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HUESKER Solutions Made in the USA SoilTain® • Made from a specially developed woven fabric • Efficient and eco-friendly alternative to traditional dewatering methods Minegrid® • High-tenacity polyester coated with a flame-resistant, anti-static coating • Unequaled safety record • Increased safety and production Impoundment Abandonment Covers • HUESKER geosynthetics can make closure faster, safer, and much less expensive Mining Geosynthetic Solutions Provider facebook.com/hueskernorthamerica twitter.com/HUESKERna linkedin.com/company/huesker-north-america www.HUESKER.us | E-mail: [email protected] | Phone: 704.588.5500 JANUARY/FEBRUARY 2018 VOL. 123 NO. 1 NEWS/4 FORECAST 2018/18 feature articles 18 The Coal Industry Prepares to Extend the 2017 Recovery Plans for capital spending increases on the heels of growing production 24 Longwall Production Rebounds in 2017 The numbers of overall faces drops by two, but production increases by nearly 10% U.S. LONGWALL CENSUS/24 SAFETY TRAINING/30 30 THE ABCs of KSAs Assessing the self-escape knowledge, skills and abilities of coal miners coal in the news 4 Cloud Peak to Ship PRB Coal to Japan 4 Murry Energy Will Acquire Majority Interest in Armstrong Energy 4 Projects Advancing in Illinois Basin in Early 2018 6 Blackhawk Set to Grow Met Coal Business in 2018 7 FERC Rejects DOE’s Proposal on Grid Reliability 8 Lighthouse Resources Files Lawsuit Against this issue Washington This month, Coal Age publishes its annual U.S. Longwall Census, 10 Another Hotspot Spells Trouble for Deer Run which provides details on some of the most advanced underground 10 Alpha Natural Resources Announces 2018 Sales coal mining systems. On the cover, a longwall shearer cuts coal. Guidance (Photo: Murray Energy) 12 Knight Hawk Prepares for New Year 14 During First Year, Trump Makes Good on Some Campaign Promises 16 Rhino Arranges New Financing Agreement 16 Don Blankenship Running for US Senate departments 2 world news Editorial 4 News 5 Australian Met Coal Production Dips 5 World News 5 Operations at Elkview Mine Are Suspended 8 Dateline Washington 6 Wesfarmers Will Sell Curragh Mine 12 People 6 Anglo Sells New Largo Coal Operation in 16 Calendar 39 South Africa Operating Ideas 42 Suppliers News 6 Richards Bay Breaks Coal Records 44 Product News 6 Canadian Coal Terminal Project Gets the Greenlight 46 Classifieds 7 Chinese Power Producers Want More Coal 48 Legally Speaking 7 Yancoal to Produce 70 Mt of Raw Coal in 2018 7 India Eases Up on Commercial Coal Mining Auction Rules January/February 2018 www.coalage.com 1 editor’s note Clean, Beautiful Coal uch to the chagrin of the opposition and the renew- www.coalage.com Mable energy zealots, President Donald Trump said it again, “clean, beautiful coal,” during his recent State of the Mining Media International, Inc. Union Address. When he said those three words, did you 11655 Central Parkway, Suite 306 Jacksonville, Florida 32224 U.S.A. cheer or cringe? Looking back across the last year, the coal Phone: +1.904.721.2925 industry can list several political victories. But, did Presi- Fax: +1.904.721.2930 dent Trump actually follow through on campaign promises? Coal Age has your answers on p. 14. Editorial Publisher & Editor-in-Chief—Steve Fiscor, [email protected] As this year begins, the coal industry finds itself in the Associate Editor—Jennifer Jensen, [email protected] middle of a recovery. Total U.S. coal production grew by BY STEVE FISCOR Technical Writer—Jesse Morton, [email protected] 58.5 million tons in 2017 to 786.9 million tons from 728.4 PUBLISHER & Contributing Editor—Russ Carter, [email protected] million tons in 2016, according to preliminary figures from European Editor—Simon Walker, [email protected] EDITOR-IN-CHIEF the Energy Information Administration (EIA). That’s an 8% Latin American Editor—Oscar Martinez, [email protected] improvement after two years of very steep declines. Some states faired better Graphic Designer—Tad Seabrook, [email protected] than others and a growing export market certainly helped. Sales This edition carries two important reports: The Annual Forecast Survey (See Midwest/Eastern U.S. & Canada, Sales—Victor Matteucci, [email protected] p. 18) and the U.S. Longwall Census (See p. 24). The forecast is based in large Western U.S., Canada & Australia—Frank Strazzulla, [email protected] part on a survey of Coal Age readers. Setting aside its unscientific nature and the Scandinavia, UK and European Sales—Colm Barry, [email protected] pro-coal bias, the report sheds some light on where the coal business current- Germany, Austria & Switzerland Sales—Gerd Strasmann, [email protected] ly stands and what it expects for 2018. The good news is that most of the coal Japan Sales—Masao Ishiguro, [email protected] companies have more money to invest in equipment and technology to improve Production Manager—Dan Fitts, [email protected] operations. The