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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 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.

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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. IGCC systems offer enhanced generation efficiency, as well as re-

ductions in CO2 emissions of about 15% in comparison with the Coal produced at Cloud Peak Energy’s Spring Creek mine (above), latest, state-of-the-art, conventional coal-fired power plant de- located near Decker, Montana, will be exported through Vancouver. signs and substantially lower than most plants in operation in the United States, according to Cloud Peak. The first new IGCC plant Cloud Peak Energy Logistics (CPEL), a subsidiary of Cloud Peak is scheduled to commence operation in September 2020. Energy, has entered into a coal export sales agreement with JERA “JERA Trading is glad to have secured a long-term coal sourcing Trading Pte Ltd. (JERAT), a trading company based in Singapore. agreement with Cloud Peak Energy,” said Ronan Lory, JERA Trading Shipments are expected to begin as early as the end of 2019 and managing director. “It demonstrates that North America remains a continue for a period of 30-40 months, reaching up to 1 million key supplier of quality coal for exports and vindicates our decision metric tons (mt) in the final contract year. to set up our new subsidiary JERA Trading North America LLC.” Coal produced at Cloud Peak Energy’s Spring Creek Mine, lo- cated near Decker, Montana, will be carried by the BNSF Railway Projects Advancing in Illinois Basin in Early 2018 to Westshore Terminals at Roberts Bank, Vancouver, for loading At the start of 2018, several major Illinois Basin (ILB) coal producers onto ocean-going vessels for subsequent delivery to two new were pursuing projects to expand or extend existing steam coal min-

breaking news

Murry Energy Will Acquire Majority Interest in Armstrong Energy Murray Energy Corp. announced its subsidiary, Murray Energy reorganization, which has the support of the company’s secured note- Inc., has entered into an agreement with Armstrong Energy to purchase holders and its Official Committee of Unsecured Creditors. a 51% ownership interest in a new company that will own certain as- The new company will be a producer of low-chlorine, high-sulfur sets formerly held by Armstrong Energy. The secured noteholders of Arm- thermal coal, with five mines in the Illinois Basin, including three sur- strong Energy will hold a 49% ownership interest in the new company. face mines and two operating underground mines. “We are pleased that we were able to reach an agreement with As of June 30, Armstrong Energy controlled more than 445 million Armstrong Energy and its secured noteholders in order to ensure that tons of proven and probable coal reserves in western Kentucky. The new these mines continue to operate after the bankruptcy process,” said company will also own and operate the three existing coal processing Robert E. Murray, chairman, president and CEO of Murray Energy. “After plants and river dock coal handling and rail loadout facilities. Murray this transaction is completed, Murray Kentucky and the lenders of Arm- Kentucky will manage these mines, along with the coal preparation and strong Energy will jointly own five mines that are strategically import- shipment facilities, after this transaction has closed. ant in the Illinois Basin. These operations will complement our existing “This transaction will provide needed stability to the coal indus- mines in the Illinois Basin.” try in Western Kentucky,” Murray said. “It will also provide operational The transaction remains subject to approval by the United States consistency to our domestic customers and greater opportunity for coal Bankruptcy Court for the Eastern District of Missouri, which is adminis- sales into the international export markets.” tering Armstrong Energy’s chapter 11 bankruptcy case. The transaction Murray Energy and Murray Kentucky are being advised by legal would be implemented as part of Armstrong Energy’s proposed plan of counsel Schulte Roth & Zabel LLP, in connection with this acquisition.

4 www.coalage.com Janaury/February 2018 news continued

top 10 coal-producing states world news (in Thousand Short Tons) Week Ending (12/31/17) Australian Met Coal Production Dips YTD ‘17 YTD ‘16 % Change A number of Australian metallurgical coal exporters have recently Wyoming 321,184,866 297,218,132 8.1 signaled that they have suffered production setbacks and are ex- pecting lower output for fiscal year 2018. 90,014,712 79,823,086 12.8 In its most recent production report, BHP said metallurgical Pennsylvania 52,249,130 45,885,226 13.9 coal production for the half-year ending in December decreased Illinois 46,476,042 43,575,247 6.7 by 4% to 20 million metric tons (mt). The company’s guidance for Texas 44,552,846 39,000,584 14.2 fiscal year 2018 has been revised from 44 million to 46 million mt Kentucky 41,999,652 42,880,941 -2.1 down to 41 million to 43 million mt, which reflects lower volumes now expected at Broadmeadow and Blackwater mines. Montana 32,993,315 32,335,656 2.0 BHP’s Queensland-based coal production was lower due to the North Dakota 31,689,678 28,120,859 12.7 impacts of ongoing challenging roof conditions at Broadmeadow Indiana 31,499,890 28,766,705 9.5 and geotechnical issues brought on by wet weather at Blackwater, Utah 15,397,632 13,969,934 10.2 the company said. This was partially offset by record production at U.S. Total 786,925,182 728,364,498 8.0 South Walker Creek, Saraji, Caval Ridge and Daunia, underpinned by improved truck and shovel performance, utilization of latent drag- line capacity at Caval Ridge and increased wash-plant feed rates. ing operations while at least one, Indiana’s Blankenberger Brothers, The company said its Caval Ridge Southern Circuit project is was hoping to advance plans this year for a new underground mine progressing according to plan, with production expected to ramp that could produce as much as 3 million tons per year (tpy). And, up early in fiscal year 2019. Anglo American reported less metallurgical coal production Paringa Resources was preparing for the start of production midyear from its Australian operations for 2017. Total met production at its new Poplar Grove underground mine in western Kentucky. decreased to 21.3 million mt from 22.7 million mt. The compa- Alliance Resource Partners, the largest producer in the ny said the Grosvenor ramp-up and record productivity levels at high-sulfur ILB, received a final permit from the Illinois De- underground operations were offset by the removal of higher cost partment of Natural Resources’ Office of Mines and Minerals volumes at Dawson. in December to tunnel under the Wabash River from south- During the fourth quarter, Anglo American’s export metallur- gical coal production decreased by 8% to 4.9 million mt due to western Indiana to access coal reserves on the other side in an extended longwall move at Grosvenor and lower production at Wabash County, Illinois. Dawson. The Dawson mine was reconfigured at the end of 2016 to The permit issued to Tulsa, Oklahoma-based Alliance covers remove higher cost volumes and, in the fourth quarter of 2017, was approximately 3,200 “shadow acres.” It does not, however, autho- transitioning to a new mining area. This was partially offset by an rize Alliance’s Gibson County Coal subsidiary to construct a new increase in production at Grasstree, which experienced geological portal on the Illinois side of the river. The company must access issues and a longwall move in the fourth quarter of 2016. the coal from the Indiana side. Grosvenor completed its first longwall panel during the fourth quarter of 2017, which was followed by an extended longwall move Alliance/Gibson are not expected to begin the mining any- to rectify component defects identified during the first panel. time soon. That is because the company first wants to reopen its For the half-year ending in December, Perth-based South32 re- long-idled Gibson North underground mine near Princeton in ported a decrease in coking coal production to 1.3 million mt from Gibson County that controls the Wabash County reserves. Alli- 2.8 million mt during the same period one year ago. The company ance has not announced a restart timetable for Gibson North. restarted a single longwall at the Appin colliery during mid-October. Currently, the company is mining only at its Gibson South Saleable production from Illawarra Metallurgical Coal de- deep mine in Gibson County. Gibson South and Gibson North are creased by 50% (or 1.9 million mt) to 1.9 million mt in the December half-year as the Appin colliery recovered from the extended outage about a mile apart. and the Dendrobium longwall progressed through a faulted zone. Gibson South is one of the largest coal mines in Indiana, pro- The company said it remains on track to produce 4.5 million ducing 4.4 million tons of coal in the first three quarters of 2017. It mt of coal at Illawarra during this fiscal year, even with a longwall is a continuous miner operation. move scheduled for the Dendrobium mine in the March quarter. Hallador Energy’s Sunrise Coal subsidiary also aspires to mine beneath the Wabash River to reach coal reserves in southeastern Operations at Elkview Mine Are Suspended Illinois from its Oaktown underground mines in Knox County, In- Ltd. announced on January 19 that a significant pressure event had interrupted operations in the coal dryer at Teck’s diana. The two Oaktown mines were expected to produce in ex- Elkview mine in British Columbia, Canada, which produces metallur- cess of 5 million tons in 2017. gical grade coal. A preliminary damage assessment has determined Meanwhile, an expansion is planned in 2018 at the Liberty that repairs to the dryer may take in the range of four to six weeks. surface mine in Warrick County, Indiana, according to a spokes- In the interim, Elkview is producing higher moisture met coals at man for Alcoa, owner of the extensive coal reserves. Liberty approximately 80% of planned production levels. To manage the is operated by White Stallion Energy, which acquired Evans- overall moisture level of the product, the company is coordinating ville, Indiana-based Vigo Coal two years ago. Liberty supplies coal production with its other operations in the Elk Valley and blending the higher moisture coal with dry finished coal inventory and dry coal to Alcoa’s 755-megawatt power plant near the company’s sprawl- ing Warrick Operations near Yankeetown. Alcoa is in the process Continued on p. 6...

