Coal Age

OCT 2015

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Blaschak Coal Corp. is expanding mining activities into two new locations in the anthracite coal measures of northeastern Pennsylvania. The addition of the two new locations means increased coal reserves for the company, additional capacity to produce run of mine coal at favorable stripping ratios and operat- i ng costs, and critical flexibility to optimize production for quality assurance and cost of production. Blaschak is one of the top anthracite producers in the U.S. and the company recently executed a long-term lease to mine a signifi- cant reserve in the Mount Carmel area of Columbia County, Pennsylvania. A Marion 7450 dragline will be moved to this loca- tion and the company plans to acquire a supporting fleet of equip- ment to move into full operation by the end of 2015. The second location is in the Eastern coal measures near H azleton. Blaschak is currently mining in this location with a Manitowoc 4600 dragline. First coal was produced in August. The additional capacity will permit the company flexibility in operations, giving Blaschak five active mining locations contain- ing high-quality reserves. The reserve additions are expected to add as much as 3 million tons of clean coal. The expansion coincides with release of a study suggesting that the carbon footprint of anthracite is smaller than that of traditional metallurgical coke. "The expanded mining operations reflect our strategic belief in the value of anthracite in existing and emerging market applications," said Greg Driscoll, president and CEO of Blaschak Coal Corp. "We're excited to increase our mining capacity, extending the environmental benefits afforded by our re-mining and reclamation, and providing confirmation of our belief that Pennsylvania anthracite has favorable environmental impacts when used in place of alternatives in domestic steelmaking." The study, prepared by Dr. Harold Schobert of Schobert International LLC, compared the carbon footprints of using tradi- tional metallurgical coke relative to using Pennsylvania-produced anthracite as a fuel and reducing agent in U. S. domestic steelmak- ing operations. The study confirmed that the use of Pennsylvania anthracite over metallurgical coke significantly reduces carbon dioxide emis- sions, thereby minimizing the amount of greenhouse gases emit- ted into the atmosphere. In fact, replacing coke with anthracite in a single electric arc furnace can reduce carbon dioxide by as much as 95,000 tons — the equivalent carbon footprint of 2,000 house- holds, or 11,000 motor vehicles. Blackhawk Mining Winner in Patriot Bankruptcy Auction In what ended up being a "robust and competitive" process, according to officials, Blackhawk Mining was the winner when the gavel fell on September 22 at the auction of Patriot Coal's remain- ing assets tied to its second bankruptcy filing in two years. The result is now awaiting approval by the court at Patriot's next case hearing on October 5. Should it be given the greenlight, it will help to solidify the infrastructure of the trouble miner's plans for its proposed Chapter 11 plan. Privately held Blackhawk was originally named the stalking horse bidder in the planned auction earlier this year. It already has Kentucky, Indiana and West Virginia operations, and the takeover n e w s 4 October 2015 B R E A K I N G N E W S TECO Closes Coal Division Sale Florida-based TECO Energy has officially divested itself from the coal industry with the close of its sale of TECO Coal LLC to Booth Energy's Cambrian Coal Corp. — with no money exchanged. TECO Energy will now focus only on its regulated electric and gas util- ity businesses. The sales closure was official on September 21; it was first announced last year. Under the deal, no upfront purchase payment was required. However, the company will receive future contingent consideration of $60 million should some coal benchmark prices reach outlined levels over the coming five years. TECO Energy will retain those liabilities related to its employees, including pensions and severance agreements. The company's coal arm was first classified as an asset held for sale during the third quarter of 2014. "TECO Coal was an important component of TECO Energy's business mix since the mid-1970s, contributing strong earnings and cash flow for many years," TECO Energy CEO John Ramil said. "We appreciate the ded- icated team members at TECO Coal and the contributions they have made to TECO Energy's success." An excavator loads a haul truck at Blaschak Coal's Lattimer mine. Blaschak Coal Expands Mining Activities

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