not-so good news is that not as many coal operators are cheering as last year. Their enthusiasm is now tempered, but they remain positive. The U.S. Longwall Census reports on the most productive underground coal operations. Three longwall installations mined more than 10 million tons last year and one set a record of nearly 13 million tons. Similar to the overall industry statistics, coal production from longwall mines grew as well. In fact, it outpaced the national average despite the fact that two longwall mines closed. While many longwall mines saw their production levels grow year-on-year, they still stand a far cry from where they were three or four years ago. Coal Age, Volume 123, Issue 1, (ISSN 1040-7820) is published monthly ex- This edition also carries an article from researchers at the National Institute cept January, June and November, by Mining Media International, Inc., 11655 of Occupational Safety and Health related to safety training. A decade after the Central Parkway, Suite 306, Jacksonville, Florida 32224 (mining-media. com). Periodicals postage paid at Jacksonville, FL, and additional mailing MINER Act was enacted, they wanted to determine if coal miners were more pre- offices. Canada Post Publications Mail Agreement No. 41450540. Canada pared for emergency responses, especially related to escapeways. Some of their return address: PO Box 2600, Mississauga ON L4T 0A8, Email: circulation@ findings are troubling. The article does include sources for information that can mining-media.com. Current and back issues and additional resources, in- cluding subscription request forms and an editorial calendar, are available assist coal operators with this training. online at www.coalage.com. Looking toward 2018 and beyond, the coal industry appears to have stabi- SUBSCRIPTION RATES: Free and controlled circulation to qualified subscribers. lized. There are a number of factors that could influence its future. Most import- Visit www.coalage.com to subscribe. Non-qualified persons may subscribe at ant is energy demand. Export markets, as we have learned over time, can be fickle. the following rates: USA and Canada, 1 year, $56.00, 2 year, $96.00, 3 year, $162.00, Student, $16.00, Outside the USA and Canada, 1 year, $77.00, 2 year, Competitive fuels such as natural gas also have an impact. And then there’s the $137.00, 3 year, $225.00 surface mail (1 year, $145.00, 2 year, $257.00 airmail upcoming midterm elections. For a long time, the deck has been stacked against delivery). For subscriber services or to order single copies, contact Coal Age, the coal business. The deck has been passed to a new dealer and we should be c/o Stamats Data Management, 615 Fifth Street SE, Cedar Rapids IA 52401, 1-800-553-8878 ext. 5028 or email [email protected]. happy with the cards we have been dealt. Enjoy this edition of Coal Age. ARCHIVES AND MICROFORM: This magazine is available for research and retrieval of selected archived articles from leading electronic databases and online search services, including Factiva, LexisNexis, and Proquest. For mi- croform availability, contact ProQuest at 800-521-0600 or +1.734.761.4700, or search the Serials in Microform listings at www.proquest.com. POSTMASTER: Send address changes to Coal Age, 11655 Central Parkway, Suite 306, Jacksonville, FL 32224-2659. Steve Fiscor, Publisher & Editor-in-Chief REPRINTS: Mining Media International, Inc., 11655 Central Parkway, Suite 306, Jacksonville, FL 32224 USA; phone: +1.904.721.2925, fax: +1.904.721.2930, [email protected] www.mining-media.com PHOTOCOPIES: Authorization to photocopy articles for internal corporate, personal, or instructional use may be obtained from the Copyright Clear- ance Center (CCC) at +1.978.750.8400. Obtain further information at www.copyright.com. 2 www.coalage.com COPYRIGHT 2018: Coal Age, incorporating Coal and May 2016 Coal Mining & Processing. ALL RIGHTS RESERVED. GROUND BREAKING PERFORMANCE WWW.DYNONOBEL.COM news Cloud Peak to Ship PRB Coal to Japan state-of-the-art Integrated coal Gasification Combined Cycle (IGCC) coal-fired power plants in Fukushima Prefecture, Japan. The two 540-megawatt IGCC plants are being developed by Mit- subishi Corp. Power Ltd., along with Mitsubishi Heavy Industries Ltd., Mitsubishi Electric Corp., Tokyo Electric Power Co. Holdings Inc., and Joban Joint Power Co. Ltd. “Cloud Peak Energy is pleased to be part of the Fukushima IGCC project and to help support Japan’s investment in next gen- eration coal technology,” said Colin Marshall, Cloud Peak Energy president and CEO. “If similar plants were to be built in the U.S., it would go a long way to addressing concerns about CO2 emissions while providing low-cost, reliable electricity. Today’s announce- ment also demonstrates the strategic importance of American energy resources to key Asian allies.” IGCC systems generate power using a combined cycle format incorporating coal gasification and both gas and steam turbines.