Janaury/February 2018 www.coalage.com 5 news continued

of restarting an energy-intensive aluminum smelter at Warrick that was idled almost two years ago because of market conditions. Continued from p. 5... The planned Liberty expansion would add an additional from other operations. Teck expects lost production in the range of 3,500 acres to the mine. It was unclear if the mine’s overall out- 200,000 metric tons of clean coal. Costs of repair to the dryer are not put would be affected. Liberty produced nearly 1.1 million tons of expected to exceed $5 million to $10 million. coal during the first nine months of 2017. Elsewhere in southwestern Indiana, Donnie Blankenberg- Wesfarmers Will Sell Curragh Mine er, president of Blankenberger Brothers, said the company’s BB Wesfarmers announced it has agreed to sell one of the world’s largest metallurgical coal mines, its 8.5-million-metric-ton-pro- Mining subsidiary still is advancing plans for a new underground ducing Curragh mine in Queensland, to Coronado Coal Group for mine in Pike County, Indiana. While no specific timetable has $700 million under an agreement that also includes a value share been released for the start of construction and production, he mechanism linked to future metallurgical coal prices. Once the said development progress is expected to be made this year. transaction is complete, Wesfarmers estimates it would report a Across the Ohio River in western Kentucky, Australia’s Paringa post-tax profit on sale of approximately $100 million. was hard at work building Poplar Grove. The mine is scheduled Reflecting recent volatility in spot coal prices, Wesfarmers will also receive 25% of Curragh’s export coal revenue generated above to start production this summer to begin supplying a total of 4.5 a realized metallurgical coal price of US$145 per metric ton (mt), million tons of coal over the next several years to Louisville Gas & paid quarterly over the next two years. Electric and Kentucky Utilities. Curragh also produces 3.5 million metric tons per year (mtpy) Poplar Grove is targeted to produce about 2.8 million tpy. of steaming coal, which is sold to the Queensland government’s The company hopes to start construction in 2019 on a sister Stanwell Corp. It was acquired by Wesfarmers for approximately underground mine, the fully permitted Cypress continuous $200 million in 2000, when it was producing 4.5 million mt of met- miner operation, in early 2019. It is expected to produce about allurgical and thermal coal. 3.8 million tpy. Anglo Sells New Largo Coal Operation in South Africa Anglo American announced the sale, by its 73% held subsidiary Blackhawk Set to Grow Met Coal Business in 2018 Anglo American Inyosi Coal Pty. Ltd., of the New Largo thermal coal Metallurgical coal will continue to represent an increasingly im- project and Old New Largo closed colliery to New Largo Coal Pty. portant part of Blackhawk Mining LLC’s production portfolio in Ltd. for ZAR850 million ($71 million). New Largo is owned by Seriti 2018, with the Lexington, Kentucky-based company expecting to Resources Pty. Ltd. and Coalzar Pty. Ltd., which are majority owned mine and sell nearly 9 million tons of met coal out of its total pro- and controlled by historically disadvantaged South Africans (HD- jected output of 14.5 million tons. SAs) and the Industrial Development Corp. SOC Ltd. (IDC). Located in South Africa, New Largo’s principal asset is the The strategic decision to grow its met coal business was be- 585-million-metric-ton coal resource, with the related mining right, hind Blackhawk’s late 2017 restructuring of long-term debt, free- that is well-positioned to supply Eskom’s new Kusile power station. ing up nearly $100 million of incremental liquidity the company The transaction is subject to customary conditions, including can use to strengthen its balance sheet. regulatory approvals in South Africa, and it is expected to close in Blackhawk CEO Mitch Potter said in late December his com- the second half of 2018. pany was “pleased to have support from our investors to com- plete this transaction. This deal positions Blackhawk to take Richards Bay Breaks Coal Records The fifth-largest coal exporter in the world, Richards Bay Coal advantage of strong metallurgical coal markets and achieve our Terminal (RBCT) enjoyed a record-breaking year in 2017 amid a organic growth potential through continued investment in our major upgrade project and despite losing 38 days of operations to portfolio of tier-1 high vol metallurgical assets.” adverse weather conditions. Since 2016, Blackhawk has developed five new mines that are In August, RBCT broke its import tonnage record, with a total expected to produce approximately 2 million tons of premium for the month of 7.5 million metric tons (mt) offloaded from trains. high-vol met coal in 2018. In December, the company broke its export tonnage record for the While the expansion was slower than anticipated in 2017 due year with a total of 76.5 million mt. The tonnage exported by RBCT in 2017 was up 5.1% over 2016. In total, RBCT offloaded 75.59 to basin-wide operational headwinds that since have calmed, million mt of coal and loaded 76.47 million mt. A total of 907 ves- Blackhawk said it is prudent to reinvest cash in 2018 into its oper- sels were loaded last year, but the capesize vessels increased from ating assets instead of continuing with its current debt amortiza- 232 in 2016 to 279 last year. tion schedule. Almost 82% of RBCT’s coal is exported to Asia, with India the Blackhawk added that the liquidity benefit from the debt re- highest importer on the Asian continent at 35.76 million mt. Only structuring “will position the company to maximize the value of 10% is exported to Europe and 7.8% to the rest of Africa. its industry-leading metallurgical coal portfolio.” Blackhawk said it also is taking action to improve corporate Canadian Coal Terminal Project Gets the Greenlight governance by adding additional independent members to its A $15 million thermal coal terminal at Fraser Surrey Docks that was approved by the Vancouver Fraser Port Authority in 2014 has board of managers. A stronger, more diversified board will help been given the greenlight by the Federal Court of Canada, ac- guide the company to its long-term strategic goals, including ma- cording to BIV. The court dismissed an appeal by two community terial debt reduction, Blackhawk said. The company said it received overwhelming support for the re- Continued on p. 7... structuring, including participation from more than 97% of first-lien

