Alpha Coal Handbook 2
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201 2 2 Alpha Coal Handbook Alpha Coal Handbook A reference guide for coal, ironmaking, electricity generation, and emissions control technologies. 2012 Edition Forward-Looking Statements Statements in this document which are not statements of historical fact are “forward-looking statements” within the Safe Harbor provision of the Private Securities Litigation Reform Act of 1995. Such statements are not guarantees of future per- formance. Many factors could cause our actual results, performance or achievements, or industry results to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements. Who Is Alpha? These factors are discussed in detail in our filings with the SEC. We make forward-looking statements based on currently available information, and we assume no obligation to update the statements made herein due to changes in underlying Alpha Natural Resources is one of the world’s premier coal suppliers factors, new information, future developments, or otherwise, except as required by law. with coal production capacity of greater than 120 million tons a Third Party Information This document, including certain forward-looking statements herein, includes information obtained from third party year. Alpha is the United States’ leading supplier of metallurgical sources that we believe to be reliable. However, we have not independently verified this third party information and cannot coal used in the steelmaking process and third-largest in the world. assure you of its accuracy or completeness. While we are not aware of any misstatements regarding any third party data contained in this document, such data involve risks and uncertainties and are subject to change based on various factors, Alpha is also a major supplier of thermal coal to electric utilities including those discussed in detail in our filings with the SEC. We assume no obligation to revise or update this third party information to reflect future events or circumstances. and manufacturing industries across the country. The Company, through its affiliates, operates mines and coal preparation facilities Definitions and Descriptions The definitions, descriptions, formulas and other data used in, or referenced by, this document are not binding for purpos- in Appalachia and the Powder River Basin. More information about es of interpreting any other document, including without limitation agreements to which Alpha Natural Resources, Inc. or any of its affiliates is a party. Neither Alpha Natural Resources, Inc. nor any of its affiliates is responsible for any liabilities Alpha can be found on the Company’s website at www.alphanr.com. arising from a reliance upon the data in this document. Design: McKenna Daniels Design Go to Contents About Alpha About Alpha Our Purpose What is RUNNING RIGHT ? We fuel progress around the world. Running Right is an important piece of our culture, a part of who we are and how we operate. At Alpha, we believe every employee should have a seat at the table and participate actively in all aspects of our business. Our Values We conduct our business safely, ethically, honestly and with integrity at all times. Embedded within Running Right is a robust observation process that relies on participation from each and every employee to conduct observations. We care. Caring for one another helps us all return to our families safe and All employees are encouraged to cite safe behaviors, at-risk behaviors and healthy. operational improvements every day in order to improve the safety, efficiency, and productivity of all of our locations in Alpha. We treat each other how we want to be treated. Safe and at-risk behaviors are part of Alpha’s behavior-based safety approach. We trust our people and work together as a team. All employees have an The reason why we focus so much on at-risk behavior is that research has shown opportunity to contribute their ideas and share in our success. that 88 percent of workplace accidents can be attributed to at-risk behavior. At-risk behavior is often the precursor to workplace accidents. We communicate openly, build on what we know and learn, and make informed decisions to keep us ahead of the competition. Observations are reviewed daily. In many cases action can be taken right away and employees are encouraged to take action when observations occur. We embrace change, continuously improving ourselves and our business. Running Right is a big part of who we are and what we do and employee involvement and engagement are the keys to Running Right at Alpha. “We fuel progress around the world...and we do this through the energy of our people.” ReturnGo to Contents to Contents About Alpha About Alpha History In July 2009, Alpha consummated its