Coal Age

DEC 2012

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news continued TOP 10 COAL-PRODUCING STATES W O R L D (in Thousand Short Tons) Week Ending (12/1/12) YTD '12 Wyoming 366,208 West Virginia 115,338 Kentucky 90,617 Pennsylvania 53,227 Illinois 39,968 Texas 36,394 Montana 33,974 Indiana 33,750 Colorado 28,044 Ohio 26,033 VISA Steel & SunCoke Energy Announce Indian Joint Venture VISA Steel Ltd. and SunCoke Energy have entered into agreements to form a coke-making joint venture in India. SunCoke Energy will invest approximately $67 million to acquire a 49% interest in the joint venture. VISA Steel will hold the remaining 51%. The joint venture includes VISA Steel's existing 400,000 metric ton per year (mtpy) heat recovery coke plant and associated steam generation units at Kalinganagar in Odisha, India. "This is a great opportunity for VISA Steel to partner with SunCoke, known for its operating and technological expertise, to grow the coke business," said Vishambhar Saran, chairman, VISA Steel. "The demand for coke from large and medium size steel producers has been increasing substantially and there is a potential to grow the coke business on a standalone basis." SunCoke Energy is the largest independent producer of metallurgical coke in the Americas, with 50 years of experience supplying coke to the integrated steel industry. Its advanced, heat recovery coke-making process produces high-quality coke, captures waste heat for derivative energy resale, and meets or exceeds environmental standards. The company has cokemaking facilities in the U.S. and Brazil. U.S. Total 940,164 YTD '11 400,235 124,157 100,558 55,078 34,831 42,512 38,679 34,422 24,814 25,799 % Change -8.5 -7.1 -9.9 -3.4 14.7 -14.4 -12.2 -2.0 13.0 0.9 1,005,323 -6.5 mine just days after Willow Lake was ordered shut by the federal Mine Safety and Health Administration following a November 18 fatality. The death of Chad Wayne Meyers, a continuous miner operator, was the second in just over two years at Willow Lake, which recorded the last two mine fatalities in Illinois. Another miner was killed in July 2010. Peabody blamed the closing, set to take place in January, on the mine's rising operating costs, not the fact the United Mine Workers of America successfully organized Willow Lake earlier this year and was negotiating a labor contract with the company. Southern Illinois politicians, concerned about the loss of 440 full-time jobs in an economically distressed region if Willow Lake closes for good, mounted an 11 th -hour effort to find another operator or buyer for the mine and its 25 million tons of reserves. Big Ridge Inc., a subsidiary of St. Louis-based Peabody, has operated the mine. State Representative Brandon Phelps, a Democrat from Saline County, said he and others were contacting coal companies around the country in hopes of locating a possible replacement for Peabody/Big Ridge. The UMWA, meanwhile, continued to negotiate with Peabody on behalf of nearly 30 hourly workers at the nearby Willow Lake prep plant. Union spokesman Phil Smith said the UMWA was surprised by the closing announcement, claiming the two sides appeared to be nearing a final labor agreement for Willow Lake miners. According to an Illinois mining official, Willow Lake's operating costs were being driven up in part by the increasing distances, and longer time, needed for miners to reach the working face. Signal Peak Lifts Force Majeure High quality bituminous coal was being produced and shipped again in November for the first time in weeks at Signal Peak Energy's longwall mine in Montana, and the company finally removed a force majeure, which has been in effect since September. Company spokesman Mike Dawson confirmed the mine was back in business following a laborious longwall move in early fall that placed a temporary crimp in the mine's production ramp-up to what eventually is expected to be more than 10 million tons annually. December 2012 N E W S ¸ ˛ ˝ ¸ Canadian Unions Oppose Permits for Chinese Coal Miners Two B.C. unions are seeking an injunction to block the Harper government's decision to issue permits allowing 201 Chinese nationals to take jobs in a proposed new coal mine in northeastern B.C., the Vancouver Sun reported. The application to the Federal Court of Canada comes amidst continued controversy over the disclosure that a group of companies, mostly Chinese owned, plan to bring close to 2,000 Chinese workers to four projects in B.C. to fill jobs they say Canadians aren't qualified to take. Union official Mark Olsen noted that the 201 workers are being brought in to take a bulk sample of coal at the HD Canadian Dehua's Murray River project near Tumbler Ridge. "We have members who can do that work and are available. If the mine then proceeds to the production stage and the owners bring in specific production equipment, it's a relatively simple matter to train for that equipment. This type of training is performed routinely by mining companies operating in Canada," he said. An official with the International Union of Operating Engineers Local 115, has sworn an affidavit to be filed that is asserts that his union has 474 unemployed people on its dispatch list, including 100 in northeastern B.C. Companies are required to prove to the federal government they tried to find workers in Canada before seeking permits under the Temporary Foreign Worker program. They must also pay a competitive wage. The federal government recently said it has launched an investigation into the issuance of the 201 permits. Ship Damages Coal Loading System at Westshore Terminals A large bulk carrier docking at Westshore Terminals in Vancouver, Canada, destroyed a coal conveyor system December 7, 2012, disabling the largest of the port's two berths, according to the Vancouver Sun. The mishap has put the berth out of service for an indefinite period of time and diminished the port's ability to export Continued on pg 10... 7

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