6 www.coalage.com Janaury/February 2018 news continued lenders and more than 92% from second-lien lenders. Blackhawk was advised by Perella Weinberg Partners and Latham & Watkins Continued from p. 6... LLP. The lenders were represented by Davis Polk & Wardwell LLP. Privately owned Blackhawk operates 10 mining complexes groups backed by Ecojustice of the project’s approval. The project and 25 mines across southern West Virginia and eastern Ken- has been controversial because it would move thermal coal mostly tucky. It has nearly 3,000 employees. from American coal mines, which have no port access on the Pacif- ic West Coast to ship coal to Asia. Blackhawk mines and sells met, PCI, steam, stoker and other specialty coals to a wide range of domestic and international steel Chinese Power Producers Want More Coal producers, electric utilities, and industrial customers. China’s four major power generation groups have asked the National The company was formed in 2010 with the acquisition of the Development and Reform Commission, the country’s top economic Spurlock complex in Floyd County, Kentucky, producing a little more regulator, to increase coal supplies and regulate and reduce coal than 1 million tons of coal in its fi rst year of operation. In 2012, Black- prices after snowstorms sweeping across central and southern hawk acquired the Pine Branch complex in Perry, Knott, Breathitt provinces led to major losses for the thermal power sector, China and Leslie counties in eastern Kentucky. ICG Hazard in eastern Ken- Daily reported. The four top utilities, China Huaneng Group, China Datang Corp., tucky then was acquired by Pine Branch in 2014, with the Triad, Blue China Huadian Corp. and State Power Investment Corp., said in a Diamond and Hampden complexes acquired later that year in Indi- joint report they are facing pressure due to tight gas and coal sup- ana, eastern Kentucky and West Virginia, respectively. plies and have warned of potential heating and electricity shortages Blackhawk also acquired the Panther Creek, Blue Creek, as blizzards continued to buffet some central and southern provinces. Rockwell and Kanawha Eagle complexes in West Virginia in Octo- ber 2015. Yancoal to Produce 70 Mt of Raw Coal in 2018 China’s Yancoal Australia Ltd (Yancoal), the largest pure-coal pro- ducer in Australia, is expected to produce at least 70 million metric FERC Rejects DOE’s Proposal on Grid Reliability tons (mt) of raw coal in 2018, according to Xinhua. The annual raw On January 8, the Federal Energy Regulatory Commission (FERC) coal production of Yancoal, which is a subsidiary corporation of rejected a rule proposed by the Department of Energy (DOE) on Yankuang Group Co. Ltd, one of China’s largest energy enterprises, grid reliability and resilience pricing. The rule would have en- has seen great increase after the acquisition of Coal & Allied in sured that each eligible reliability and resiliency resource could September. recover its fully allocated costs. According to DOE Secretary Rick Perry, FERC-approved India Eases Up on Commercial Coal Mining Auction Rules wholesale markets are not necessarily pricing resiliency attri- Aiming to push ahead and open commercial coal mining in India to private miners, the country’s Ministry of Coal has eased rules butes of traditional baseload generation adequately. The rule for auction of coal blocks and woo domestic and foreign investors would have paid for baseload generators to maintain a 90-day into the sector. stockpile of fuel. The Coal Ministry was trying to complete the ground rules for Back in September, Perry proposed the rule to the FERC as the auction of at least 10 coal blocks by the end of the current fi scal a way to address what he called threats to U.S. electrical grid re- year on March 31, which would open up coal mining to private min- siliency, citing the 2014 Polar Vortex as one example. Perry de- ers with full production, pricing and merchant sale freedom, for the scribed it as a warning that the current and scheduled retirements fi rst time since the coal industry was nationalized in 1973. As things stand now, coal blocks were allocated to private of fuel-source units could affect the reliability and resiliency of miners through the auction route for captive mining only with min- the power grid. ers having specifi c end-use plants. After rejecting the proposal, FERC initiated a new proceed- To trigger greater interest among domestic and foreign inves- ing that will examine the resilience of the bulk power system by tors, the most signifi cant changes in auction rules proposed by the directing operators of the regional wholesale power markets to Coal Ministry was the adoption of “reverse auction” to allocate the provide information as to whether FERC and the markets need to 10 coal blocks to commercial coal miners instead of a “forward take additional action on resilience of the bulk power system. auction” as laid out in the draft rules late last year. Through the reverse auction route, a coal block would be allo- “The goals of this proceeding are to develop a common un- cated to a bidder that offers the lowest price coal to end-users. The derstanding among the commission, industry and others of what government would set a benchmark price based on the “notifi ed resilience of the bulk power system means and requires; to un- price of coal charged by government-owned Coal India Ltd. (CIL)” derstand how each regional transmission organization and in- and bidders would have to compete with the lowest selling price of dependent system operator assesses resilience in its geographic coal below this benchmark price. footprint; and to use this information to evaluate whether addi- In forward auction, the ministry has stated it would lay down a minimum revenue share of the government at 1.2 times the notifi ed tional commission action regarding resilience is appropriate,” the price of CIL and a bidder quoting the highest share of revenue with statement by FERC said. the government would be awarded the coal block. Each regional market operator must submit the required in- The Indian government has set a target of achieving coal pro- formation within 60 days of issuance of the order. duction of 1.5 billion ton by 2020 of which 1 billion tons would be “I appreciate the commission’s consideration and effort to fur- accounted by CIL, 100 million tons by Singareni Collieries Co. Ltd., ther assess the marketplace distortions that are putting the long- and the remainder by captive and commercial miners. term resiliency of our electric grid at risk,” Perry said. “As intended, my proposal initiated a national debate on the resiliency of our elec-

Janaury/February 2018 www.coalage.com 7 news continued

tric system. What is not debatable is that a diverse fuel supply, espe- Lighthouse Resources Files Lawsuit Against Washington cially with on-site fuel capability, plays an essential role in providing Lighthouse Resources Inc. filed a federal lawsuit against Washington Americans with reliable, resilient and affordable electricity, particu- Gov. Jay Inslee and members of his administration for blocking coal larly in times of weather-related stress like we are seeing now.” mined in Wyoming, Montana and other western sister states from Those in the coal industry were not nearly as positive as Perry. being exported through a terminal in Washington, which it alleged National Mining Association President Hal Quinn called the is in violation of the U.S. Constitution’s Commerce Clause and other lack of action by the FERC “disappointing.” federal statutes. The complaint, filed in U.S. District Court in Tacoma, He added that while FERC agreed to continue to examine the Washington, detailed how state officials allegedly violated the U.S. grid vulnerability to events such as severe weather, retirements of Constitution and federal law by unreasonably denying and refusing vital coal and nuclear power plants continue. “It is now incum- to process permits to redevelop a brownfield site on the Columbia bent upon grid overseers to adopt significant measures to safe- River where an existing Washington state lease allows coal exports. guard the American people and economy from serious disrup- Lighthouse Resources is an energy supply chain company tions in future power supply,” he said. whose subsidiaries own and operate coal mines in Montana and

dateline washington Life After Death

by luke popovich

In my downtown Washington neighborhood, a sign employment gains in the last three quarters — with 11 coal-producing above my friend’s parking space waxes philosophical states adding jobs. Exports through November of last year climbed 45%, about a chronic urban problem: thanks to all those rich and poor countries that didn’t get the coal-is- Is there life after death? dead memo. At Hampton-Roads, the nation’s largest coal terminal, coal Park here and find out. shipments last year jumped by 58.9%. More recent data suggests the At times over the last few years, many in the coal strength in overseas demand should continue well into this year. industry must have mused over the same question. No doubt these favorable market conditions put wind in our sales. It’s only natural after enduring a near death experi- But as National Mine Association’s (NMA) CEO Hal Quinn puts it, the ence to wonder what, if anything, is on the other side. winds not only filled our sails, they actually “reversed.” That is, policies Luckily for coal, there is life after eight years of the previous adminis- that once harmed coal shifted to ones that helped it. tration and its dogged attempts to kill off coal — and with it the jobs, What if they hadn’t shifted? What if government policies had con- revenue and fuel diversity that coal provides. tinued to destroy coal assets and prevailed to keep coal in the ground? Give Team Obama this: they didn’t fail for lack of trying. We all Could the industry have been able to take advantage of the mar- know the regulatory barrage from Washington that rained on our posi- ket opening it had last year? Coal would not have generated 35% of tions just as natural gas launched a frontal assault. Then seemingly PJM’s electricity in that freezing week in January and spared the 13-state out of nowhere, the cavalry came to the rescue, put an abrupt end to grid from potentially serious problems. Other exporting countries and the bombardment and helped us regroup and, at least for now, held off their workers, not ours, would have been beneficiaries of the rebound the gas invaders. in global demand if government had aided activists in shutting down This explains why many in the industry are fairly content with coal terminals. life today. It may not be great, but it’s still pretty good after the re- Some observers low ball our employment gains by ignoring contract cent brush-with-death experience. “The best feeling in the world is to workers who comprise about one-third of total direct coal employment. be shot at and missed,” said Winston Churchill. Indeed, we live to fight Add these together with miners on company payrolls and employment another day. was up by 15% from the end of the first quarter through December of last Many commentators, reluctant to give the president any credit for year. In Walmart America, what state wouldn’t want more jobs paying anything, look balefully at coal’s diminished state. The glass is somehow $83,000 a year with good benefits? never half full, in their eyes, it’s always half empty. But they didn’t ex- Which poses another question: how many people would have had perience first-hand the confrontation with the Environmental Protection these jobs if the election turned out differently and Team Obama’s pol- Agency’s (EPA) “death star” and its “deep state” allies at the Department icies continued for four more years? Yes, coal did benefit from market of the Interior, at CEQ, etc. Small wonder these commentators can’t ap- conditions last year. But thanks in part to a caring government. preciate what it is like to have survived. But survive we did. At year’s end, the signs of revival were real Luke Popovich is a spokesperson for the National Mining Association, the enough for anyone to appreciate. Production was up 7.5%, spurring industry’s trade group based in Washington, D.C.

