paringa on a free- on-board (FoB) basis, with the com- pany's customers responsible for the transportation of coal. The loaded product underwent sampling and analysis at the Ainsworth Dock and exceeded key contract specifications. "Commencing sales from the Poplar Grove operation is a key mile- stone for the company in becoming a significant coal producer in western Kentucky, USA," said Paringa Manag- ing Director Egan Antill. "The compa- ny remains focused on the successful ramp up of operations toward name- plate capacity throughout 2019." Sales volumes are anticipated to increase in the coming weeks as additional mining equipment is de- ployed. The second continuous miner has now been deployed. Additionally, the slope conveyor has been suc- cessfully commissioned and is trans- porting run of mine (RoM) coal from the slope bottom. Coal quality exceeded contract specifications, validating the coal preparation handling plant ramp-up performance, and sales volumes will continue to increase in the coming weeks as additional mining equip- ment is deployed. The company continues to build on a strong forward sales book and is sold out for 2019 and approximately 70% committed for 2020 with leading regional power utilities. Market condi- tions in the Illinois Basin remain strong, and the company is actively engaged with both existing and new customers regarding further sales agreements. Underground mining operations continue to progress well, with the slope development contractor demo- bilized from the site. The slope con- veyor was successfully installed and commissioned during the week of April 1, with RoM material now being transported from the mine faces to the transfer point at the slope portal. The permanent ventilation system has been established, and the second continuous miner has now been de- ployed. Installation and commissioning of the slope conveyor has enabled the underground and surface operations to be integrated. RoM material is now traveling up the slope conveyor to the slope portal and on the overland con- veyor, which then deposits it into the raw coal stockpile. The ramp up of the coal handling and preparation plant is progressing in line with expectations, with coal qualities to date having ex- ceeded key contract specifications. Queensland Approves Olive Downs Coking Coal Project Pembroke Resources reported that its Olive Downs coking coal project has been approved by Queensland's co- ordinator general and is expected to begin producing next year. Located 40 kilometers (km) southeast of Moran- bah in Queensland's Bowen Basin, a well-established coking coal area with existing infrastructure, the project is backed by its major shareholder, Den- ham Capital, a leading global energy and resources private equity firm. "This world-class project will have a production life of almost 80 years," Chairman and CEO Barry Tudor said. "There is no viable alternative to cok- ing coal in the primary steel produc- tion process for the foreseeable future, and Olive Downs will be a major sup- plier to the world's leading steel pro- ducers and as such, will be a valuable contributor to the Queensland and Australian economy for generations." Tudor also said Olive Downs will bring employment and other oppor- tunities to the state's regional com- munities. "Our focus is on workers living locally, including in the lo- cal economies of Moranbah, Nebo and Dysart, and hiring locally from The maiden shipment of coal from the Poplar Grove mine is loaded on to a barge at the Ainsworth Dock on the Green River in Kentucky.

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