Coal Age

JUL 2013

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news continued Christopher Walton, Rhino COO and senior vice president, said that while 2013 is seen as a tough year for the U.S. coal business, "We expect a higher level of cash flow in 2014 with the opening of our Pennyrile mine in western Kentucky." Rhino produced 942,000 tons of coal in the first quarter, down 25.2% from its 1.26 million-ton output in the same period last year. The biggest decrease came in Central Appalachia, where Rhino produced only 388,000 tons in the first quarter compared with 569,000 tons a year earlier—a 31.6% decline. Tenaska Pulls the Plug on Taylorville Energy Center Tenaska finally pulled the plug in June on a 602-mw coal gasification project for which the Omaha, Neb.-based independent power producer tried unsuccessfully for more than five years to win legislative approval in Illinois. In the end, the $3.5-billion Taylorville Energy Center proposed for Christian County died quietly. Tenaska gave it one last shot in early 2013 when Democratic State Sen. Andy Menar resurrected a bill from last year that would have authorized the Illinois Power Agency to purchase Taylorville's entire output at prices slightly above market. But Menar's measure, Senate Bill 2392, went nowhere before the General Assembly recessed for the summer and supporters reluctantly acknowledged the chances it would receive a favorable airing in the fall veto session in Springfield were not good. Taylorville enjoyed the enthusiastic backing of the Illinois Coal Association and other coal advocates as well as local officials in Christian County and central Illinois. It faced, however, a formidable group of opponents in the form of the STOP Coalition, led by politically powerful Exelon Corp., the parent company of Chicago-based Commonwealth Edison, and the Illinois Manufacturers' Association. They warned Taylorville would raise electricity costs for millions of residential, commercial and industrial customers. Exelon, the project's supporters claimed, also did not want another in-state competitor for Exelon's fleet of nuclear power plants. DATELI N E WASH I NGTON Running Right on Safety BY LUKE POPOVICH " ning to take shape," said Mine Safety and Health Administration Director Joe Main. NMA President and CEO Hal Quinn certainly saw the shift at the dedication ceremony in Julian. The evidence is not in last year's record low fatality numbers—a year when total U.S. mining employment was nearly at its zenith. The evidence, said Quinn, is also seen in facilities like Alpha's and in the industry's steady embrace of NMA's CORESafety initiative to drive continuous safety improvement. Both events signal change. "Like Running Right, CORESafety reflects a safety culture that is proactive, not reactive," said Quinn. "It anticipates what should be done to safeguard miners with a systematic approach that identifies safety challenges—then applies the appropriate resources and measures to meet them." Already the NMA has seen how companies are embracing continuous safety improvement procedures by adapting CORESafety modules— about 20 in all—to match conditions specific to their operations. Safety preparedness is key to preventing bad things from happening but also to ready if they do. This September 9-12, in Columbus, Ohio, the NMA will be the proud sponsor of an annual mine safety rescue competition (See News p. 20). It's all part of a renewed commitment to safety—now coming to a mine near you. Luke Popovich is a spokesperson for the National Mining Association, the industry's trade group based in Washington, D.C. Like Running Right, CORESafety reflects a safety culture that is proactive, not reactive.—NMA CEO Hal Quinn 16 www.coalage.com " It's rare enough to catch a glimpse of the future. And when you do, it can occur in the most unlikely place. So it was last month with the official opening of the Running Right Leadership Academy, Alpha Natural Resources' spanking new $23 million training center in Julian, W. Va. (See Alpha Academy, p. 24). Some in attendance came away with the feeling they were seeing not only a marvel of engineering, but a proud new day in American mining. To see it from a distance is to see the academy more clearly—it's really about the future of mining in America. In a striking way it gathers together the trends we have glimpsed throughout the industry. For example, the marriage of safety and communications technology to everyday production, the out-sized investments that companies are making to ensure that safe mines are productive mines and finally the emphasis on safety improvements not just as an end result but as a beginning objective. "This is a historic beginning for the future on mine safety, health and training," said Alpha's visionary Chairman and CEO, Kevin Crutchfield. "The success of our company and our industry starts with safety." Exactly. From a mine tragedy that took lives emerges one company's impressive commitment to save lives and an entire industry's commitment to build a culture of safety. Even regulators sense the new culture in mining. "I think there is a cultural shift that is begin- July 2013

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