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Wyoming. Lighthouse Resources is also the corporate parent of The St. Louis-based company, the largest coal producer in Il- Millennium Bulk Terminals-Longview (MBT-Longview), which is linois, was expected to receive MSHA approval in early 2018 for a redeveloping a brownfield site for coal export on the Columbia mine re-entry plan highlighted by the permanent sealing propos- River. The site currently receives coal for local use and is ready to al. Foresight submitted the plan to MSHA on December 20. receive other bulk commodities. “They have another hotspot area there,” said Art Rice, an offi- “It’s no secret that Washington state officials are philosoph- cial with the Illinois Office of Mines and Minerals in Benton. “The ically opposed to coal,” said Everett King, president and CEO of CO level went up and they had another fall.” According to Rice, Lighthouse Resources. “But that does not give them legal authori- the latest hotspot was found in early to mid-December. ty to discriminate against this project and block foreign trade and “Through the existing boreholes they had, they were able to find interstate commerce.” out that they’ve got another hotspot over that fall area,” he said. “The Lighthouse’s complaint outlines how the defendants al- fall they had was in the longwall tailgate area. The pressure caused legedly violated the dormant foreign commerce clause by uni- another flare-up and they’ve had elevated CO readings” again. laterally imposing an embargo on new coal exports and by Murray/Foresight spokesman Gary Broadbent declined to discriminating against Lighthouse’s efforts to transport into elaborate on the reasons for Foresight’s MSHA filing. “At this time, Washington coal that is being mined in Montana and Wyoming the partnership is uncertain as to when production will resume at and other western states. its Deer Run mine” is all he would say. The complaint also alleged that the state’s actions are It soon will be three years since Deer Run, also known as Hill- preempted by both the ICC Termination Act, which gives sboro, last produced coal on a consistent basis. MSHA ordered the federal government jurisdiction over the regulation of the mine closed on March 26, 2015, after elevated levels of carbon railroad operations, as well as the Ports and Waterways monoxide gas were detected, apparently caused by a hard-to-get- Safety Act (PWSA), which allows for the operation of vessels to fire or hotspot in a mined-out area behind the longwall. in U.S. harbors. In the spring of 2016, Foresight requested and received per- In its complaint, Lighthouse seeks, among other things, a mission from MSHA to temporarily seal the mine located a cou- declaration by the court that the denial by the state is unlawful ple of miles outside of Hillsboro in Montgomery County. Hills- and an order directing the state to continue processing any and boro is about 65 miles northeast of St. Louis. all current and future permit applications. That was part of a lengthy effort by Foresight to extinguish If the permits were to be approved, the new export facility the supposed blaze, in part by pumping nitrogen through surface could help boost annual U.S. coal exports by 44 million metric drill holes into the mine. Over time, CO readings did, in fact, de- tons and increase the annual value of U.S. exports by more than cline to more normal levels. $2.5 billion. This, in turn, would significantly reduce the U.S. Foresight, which in the interim saw Ohio-based Murray En- trade deficit with these nations and provide our allies and trad- ergy Corp. acquire a majority of the privately-owned company, ing partners with a reliable, diverse, and secure supply of energy, appeared to be working to reopen Deer Run but never publicly Lighthouse said. announced a planned restart date. Additionally, the expanded port facility will add more than Any planned restart presumably will be delayed even more 1,300 construction jobs and 135 family-wage jobs in the local now that another hotspot has been discovered. community and support thousands of other direct and indi- Deer Run produced 5.5 million tons of coal in 2014 and was in rect jobs across the coal supply chain in neighboring states and the process of ramping up even more in 2015 when it was closed. throughout the country, the company added. The mine operated sporadically over the next several months, As stated in the complaint, Washington officials allegedly turning out only 1.87 million tons in 2015. It produced no coal in ignored their own greenhouse gas emissions report that found both 2016 and 2017, according to MSHA. that sourcing coal from U.S. mines has a net reduction on glob- Robert Moore, Foresight chairman, president and CEO, said al greenhouse gas emissions by displacing mining performed in in the fall of 2017 that the company was placing more coal sales other parts of the world with more environmentally friendly U.S. internationally, mainly to Europe and Asia, in response to a “lack- mining conditions. luster” steam coal market in the United States. Foresight sent 3.4 “This export facility will create U.S. jobs, shrink the U.S. million tons into the export market through September and ex- trade deficit, and reduce carbon emissions,” said King. “Unfor- pected 2017 total export volumes to exceed 5 million tons. tunately, these benefits will never be realized if Washington state continues to obstruct and block approval of this energy infra- Alpha Natural Resources Announces 2018 Sales Guidance structure project.” Alpha Natural Resources (ANR Inc.) announced it is issuing sales guidance for 2018 of 13 million to 14.6 million tons, comprised Another Hotspot Spells Trouble for Deer Run of approximately 6.8 million to 7.8 million tons of metallurgical A new hotspot discovered in December in Foresight Energy’s long- coal and 6.2 million to 6.8 million tons of thermal coal. Alpha’s idled Deer Run steam coal mine in Illinois prompted the compa- anticipated 2018 metallurgical coal sales consist of various grades ny to seek federal Mine Safety and Health Administration (MSHA) of metallurgical coal, with the majority of these sales from Alpha’s authority to permanently seal the current longwall district, imply- low-volatile, medium-volatile, and high-volatile A products. ing an uncertain future for a mine once seen as the company’s po- “We have diligently worked over the past 18 months to create tential crown jewel in the high-sulfur Illinois Basin state. a business model that will allow Alpha to thrive in any market,”

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said Alpha CEO David Stetson. “We have invested in our people mine at its Kepler Complex, which is expected to be completed and our properties to create a company that can quickly adjust its in late 2018, allowing this mine to begin production in early 2019. production to match the coal markets.” The Road Fork 52 mine will extend the life of the Kepler Complex Stetson added that the company has lowered the costs of and provide additional mining capacity when it is fully operation- operating its mines since emerging from bankruptcy in July 2016. al in 2019. More than half of Alpha’s metallurgical sales in 2018 will be Alpha also announced it expects sales in the fourth quarter sold under Alpha’s multiyear arrangement to a counterparty for of 2017 to be 1.9 million tons of metallurgical coal and 1.7 million ultimate sale to third parties in the international market. The ma- tons of thermal coal, and full-year 2017 sales of 7.9 million tons jority of Alpha’s thermal sales are too long-standing domestic util- of metallurgical coal, including 1 million brokered tons, and 7 ity customers with the remaining thermal production to be sold million tons of thermal coal. With the Lexington coal transaction domestically or into the export market via spot sales. closing in the fourth quarter of 2017, Alpha expects to incur a one- “We are already taking advantage of the strong international time loss of approximately $165 million. markets for our coal through additions of incremental production with minimal new capital investments,” Stetson said. “If this mar- Knight Hawk Prepares for New Year ket remains strong and stable, we can further flex and increase Southern Illinois steam coal producer Knight Hawk Coal entered our metallurgical production beyond the guidance provided 2018 on an optimistic note, preparing to install a new coal-con- above by approximately 1 million tons on an annualized basis veyor belt at its flagship Prairie Eagle operation in Perry County. without incurring significant capex cost. We also have the ability Assuming the Armstrong deal gets done soon — at least in the to decrease production without having to absorb material fixed first quarter of the new year — Knight Hawk’s total production cost if this market changes.” could approach 9 million tons in 2018. Stetson said a major transportation infrastructure project The company added a unit shift in the fall at Prairie Eagle and at Workman Creek is scheduled to be completed in the first moved to a new portal at the big underground mine. Currently, it quarter of 2018 and several mines were opened or expanded at is running nine unit shifts at Prairie Eagle, with a 10th likely a year the Marfork Complex in 2017. The transportation infrastructure or so from now. project will decrease costs, and, combined with the new mines, Carter said Knight Hawk’s main project for 2018 is construct- allow the Marfork Complex to provide one-half of Alpha’s incre- ing the 4-mile-long, above-ground conveyor to hook up with the mental metallurgical production, he added. The capex projects Prairie Eagle prep plant. Knight Hawk expects to be issued a per- that are completed or nearing completion have also enabled mit from the Illinois Office of Mines and Minerals before the end Alpha to begin preliminary development work on new under- of 2018 to extend its Blackhawk surface mine in Randolph County. ground and surface mines at the Marfork Complex with more In mid-December, Armstrong idled its active underground than 35 million tons of high-quality metallurgical reserves asso- and surface mines in western Kentucky’s Ohio and Muhlenberg ciated with them. counties because their high-sulfur steam coal was not needed In addition to the investments at the Marfork Complex, during the Christmas holiday season. The move left more than Alpha deployed capital on the slope to the new Road Fork 52 500 miners out of work.

% awards

Alpha Natural Resources West Virginia Affiliates Receive Safety Recognition On January 30, Alpha Natural Resources (ANR) announced outstanding Preparation Plants and Loadouts safety performance for 2017, with four affiliate operations in West Virginia • Elk Run Coal Co. LLC, Chess Processing Plant honored for safety achievements by the West Virginia Office of Miners’ Health Safety and Training (WVMHS&T) and the West Virginia Coal Association. Barton B Lay, Jr. Award – Milestones of Safety Award – Surface Mine The four Alpha affiliates received the Mountaineer Guardian Safe- • Republic Energy LLC, Workman Creek Surface Mine ty Award, presented to selected mines and mining-related entities that meet strict safety criteria. It recognizes organizations with fatality-free Three of the operations are multiple winners of the Mountaineer operations, superior internal safety programs, cooperative teaming with Guardian Safety Award with Cedar Grove No. 2 and Workman Creek hav- authorities and minimal safety violations. In addition, inspectors with the ing been honored two of the last three years. West Virginia Office of Miners’ Health Safety and Training may nominate “We are proud of the accomplishments of all the employees at these mines and facilities for the awards. operations and to see them recognized for their safety achievements with Republic Energy LLC’s Workman Creek Surface Mine in Raleigh County such prestigious awards,” said Brian Keaton, Alpha’s senior vice presi- has been honored with the Barton B. Lay, Jr. Milestones of Safety Award, one dent of safety and health. of only two operations to receive the WVMHS&T’s most prestigious award. All of these Alpha-affiliated operations received recognition at the The following operations in West Virginia also received the Mountain- Mountaineer Guardian Luncheon during the 45th annual West Virginia eer Guardian award: Mining Symposium January 30 in Charleston, West Virginia. The West Vir- Underground Operations ginia Office of Miners’ Health Safety and Training and the West Virginia • Aracoma Coal Co. LLC, Cedar Grove No. 2 Mine Coal Association sponsor the awards to promote safety in West Virginia • Kingston Mining Inc., Kingston No. 1 Mine coal mines and facilities.

