Coal Age

JUN 2017

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Page 13 of 59

12 June 2017 news continued As recently as 2014, the two-mine Galatia complex produced about 11.2 million tons of high-sulfur steam coal for sale to re- gional electric utilities. Its output has fallen since. At the end of last year, AmCoal closed the New Era mine at Galatia after its economically mineable coal reserves played out. New Era produced 5.7 million tons in 2014 and 5.1 million tons in 2015 before it dropped off considerably to 1.7 million tons in 2016. The surviving mine, New Future, produced only 1.4 million tons in 2016 but already had turned out 1,148,328 tons in the first quarter of 2017 before it recently encountered "adverse mining conditions" that forced the company to reduce its scheduled op- erations and manpower at the mine," according to Murray Energy spokesman Gary Broadbent. "The American Coal Co. confirms that it has been forced to reduce its scheduled operations at its new Future mine, as a result of recently encountered adverse mining conditions," he said in a statement. "AmCoal is reviewing all of its current options with respect to this operation. Service to the American Coal Co.'s cus- tomers will not be interrupted." Murray Energy/AmCoal in May were believed to be talking with LG&E/KU about the possibility of fulfilling this year's con- tract terms by providing coal from the coal company's other oper- ations in the region, including KenAmerican Resources' Paradise No. 9 underground mine in western Kentucky and several Fore- sight Energy deep mines in southern Illinois. Like AmCoal, KenA- merican is a Murray Energy subsidiary. Murray Energy now owns a controlling stake in St. Louis-based Foresight, the largest coal producer in Illinois. Christopher Cline, Foresight's founder, resigned from the company's board of directors earlier this year but continues to own a 27% interest in Foresight, according to regulatory filings. Work Finally Begins at Rosebud Mining's Cresson Operation More than a decade after Pennsylvania regulators issued a final permit for the mine, work finally is under way on Rosebud Min- ing's long-delayed Cresson underground roof-and-pillar opera- tion in Cambria County that is expected to produce both metal- lurgical and steam coal from the Upper Freeport coal seam for a variety of markets. Rosebud, a privately owned coal company headquartered in Kittanning, Pennsylvania, has owned the Cresson reserve for less than two years. Amfire Mining, the original owner, was acquired by Rosebud for $86 million in December 2014. The Cresson permit was transferred from Amfire to Rosebud on September 29, 2015. In December 2006, the Pennsylvania Department of Environ- mental Protection (DEP) awarded the permit to Amfire covering 2,929.4 underground acres and 73 surface acres for water treat- ment facilities and other support activities. The mine's portal is expected to be located in Cresson Township in the south-central Pennsylvania county. In late May, Rosebud was constructing the surface facility for Cresson, according to DEP spokesman Neil Shader. Rosebud offi- cials have declined to comment publicly on the project. Cresson is not expected to begin producing coal until late this year at the earliest. Cresson is targeted to be one of the more important mines for Rosebud, which annually turns out about 7 million tons of coal from mines in Pennsylvania and neighboring Ohio. Other new met coal mines in Pennsylvania are being built by Corsa Coal and Robindale Energy. While the outlook for steam coal to fuel electric utility pow- er plants in the U.S. remains uncertain, global met coal prices were driven higher early this year when Cyclone Debbie struck Queensland, Australia, although they since have fallen. Nevertheless, owners of the new Pennsylvania met coal mines are eyeing foreign markets, particularly in Asia. Cresson is not the only new mine project on Rosebud's books. The Ohio Division of Mineral Resources Management awarded a permit to the company more than a year ago for the new Ginger Bend steam coal underground mine in Guernsey County. Ginger Bend is expected to produce at least 1 million tons of coal annually. Rosebud has not indicated publicly when it will begin to develop Ginger Bend. The company has two other new mine permits pending be - fore the Ohio agency. One is for the Stautner underground room- and-pillar mine in Morgan County. Rosebud just submitted the permit application on April 24. The other permit request is for the Carrollton Warrior under- ground room-and-pillar mine in Carroll County. Bluefield Coal Show Starts September 13 The Bluefield Coal Show is scheduled for September 13-15 at the Brushfork Armory-Civic Center sponsored by the Greater Blue- field Chamber of Commerce. The three-day event will feature a Anthony Webb has joined Cutlass Collieries as senior vice president of underground operations. Previous- ly, he was president of Mach Mining. Ellen Ewart has joined Coronado Coal as vice pres- ident of investor relations. Previously, she was vice president of research for Wood Mackenzie. Al Clayborne is the new regional director for the Mid-Continent Region of the U.S. Office of Surface Mining Reclamation and Enforcement . Arrow Material Services named Bill Henderson chief commercial offi- cer. Prior to joining Arrow, he held a variety of executive and mana- gerial positions with RJ Corman Railroad Group and with Ashland Inc. Humberto Gonzalez has joined Hawk Measurement as a sales director. Gonzalez has been in the instru- mentation and control world for more than 30 years with companies such as Milltronics, Magnetrol and Robert Shaw. Humberto Gonzalez m p e o p l e i n t h e n e w s Ellen Ewart

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