largest business venture to date by completing a merger with Foundation Coal Holdings Inc. The Alpha-Founda- Alpha was formed in 2002 by members of management and by affiliates of First tion merger resulted in the third-largest coal company in America. Reserve Corporation, a private equity firm. In June 2011, Alpha acquired Massey Energy Company in a $7.7 billion We acquired the majority of the Virginia coal operations of Pittston Coal Company, transaction. The acquisition brought together highly complementary assets, which a subsidiary of The Brink’s Company, in December 2002. included more than 150 mines and combined coal reserves of approximately 5 billion tons, including one of the world’s largest and highest-quality metallurgical On January 31, 2003, we acquired Coastal Coal Company, and on March 11, 2003, coal reserve bases. we acquired the U.S. coal production and marketing operations of American Metals and Coal International. In November of that year, we acquired Mears Enterprises, Inc. and affiliated entities. U.S. Leader in Metallurgical Exports Alpha Natural Resources is the largest exporter of metallurgical coal in the United In April of the following year, we acquired substantially all of the assets of States. In 2011, metallurgical export shipments exceeded 14 million tons and we Moravian Run Reclamation Co., Inc., including four active surface mines and two expect to see growth going forward. additional surface mines under development, operating in close proximity to and serving many of the same customers as our AMFIRE business unit located in Alpha ships export coal on the East Coast through Norfolk Southern’s Lamberts Pennsylvania. That May, we acquired a coal preparation plant and railroad loading Point facility in Norfolk, VA; through Dominion Terminal Associates (DTA) in facility located in Portage, Pennsylvania and related equipment and coal inventory Newport News, VA; through Pier IX Terminal in Newport News, VA; and through from Cooney Bros. Coal Company and an adjacent coal refuse disposal site from a CSX Chesapeake Bay piers located in Baltimore, MD. Coal is also moved through Cooney family trust. United Bulk Terminal and International Marine Terminals, both located in New Orleans, LA. In October 2005 Alpha acquired the Nicewonder Coal Group including their three surface mines and a road construction and coal recovery business in southwestern Virginia and southern West Virginia. International Sales and Development Offices In 2010, Alpha opened a European sales office in Lugano, Switzerland. In early In May 2006, Alpha completed the acquisition of certain coal mining operations 2011, Alpha opened two international sales and development offices: one in New in eastern Kentucky from Progress Fuels Corp. Collectively the acquired Delhi, India and one in Sydney, Australia. Each office is focused on increasing businesses controlled 73 million tons of coal reserves. In December of that year, Alpha’s sales of coal to high-growth markets through our existing export platform, an Alpha subsidiary, Palladian Lime LLC, acquired a 94% ownership interest in as well as unique optimization opportunities. Both offices also serve to further Gallatin Materials LLC, a start-up lime manufacturing business in Verona, Ky. That develop and enhance trading opportunities, market intelligence, and strategic interest was subsequently sold in October 2008. relationships in the Asian markets. In June 2008, Alpha acquired the Mingo Logan-Ben Creek coal mining assets in West Virginia from Arch Coal Inc. Mingo Logan consists of coal reserves, one deep mine and a load-out and coal processing plant. Go to Contents About Alpha About Alpha Alpha Shipping and Chartering, LLC Alpha Natural Resources U.S. Locations Alpha Shipping and Chartering, LLC, a subsidiary of Alpha Natural Resources, was formed in 2010 to provide ocean shipping services for overseas customers. Alpha is the disponent owner of two Panamax Gearless Bulk Carriers available to Alpha Coal West 2 Surface Mines transport coal or other dry bulk commodities worldwide. WY Export Capacity Pennsylvania Services Alpha’s total export capacity from all U.S. terminals is approximately 25-30 million 2 Deep Mines tons per year via multiple ports and terminals that provide unique blending, 2 Plants & LOs storage and transportation advantages. Amfire 6 Deep Mines 10 Surface Mines Through our subsidiary, Alpha Terminal Company, LLC, we hold a 41% interest 2 Plants & LOs in Dominion Terminal Associates. The DTA facility consists of state-of-the art blending and sampling systems along with ground storage capability, allowing us to provide outstanding service to customers worldwide. We also have access to PA additional export capacity at Chesapeake Bay piers, Gulf of Mexico/New