12 www.coalage.com Janaury/February 2018 news continued

During First Year, Trump Makes Good on Some move the Federal Land Coal Leasing Moratorium that was enact- Campaign Promises ed in January 2016. While on the campaign trail, President Donald Trump made “The action I am taking today will eliminate federal over- promises to revive the coal industry and put miners back to work. reach, restore economic freedom and allow our companies and In the election, he swept the coalfi elds, carrying 69% of the vote in workers to thrive, compete and succeed on a level playing fi eld for West Virginia, 70% in Wyoming and 63% in Kentucky. Miners were the fi rst time in a long time,” Trump said at the signing. hopeful. Now, a little more than a year after President Trump took In late March, Secretary of the Interior Ryan Zinke issued offi ce, coal production is up slightly, by 8% in 2017, and Trump Secretarial Order 3348 revoking the January 16, 2016, order is- has fulfi lled some of his campaign promises. However, there has sued by then-Secretary Sally Jewell that placed a moratorium on not been a complete turnaround. At the end of the 2017, 27 coal- federal coal leases. Order 3338 imposed a three-year moratori- fi red power plants were either scheduled to close or for conver- um, with exceptions, on further coal lease sales pending comple- sion. The number of coal mining jobs is up a little, from 50,400 tion of a Programmatic Environmental Impact Statement (PEIS) at the end of 2016 to 51,700 at the end of 2017, according to the analyzing potential leasing and management reforms of the fed- Bureau of Labor Statistics. eral coal program. During his campaign, Trump promised to eliminate regula- In May, Environmental Protection Agency (EPA) Administra- tions that impact growth in the coal industry. tor Scott Pruitt initiated a review of the CPP. Shortly after that, in He promised to repeal the Stream Protection Rule. On Feb- October, Pruitt proposed a repeal of the rule. The CPP set strin- ruary 16, he followed through on that promise by signing a bill gent carbon emission rates for existing coal-fi red power plants, to repeal the rule, which he called “another terrible job-killing aiming for a reduction of 32% below 2005 levels by 2030. rule.” Those in the industry had argued that the rule, which was “The Obama administration pushed the bounds of their au- fi nalized on December 20, 2016, would have duplicated existing thority so far with the CPP that the Supreme Court issued a his- regulations that were already in place. The fi nal rule updated the toric stay of the rule, preventing its devastating effects to be im- 33-year-old regulations with stronger requirements for surface posed on the American people while the rule is being challenged coal mining operations. in court,” Pruitt said. “We are committed to righting the wrongs of On March 28, President Trump signed an executive order on the Obama administration by cleaning the regulatory slate. Any energy independence that directed executive departments and replacement rule will be done carefully, properly, and with humil- agencies to review existing regulations that “potentially burden” ity, by listening to all those affected by the rule.” the development or use of domestically produced energy re- The CPP was put on hold by the Supreme Court in February sources. It also directed them to suspend, revise or rescind those 2016. regulations. It specifi cally targeted a review of former President On December 18, the EPA issued an Advance Notice of Pro- Barack Obama’s Clean Power Plan (CPP) and either amend or re- posed Rulemaking (ANPRM) to announce it would solicit public input as it considers the next regulatory steps to limit green- house gas (GHG) emissions from existing power plants. The EPA is soliciting information on systems of emission reduction that are applicable to or at a power plant, information on compliance measures, and information on state-planning requirements un- der Clean Air Act section 111(d). It planned to take comments for 60 days. Trump also promised to rescind the Waters of the U.S. Rule (Clean Water Rule) that clarifi es which waters and wetlands would fall under federal protection, revoke the stringent 2015 ozone standards, and streamline permitting for energy pro- jects. On June 27, the EPA, Department of Army, and Army Corps of Engineers announced they were proposing a rule to rescind the Clean Water Rule and re-codify the regulatory text that existed prior to the 2015 defi ning of the “waters of the United States” or WOTUS. “We are taking signifi cant action to return power to the states and provide regulatory certainty to our nation’s farmers and busi- nesses,” said Pruitt. “This is the fi rst step in the two-step process to redefi ne ‘waters of the U.S.’ and we are committed to moving through this re-evaluation to quickly provide regulatory certain- ty, in a way that is thoughtful, transparent and collaborative with other agencies and the public.” Trump also promised that he would withdraw from the Par- While there have been positives during Donald Trump’s presidency, is climate agreement, which Obama signed in September 2016. there have been a couple blows to the industry as well. The agreement’s goal was to strengthen the global response to the

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threat of climate change, with countries reducing greenhouse gas look to capitalize on the current strong market conditions, with emissions. On June 1, Trump announced that the United States a strategic focus on our expansion in the international met planned to withdraw from the Paris climate agreement and begin coal markets,” said Rick Boone, president and CEO of Rhino’s negotiations to either re-enter or negotiate an entirely new agree- general partner. “We look forward to working with Colbeck, our ment with more favorable terms for the United States. new financing partner, to increase the value of our partnership According to Trump, meeting former President Barack Obama for our unitholders. Administration’s requirements in the Paris accord would cost the “Our new financing partner, Colbeck, coupled with the U.S. economy nearly $3 trillion over the next several decades. continued support of our sponsor, Royal Energy Resources, Under the rules of the agreement, the U.S. cannot formally as well as our financial partner Yorktown Partners, positions withdraw until 2020. us to be a strong, long-term competitor in the worldwide While there have been positives during Trump’s presidency, coal markets.” there have been a couple blows to the industry as well. Last month, Rhino sold its interests and related assets and In January, the Federal Energy Regulatory Commission unan- liabilities in Sands Hill Mining to an unnamed third party in imously rejected a proposal to subsidize coal-burning and nucle- exchange for a future override royalty for any mineral sold, ex- ar power plants. cluding coal, from Sands Hill after the closing date. The third As proposed, the rule aimed to improve the resilience and party assumed the surface coal mining operations as well as the stability of the electrical grid. Citing some electricity problems limestone operations at Sands Hill. The partnership maintained that struck during the “polar vortex” of 2014, Secretary of Energy ownership of an Ohio River barge loading facility that was previ- Rick Perry proposed that utility companies should pay coal and ously owned and operated by the Sands Hill. Rhino believes this nuclear plants to keep weeks of extra fuel on hand. asset can provide significant value through the sale or potential Prior to this, in August, the Trump administration rejected lease of the facility. The partnership expects to recognize a gain a proposal by Murray Energy CEO Robert E. Murray asking for a from the divestiture of Sands Hill since the third party will as- two-year moratorium on closures of power plants. He asked that sume approximately $4 million in reclamation obligations asso- the administration invoke provisions under the Federal Power ciated with this operation. Act to intervene when the nation’s electricity is threatened by an emergency. The administration deemed it unnecessary. Don Blankenship Running for US Senate While the industry is on the right track, it will take more than Nearly nine months after being released from federal prison, for- a year to undo the past. mer CEO Don Blankenship has entered the West Virginia U.S. Senate race. On January 23, Blankenship, filed his Rhino Arranges New Financing Agreement paperwork as a Republican candidate. The seat is currently held Rhino Resource Partners executed a new three-year, $80 mil- by Sen. Joe Manchin. lion financing agreement with Colbeck Capital Management. Blankenship was found guilty of misdemeanor conspiracy The financing agreement is a multidraw term loan with ini- to violate mine safety standards related to the Upper Big Branch tial proceeds used to refinance Rhino’s revolving credit facility (UBB) mine explosion on April 5, 2010, that killed 29 miners. He with PNC Bank, fully collateralize the partnership’s existing was not charged with causing the explosion, but the charges were letters of credit and fund general working capital purposes. related to events leading up the explosion and statements made Rhino plans to use the delayed draw portion of the financing following the tragedy. He was sentenced to one year in prison and agreement for potential strategic acquisitions and accretive a $250,000 fine. organic growth opportunities. “I look forward to talking with West Virginians and telling “Our new three-year financing agreement provides us the them why I am the best candidate,” Blankenship said on twitter. financial stability and flexibility to grow the partnership as we Blankenship has continued to maintain his innocence re- garding the disaster. In an ad for his campaign, the disaster is de- scribed as “Obama’s deadliest coverup,” and that Mine Safety and calendar of events Health Administration documents revealed that the “Upper Big Branch internal report was fixed.” Another ad addresses statements made about Blankenship February 25-28, 2018: 2018 Society for Mining, Metallurgy and Exploration (SME) Annual Conference & Expo, Minneapolis, Minneso- regarding his concern for safety, stating that he was a “safety in- ta. Contact: Web: www.smenet.org. novator.” His website says, “Its simple, Don Blankenship led the industry in safety and in protecting miners for decades. Slogans March 19-22, 2018: Electric Power, Gaylord Opryland Convention Center, saying anything to the contrary are just that — slogans.” Nashville, Tennessee. Contact: Web: http://2018.electricpowerexpo.com. During a town hall meeting in Logan County, West Virginia, April 23-25, 2018: Coal Processing Technology (CoalProTec 2018), Blankenship said the man who is described in the media is not Heritage Hall, Lexington, Kentucky. Contact: Mel Laurila, executive him, but a “fictional character” and “a result of liberals only listen- director, Coal Preparation Society of America (CPSA), Tel: 859-797- ing to liberals.” He said those people do not know the real him. 9118; Email: [email protected]; Web: www.coalprepsociety.org. Other candidates in the race include U.S. Rep. Evan Jenkins, May 6-9, 2018: Canadian Institute of Mining (CIM 2018), Vancouver state Attorney General Patrick Morrisey, former coal miner Bo Co- Convention Center, Vancouver, BC Canada. Contact: Web: www.cim.org. pley, and Major Tom Willis.

