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July 2016 www.coalage.com 5 news continued Additionally, he said, Alpha will also immediately post $39 million in credit letters or cash bond assurances that it will perform its reclamation and water treatment obligations at other remaining self-bonded West Virginia sites. Of the total commitment, at least $229 million, $124 million or more will be earmarked for reclamation and water treatment over 10 years, and half of its excess operating cash flow over and above that amount will be held in the future for reclamation and water treatment at legacy locations. Contura has agreed to pro- vide the remainder of the funding, an additional $55 million, for both reclamation and water treatment over five years; it will also guaranty Alpha's excess operating cash flow commitment, up to an additional $50 million. Alpha also "donated" more than 53 million tons of reserves in Pennsylvania to a collection of environmental groups including the Sierra Club. The turnover is part of a settlement the producer agreed to with it and the West Virginia Highlands Conservancy, the Ohio Valley Environmental Coalition and Appalachian Mountain Advocates. The reserves in Westmoreland and Fayette counties in southwestern Pennsylvania were held by Alpha subsidiary Rostraver Energy Co., many lie primarily in the Upper Freeport seam. Alpha, which owns 2,400 acres of surface property above the reserves, will donate the first $2 million in proceeds from the sale of the land to the groups. These restoration projects will be implemented by new nonprofit Appalachian Headwaters, which the group said will keep it from ever being mined or burned. Al- pha, in return, will get a three-year deadline extension for its on- going Clean Water Act suit settlement between the environmen- talists and two of the company's mines. Additionally, the groups will not oppose the producer's Chapter 11 reorganization plan. Murray Threatens to Lay Off Thousands of Miners In early July, Murray Energy Corp. (MEC) issued potential layoff notices to its workforce in six states, stating that up to 4,400 min- ers — about 80% of its total front-line payroll — could be without a job by September. Officials did not indicate which specific mines could see cuts, or the number of impacted workers at each mine or state, but MEC issued the Worker Adjustment and Retraining Notification (WARN) Act notices July 1. w o r l d n e w s TerraCom Buys Blair Athol in Australia Mining newcomer TerraCom has signed a deal to acquire the Blair Athol operation in Queensland, Australia, from the Blair Athol Coal Joint Venture (BACJV) for A$1 (approximately US$0.80). The deal between TerraCom sub- sidiary Orion Mining and the joint venture was confirmed on July 4. Under sidiary Orion Mining and the joint venture was confirmed on July 4. Under its terms, it will receive A$80 million ($59.9 million) from the BACJV to meet the rehabilitation liability for Blair Athol, which is now managed by Rio Tinto since it halted mining there in November 2012. The mining lease Rio Tinto since it halted mining there in November 2012. The mining lease and licenses as well as land, contracts and mining plant and equipment, including a dragline, are all part of the sale, along with site infrastructure including a dragline, are all part of the sale, along with site infrastructure such as offices, workshops and stores. The acquisition is still pending ap- such as offices, workshops and stores. The acquisition is still pending ap- provals from the TerraCom board as well as each participant in the BACJV. provals from the TerraCom board as well as each participant in the BACJV. TerraCom aims to have the mine back in operation during the fourth quar- TerraCom aims to have the mine back in operation during the fourth quar- ter of this year at an annual rate of about 2 million metric tons (mt) using a staff of about 100. It will also rehab about 50 hectares (123.5 acres) of land in conjunction with the mine restart. Blair Athol is considered to of land in conjunction with the mine restart. Blair Athol is considered to be one of Queensland's oldest coal operations. TerraCom said it has been maintained in good condition since its closure. TerraCom was rebranded from its former identity, Guildford Coal, in October 2015. Bosnian Mine Explosion Injures 15 A coal mine blast on July 2 near Travnik in central Bosnia has reportedly in- A coal mine blast on July 2 near Travnik in central Bosnia has reportedly in- jured 15 workers, though officials still do not know the cause of the incident. jured 15 workers, though officials still do not know the cause of the incident. According to Reuters, none of the workers in the explosion at the Abid Lolic operation, which employs a total of 276, sustained life-threatening injuries. "The cause of the accident is still unknown," regional police spokes- man Rusmir Prohan told the news service, adding that an investigation by man Rusmir Prohan told the news service, adding that an investigation by mine inspectors and local authorities was forthcoming. mine inspectors and local authorities was forthcoming. Local media reported that the event could have been tied to methane, Local media reported that the event could have been tied to methane, as some workers were being treated for gas poisoning as well as burns. Abid Lolic produces coal for Bosnia's largest power generator, EPBiH. Anglo Sells Stake in Botswana's Only Coal Mine In its newest move toward a smaller portfolio, Anglo American division In its newest move toward a smaller portfolio, Anglo American division De Beers will reportedly sell its 50% interest in the Morupule operation, De Beers will reportedly sell its 50% interest in the Morupule operation, Botswana's only coal mine. Newly established Minerals Development Com- pany of Botswana (MDCB) CEO Paul Smith told Reuters recently that it will receive the stake. No financial details were released. Once complete, Bo- tswana's government will hold 100% interest in the mine near Palapye, as the other stakeholder in Morupule is Debswana Diamond Mining, in which it has a joint venture deal. The mine, which first commenced production in 1973, produces 3.2 million metric tons (mt) annually. Australia's Drayton Mine to Close in September Australia's Drayton Mine to Close in September Anglo American announced June 17 that its Drayton operation in the Hunt- Anglo American announced June 17 that its Drayton operation in the Hunt- er Valley of New South Wales, Australia, will cease operations by the end of September, taking with it 200 jobs. The impetus for the closure, the producer said, was a recommendation by the New South Wales Planning Assessment Commission late last year to reject the project. A small team will remain at the mine to oversee rehabilitation, though the company did not elaborate on further specifics or a timeline for that work. not elaborate on further specifics or a timeline for that work. "Anglo American is extremely disappointed that ceasing operations is required," officials said, adding that it will determine its further actions required," officials said, adding that it will determine its further actions required," officials said, adding that it will determine its further actions depending on the final outcome of the PAC process for the Drayton South depending on the final outcome of the PAC process for the Drayton South mine, which is pending approval. Coal Production to Rise in Russia Russia Energy Minister Alexander Novak recently said that whole-year coal production in the country for 2016 is projected to be 390 million metric tons production in the country for 2016 is projected to be 390 million metric tons (mt), an increase of 4.3%. The official told Russian news agency TASS that (mt), an increase of 4.3%. The official told Russian news agency TASS that Continued on p. 6... top 10 coal-producing states (in Thousand Short Tons) Week Ending (7/9/16) YTD '16 YTD '15 % Change Wyoming 137,363 193,250 -28.9 West Virginia 36,950 52,709 -29.9 Kentucky 22,508 33,981 -33.8 Illinois 22,031 31,380 -29.8 Pennsylvania 19,944 26,962 -26.0 Texas 16,419 15,596 5.3 Montana 15,360 21,708 -29.2 Indiana 13,855 18,824 -26.4 North Dakota 13,336 14,903 -10.5 New Mexico 8,515 9,305 -8.5 U.S. Total 343,651 471,709 -27.1