16 www.coalage.com Janaury/February 2018 forecast 2018 The Coal Industry Prepares to Extend the 2017 Recovery Plans for capital spending increases on the heels of growing production

by steve fiscor, editor

As to whether stability has been restored For production to significantly in- tend to spend it. Based on that informa- to the coal industry, the 2017 numbers crease in 2018 and beyond, however, a tion and anecdotal information from the speak for themselves. Last year, total coal few market fundamentals need to work leading coal companies and the EIA, Coal production increased by 58.5 million tons in favor of the coal industry. Growing Age attempts to identify trends. to 786.9 million tons from 728.4 million the economy and restoring or building Looking back to the beginning of tons in 2016, according to preliminary new factories will increase demand for 2017, a shell-shocked U.S. coal indus- figures from the Energy Information Ad- electricity. An increase in natural gas try saw 2016 production levels drop to ministration (EIA). However, the devil is, prices would be helpful from a compet- their lowest level since 1978, but they as they say, in the details. Some coal-pro- itive fuel standpoint. Healthy demand knew the “war on coal” was about to end ducing regions saw healthy increases, from abroad would support exports and because they had a friend in the White while others did not, and exports played a a weak dollar economy would sustain House. Throughout the summer, coal persuasive role. that scenario. By year-end, the outcome operators found much-needed stability After two years of steep production de- of the midterm elections could become a and, during the fall, the Coal Age Fore- clines, the coal business posted a positive pivotal factor for the coal industry’s na- cast Survey defined a group of profes- number. The big question is: Will it be able scent recovery. sionals that were more positive for the to grow from this level or at least maintain At the beginning of each year, Coal most part with a more pragmatic out- it? For those working outside or against the Age publishes its Annual Forecast based look toward 2018. They said money has coal industry who do not share the same on a survey of its readership. The informal been allocated to make long-overdue in- level of unbridled optimism, the jury is still study gives an assessment of the current vestments to expand production. out. In its most recent short-term outlook, market situation, as well as the state of the EIA has forecast reduced U.S. coal pro- mind among coal operators. In addition Survey Says duction in 2018, falling by 2%. For 2018 and to supply and demand fundamentals, the Coal Age contacted 500 professionals who 2019, the agency expects coal production survey also asked coal operators about mine and process coal, and received 44 to hover around 760 million tons. Coal op- their feelings, the amount of money they completed surveys. The majority of them erators in general are betting against them. plan to spend this year, and how they in- (72%) produced bituminous coal. Sub-

Figure 1 — Production, Consumption and Attitude

18 www.coalage.com January/February 2018 forecast 2018 continued bituminous, lignite and anthracite ac- spend the money, they said equipment Figure 2 — Capital Expenditures counted for 24%, 2% and 2%, respective- upgrades (58%), new equipment (50%) How will the mine spend the money? ly. As far as production capacity, most of and mine development (50%). Equipment 0 10 20 30 40 50 60 70 80 the respondents represented large mine upgrades have remained a priority for Equipment Upgrades 58% operators (more than 5 million tons, more than five years now. New Equipment 50% 51%), followed by medium (1-5 million When asked about their capital bud- Mine Development 50% tons, 27%) and small (less than 1 million gets, 16% said they would spend more Permitting and Bonding 44% Exploration 25% tons, 22%); 47% described themselves as than $100 million, while 8% said they Ventilation Systems 25% underground coal operators exclusively, would spend $50-$100 million; 20%, $25- Used Equipment 22% while 34% said they only operated sur- $50 million; 12%, $10-$25 million; and Technology Upgrades 19% New Mine Startup 13% face mines. The remainder (19%) said 44%, $10 million or less. This year, 44% of Reclaim Systems 11% they worked for a company that mined the Coal Age survey respondents said they New Plant Construction 11% coal using both surface and underground would spend $25 million or more. In 2018, Other 11% techniques. Similar to past years, most coal operators will invest in operations Plant Additions 8% Quality Control 3% of the respondents said their coal was and equipment to produce more coal cost shipped to electric utilities (73%). The effectively. With coal prices as low as they What is the capital expenditure budget for 2018? remainder said their coal was destined are, it’s one of the few remaining levers Less than $10 million 44% for steel mills (9%) or industrial boilers they have. $10-$25 million 12% $25-$50 million 20% (18%). Power generation remains the When asked about what specific is- $50-$100 million 8% overwhelming use for the majority of U.S. sues will affect the coal industry most in More than $100 million 16% coal production. 2018, power plant regulations registered For 2018, will capital expenditures: Going into 2018, the survey revealed the highest score (4.3/5) as the leading Increase 54% that coal operators were still optimistic. concern. This was followed closely by No change 38% A total of 63% (vs. 89% last year) described politics and policy and pricing. Coal pric- Decrease 8% their attitude as positive, and only a few es remained ahead of the economy. Read- more were less optimistic (7% vs. 3% in ing between the lines, the miners are say- Figure 3 — U.S. Coal Production, 2016). This year, 30% said they were am- ing that prices and the economy do not 2007-2017 (million short tons) bivalent, compared to 8% last year. The matter if their customers are not allowed overall mood in coal country remains to burn coal. Limited production capacity 1,400 upbeat. and a retiring workforce was the least of 1,200 Confirming that feeling, 51% of the re- their concerns. 1,000 spondents thought their coal production would increase in 2018, compared to 44% The Recovery Begins 0,800 last year. One-third (33%) said production Coal production recovered across the 0,600 would remain the same, compared to 49% board in 2017. Wyoming posted the larg- 0,400 last year. A growing number (16%) said est increase on a tonnage basis with coal production will decrease, compared to 7% production increasing nearly 24 million 0,200 last year. A majority of the industry (84%), tons to 321 million tons from 297 million 0,000 however, felt production will remain the tons in 2016. Production also increased 2007 2009 2011 2013 2015 2017 same or grow in 2018, which is about the substantially in West Virginia (10 million Source: Energy Information Administration same as last year (83%). tons), Pennsylvania (6 million tons) and Coal mining is a capital-intensive Texas (5 million tons). Kentucky, howev- sumed to produce electricity remained business. For 2018, 54% of the respondents er, continued to slide as the common- about the same in 2017. At the end of said their capital budgets would increase, wealth’s production dropped 2.1% or a September 2017 (latest stats available), which was up substantially from 40% last little more than 880,000 tons. Dropping U.S. power plants had burned 544 million year. Last year, 33% said their budgets 29% from 61 million to 43 million tons in tons, compared to 550 million tons at the would decrease, and this year only 8% said 2016, coal operators in eastern Kentucky same point in 2016. The total tonnage con- it would decrease. More than one-third suffered the largest setback, and in 2017, sumed for electricity was 678 million tons of the respondents (38%) said their bud- they lost an additional 1.1 million tons in 2016, the lowest figure since the early gets would remain the same, compared to of production. Production in the Interior 1980s. If consumption advances at the 27% last year. That is a significant turn of region, which includes the Illinois Basin, same rate, total 2017 coal consumption events, where most of the industry (92%) increased by 8.2% in 2017 or 11.9 million by electric utilities could be less than last will see their budgets either staying the tons. Output in Illinois grew by nearly 3 year, depending on demand and utility re- same or increasing over 2017. million tons to 46.5 million tons from 43.6 stocking. Coal stocks at the end of Septem- Obviously, it’s time for many opera- million in 2017. ber 2017 were a paltry 145 million tons, tors to retool after several years of limited Coal production is a function of con- well below the 175-million to 200-million investment. When asked how they would sumption and the amount of coal con- comfort zone.

January/February 2018 www.coalage.com 19 forecast 2018 continued

Figure 4 — Current Spot Prices for Coal ($/ton) Btu/lb lb SO Dec 13 Dec 14 Dec 15 Dec 16 Dec 17 2 Northern 13,000 3.0 $68.00 $65.30 $48.95 $45.75 $46.20 Central Appalachia 12,500 1.2 $63.58 $56.10 $43.50 $48.05 $59.85 Illinois Basin 11,800 5.0 $46.15 $44.70 $32.60 $35.50 $32.60 8,800 0.8 $11.50 $11.55 $10.90 $11.00 $12.10 Western Bituminous 11,700 0.8 $35.95 $37.75 $40.65 $40.90 $41.10 Source: EIA/Platts Coal Outlook Weekly Price Survey

If production has grown and utility coal decreased from $35.50/ton in 2016 In 2016, natural gas-fired electricity demand is flat and stocks are down, that to $32.60/ton. Prompt prices for Powder generation surpassed coal-fired genera- can mean only one thing: exports have River Basin coal increased to $12.10/ton tion for the first time, accounting for an increased. Year-to-date (YTD) through the from $11/ton — the highest price in five estimated 34% of total electricity gener- end of September, coal exports totaled 68.7 years. Similarly, prices for Western Bitu- ation compared with coal’s 30% share. million tons compared to 40.9 million tons minous improved to their highest levels Its share of U.S. electricity generation, in 2016. On average, exports have grown in five years ($41.10/ton). however, largely depends on prices. The 10 million tons per quarter over 2016 and Contract prices for met coal remained price of natural gas delivered to electric coal operators will likely export anoth- high in 2017, at roughly $200/metric ton power plants averaged $3.02 per million er 21 million to 24 million tons or more (mt). High-Vol A prices, according to Platts, British thermal units (MMBtu) in 2017, by the end of the year, which would amount currently stand at $214.50/mt. Some Aus- compared to $2.40/MMBtu in 2016. In to roughly 90 million tons. Of that YTD ex- tralian and Canadian met coal mines have January, the U.S. benchmark Henry Hub port mix, 40.4 million tons were metallur- signaled they were having problems re- natural gas spot price averaged $3.88/ gical coal compared to 29.3 million tons in cently and others are stepping in to fill the MMBtu, up $1.06/MMBtu from Decem- 2017. A total of 28.3 million tons of steam gap. The benchmark coking coal contract ber. EIA expects natural gas prices to coal were exported (YTD September 2017) pricing for 2018 is expected to be $170/mt, moderate in the coming months, based and that compares to 11.6 million tons however, some expect first-quarter pricing on a forecast of record growth in natural during the same period a year ago. to climb as high as $220-$230/mt with the gas production. EIA expects Henry Hub Spot prices for coal have started to recently reported supply disruptions. spot prices to average $3.20/MMBtu for improve (see Figure 4). Reaching its high- est level in four years, spot prices for Cen- tral Appalachian coal improved to $59.85/ Figure 6 — What will be the single most expensive item the mine ton by the end of 2017 from $48.05/ton in purchases in 2018? ...... What will it cost, in round fi gures? 2016. Spot prices for Northern Appala- chian coal (NAPP) had also increased to Conveyor System ...... $14,000,000 $46.20/ton from $45.75/ton at the end Continuous Mining Equipment ...... $10,000,000 of 2016. Spot prices for Illinois Basin Coal Crusher ...... $9,000,000 Figure 5 — On a scale of 1 (not Ventilation Shaft ...... $9,000,000 very important) to 5 (extremely important), how do the following Longwall Rebuilds (2) ...... $4,000,000 concerns rate? Haul Truck ...... $4,000,000 1. Power Plant Regulation (4.3) Proximity Systems ...... $3,000,000 2. Politics & Policy (4.1) Continuous Miner...... $2,000,000 3. Prices (4.0) New Wheel Loader ...... $400,000 4. Economy (3.6) Loader ...... $100,000 5. Bonding & Permits (3.5) 6. Other (3.2) Trucks/Trailers ...... $50,000 7. Retiring Workforce (3.1) New Equipment...... $50,000 8. Limited Capacity (2.5) Rebuild Parts ...... $25,000

20 www.coalage.com January/February 2018 forecast 2018 continued

Figure 7 — Survey Demographics

all of 2018. In 2019, EIA forecast prices in U.S. coal demand over the course of ern Powder River Basin (PRB) coal rose will average $3.08/MMBtu. In its latest the year. approximately 5% in 2017, despite overall earnings report, Peabody Energy said load, natural gas and total coal demand on average every $0.20/MMBtu move- Major Coal Producers Remain Cautious all decreasing. As a result, they believe ment in the price of natural gas equates Discussing U.S. coal markets, Peabody southern PRB coal inventories declined to an approximate 25-million-ton change Energy said utility consumption of south- approximately 9 million tons from the

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22 www.coalage.com January/February 2018 forecast 2018 continued prior year to 54 days of maximum burn. an ideal position to take advantage of the about international thermal and met- Meanwhile, winter weather continues to recent rebound in thermal export markets allurgical coal markets, he said exports reduce stockpile levels across the U.S. to and the international demand for cross- continue to support participation by U.S. lows not seen for three or four years. Look- over metallurgical coal. producers. ing ahead to 2018, however, Peabody En- Warrior Met Coal, America’s premier Anticipating increased export sales in ergy projects plant retirements to reduce publicly traded “pure-play” met coal pro- 2018, Alliance said it has already booked baseload coal demand by approximately ducer, also noted the market volatility for commitments to export approximately 5.9 25 to 35 million tons. high-quality premium met coal, reflect- million tons this year. As a result, Alliance Citing similar stats about PRB stocks, ing higher Chinese demand and ongoing is planning to increase production and Cloud Peak Energy said customers remain disruptions to supply from U.S. and Aus- sales volumes by 5% to 6% in 2018, which uncertain about forecast weather and nat- tralian miners. Warrior said it has capital- along with continued strong cost per- ural gas prices and many utilities appear ized on the strong pricing environment formance by its mines and an improving to be continuing to delay purchasing coal by selling down higher than normal in- price environment, they are expecting to to have flexibility to switch between coal ventory levels. drive solid results from its coal operations. and gas electricity generation based on Alliance Resource Partners, one of They currently have price and volume near-term pricing. the leading coal producers in the Mid- commitments for approximately 85% of In the East, CONSOL Energy has capi- west said they are entering 2018 poised for their 2018 production. talized on the uptick in demand and pric- continued strong operating performance. The message from this group of coal ing for NAPP coal in 2017. “We are now “We expect improved demand from our industry leaders is that domestic demand greater than 95% contracted for 2018, 70% domestic customers in the first half of could go either way, depending on stocks contracted for 2019, and 24% contracted 2018 as recent cold weather across much and the price of natural gas. They are see- for 2020, assuming an annual produc- of the U.S. has resulted in increased coal ing strength in the export markets, which tion rate of approximately 27 million tons burn and reduced utility stockpiles,” said helps with pricing and volume. Noting going forward,” said Jimmy Brock, CEO Joe Craft, president and CEO, Alliance Re- these market influences, 2018 is shaping CONSOL Energy. CONSOL Energy is in source Partners. Echoing what Brock said up to be an interesting year.

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January/February 2018 www.coalage.com 23 2018 u.s. longwall census Longwall Production Rebounds in 2017 The numbers of overall faces drops by two, but production increases by nearly 10%

by steve fiscor, editor Table 1—Longwall Installations by Parent Company (2017-2018) The U.S. coal industry saw overall produc- Company Ala. Colo. Ill. Mont. N.M. Ohio Pa. Utah Va. W.Va. Wyo. Total tion grow in 2017 and so did America’s long- Alliance Resource Partners 1 2 3 wall mine operators. After two consecutive American Energy (MEC) 1 1 years of decline, total longwall production Arch Coal 1 2 3 experienced a substantial increase. Col- Blue Mountain Energy 1 1 lectively, U.S. longwall installations pro- Canyon Consolidated Resources 2 2 duced 167.8 million tons in 2017, a 9.5% CONSOL Energy 5 5 increase over the 153.2 million tons pro- Contura Energy 1 1 duced in 2016. While this is a positive signal, Coronado Coal 1 1 the sector remains well below the 207-mil- lion-ton level it achieved in 2014. Drummond 1 1 The total number of longwall faces ERP Compliant Fuels 1 1 dropped from 44 to 42. That figure in- Foresight Energy (MEC) 4 4 cludes two tronah mines in Wyoming. Mission Coal (ERP) 1 1 2 Two longwall faces were removed: Amer- Murray American Energy (MEC) 6 6 ican Coal’s New Future mine in Illinois Pacific Minerals 1 1 and Ohio Valley’s Powhatan No. 6 in Ohio. Panther Creek Mining 1 1 Year-on-year, the total number of longwall Peabody Energy 1 1 mines dropped from 39 to 37 as five mines Signal Peak Energy 1 1 operated two longwall faces each. Solvay Chemicals 1 1 The top three longwall operations pro- Tronox Alkali Co. 1 1 duced more than 10 million tons per year UtahAmerican Energy (MEC) 1 1 (tpy) from two longwall faces. Foresight Warrior Met Coal 3 3 Energy’s Sugar Camp mine set a U.S. record Westmoreland Coal 1 1 for annual coal production from a longwall Total 5 3 5 1 1 1 6 3 1 13 3 42 installation with more than 12.8 million tons in 2017. Last year, 16 longwall instal- yon Consolidated Resources. Bowie’s long- Longwall ownership in the U.S. re- lations produced at a capacity of 5 million wall assets in Utah, the Sufco No. 1 mine mained relatively unchanged. Robert E. tpy or more, compared to 11 in 2016. and the Skyline mine, are now listed under Murray and the companies he controls A couple of new/old names appear on Canyon Consolidated Resources. (American Energy, American Coal Co., the 2017 U.S. Longwall Census, including During August, ERP Compliant Fuels Foresight Energy and MEC) operate 12 CONSOL Energy, Canyon Consolidated established Mission Coal to manage its U.S. longwall faces spread across Illinois (4), Resources and Mission Coal. In November, coking coal assets, which include the Oak Ohio (1), Utah (1) and West Virginia (6). CONSOL Energy spun off its coal mining Grove longwall mine in Alabama and the CONSOL Energy operates three mines and group as CONSOL Mining Corp., changed Pinnacle No. 5 longwall mine and the Maple five faces in Pennsylvania. Alliance Re- its name to CNX Resources Corp., but re- Eagle operations in West Virginia. The Pinna- source Partners, Arch Coal, ERP and War- tained its ticker symbol CNX on the New cle mine cuts coking coal from a thin seam rior Met Coal own three longwall faces. York Stock Exchange (NYSE). At the same and operates the only plow face in the U.S. With 13 faces, West Virginia remains the time, the newly formed CONSOL Mining A few longwall mines posted some longwall leader, followed by Pennsylvania Corp. changed its name to CONSOL Ener- outstanding production figures last year. (6), Alabama (5) and Illinois (5). Looking at gy Inc. and its common stock trades on the Warrior Met Coal in Alabama has been the numbers, the average U.S. longwall mine NYSE as CEIX. That’s a really long-winded reaping the long overdue rewards of a operating in coal produced 4.94 million tpy way of saying CONSOL Energy has been coking coal rally. Year-on-year, the com- in 2017 compared to 4.23 million tpy in 2016. renamed CONSOL Energy from the coal pany’s Blue Creek No. 4 mine quadrupled On average, it has a cutting height of 93.8 industry’s perspective. production and its Blue Creek No. 7 mine in., a panel width (or face length) of 1,414.2 In November, Murray Energy Corp. increased production by nearly 1.8 million ft, and a panel length of 12,804.4 ft. Last (MEC), Bowie Resource Partners, Javelin tons. Alliance Resource Partners’ Hamil- year, those numbers were 94.3 in., 1,236 ft, Global Commodities and Grupo CLISA ton County longwall mine in Illinois dou- and 12,321.5 ft, respectively. A total of nine formed a strategic partnership called Can- bled its production. longwalls have face lengths of 1,500 ft or

24 www.coalage.com January/February 2018 2018 u.s. longwall census continued greater. A total of 15 longwalls operate in ity to increase shield speeds to consistently have placed a great deal of attention on the Pittsburgh No. 8 seam. The maximum improve production rates. PLC program- equipment rebuilds to achieve maximum overburden on average reaches 1,136.4 ft. ming systems are giving them the ability to production with positive results and limit- Except for a few mines in Utah, most are make immediate changes to adjust cutting ed equipment delays. developed with three entry gates. Using heights, speeds and chain tension. Another important aspect of longwall an 1,805-hp double-drum, ranging-arm The MEC longwall team said they are mining is consistently keeping development shearer, they take a 39.3-in. cut. The average currently using run-of-face automation ahead of longwall production. The MEC yield setting on the shield is 1,037.4 tons. and gate-end automation is something longwall team said a revolution is needed for All of the faces except for four are high volt- they are working toward. Mining condi- gate entry development. They are currently age (4,160 volts). The Ohio County face in tions on the gate ends are a limiting factor considering a JOY Flexible Conveyor Train West Virginia has the longest face: 1,547 when it comes to full automation. They are for gate development in late 2018. They have ft. At 22,500 ft, Signal Peak Energy’s Bull using Joy ASA systems on all of the MEC compared the results between full-face and Mountains mine in Montana has the lon- shearers in the Midwest. place-change units and believe that place gest panel. The West Elk mine in Colorado When it comes to maintenance, the change operations continue to be the most operates a 2,805-hp shearer. MEC longwall team has focused on the efficient and rapid means of gate entry de- tracking of components to maximize velopment. Despite some improvements, The Pace of Change availability. MEC has an advantage over such as VFD controls on section equipment, Operating a dozen longwalls in several other operators as they build and repair a the system of gate entry development re- coal districts, MEC has developed quite lot of their own equipment. They said they quires further innovation. a bit of longwall mining expertise. Coal Age discussed several of the trends taking Table 2—Longwall Coal Production (2016-2017) place with the Murray Energy longwall Prod. Prod. % team. They cited increased panel widths U.S. Longwall Mines 2017 2016 Change and lengths as the most significant chang- Foresight Energy Sugar Camp* 012,812,197 011,443,835 -012.0 es taking place in the U.S. longwall sector. CONSOL Energy Bailey* 012,123,618 012,056,165 -000.6 During the last few years, this has required Murray American Energy Marshall County* 011,653,535 010,523,671 -010.7 modifications to increase horsepower for CONSOL Energy Enlow Fork* 009,180,468 009,638,245 00-4.7 the motors on the armored face conveyor Murray American Energy Harrison County 007,131,341 006,586,715 -008.3 (AFC) and the shearer to increase cutting Alliance Resource Partners Tunnel Ridge 006,988,112 006,593,227 -006.0 Contura Energy Cumberland 006,769,916 006,959,706 00-2.7 speeds. They also mentioned that more Foresight Energy Mach Mining 006,335,835 005,401,420 -017.3 attention has been directed to preven- Alliance Resource Partners Hamilton County 006,129,347 003,017,507 -103.1 tive maintenance to sustain consistent Murray American Energy Marion County 006,114,799 004,370,847 -039.9 productivity throughout the panel. These Murray American Energy Ohio County 006,046,582 006,265,878 00-3.5 wider panels also required attention to Canyon Consolidated Resources Sufco No. 1 005,883,975 005,375,171 -009.5 ventilation, water control and supplemen- Signal Peak Energy Bull Mountains 005,883,820 005,609,042 -004.9 tal support for the bleeder entries. American Energy Corp. Century Mine 005,676,639 004,983,672 -013.9 Coronado Coal Buchanan 005,352,731 004,946,468 -008.2 Through years of experience and bet- Westmoreland Coal Co. San Juan South 005,327,442 004,330,717 -023.0 ter planning, they have minimized long- Warrior Met Coal Blue Creek No. 7* 004,864,828 003,067,565 -058.6 wall move times for these larger panels. Arch Coal West Elk 004,821,281 004,156,405 -016.0 The average traditional move for the MEC CONSOL Energy Harvey 004,805,208 002,971,179 -061.7 operation takes eight to 12 days. The MEC Canyon Consolidated Resources Skyline 004,374,500 004,538,021 00-3.6 longwall team said its Midwest operations Murray American Energy Monongalia County 003,889,889 003,895,290 00-0.1 require 10 to 14 days with some transpor- Peabody Energy Twentymile 003,842,798 002,590,392 -048.3 Arch Coal Leer 003,381,442 003,572,262 00-5.3 tation differences. When equipment is Alliance Resource Partners Mountain View 002,114,258 002,014,302 -005.0 available, they strive to achieve a walk over Drummond Co. Inc. Shoal Creek 002,078,760 001,833,398 -013.4 move, which is two to four days. Blue Mountain Energy Deserado 001,906,894 001,335,131 -042.8 Technology has definitely influenced Panther Creek Mining American Eagle 001,872,752 002,041,927 00-8.3 operations. Upgrades with the variable Warrior Met Coal Blue Creek No. 4 001,849,387 00,0343,771 -438.0 frequency drives (VFDs) have increased Pacific Minerals Bridger 001,715,801 001,542,452 -011.2 UtahAmerican Energy Lila Canyon 001,629,311 001,586,720 -002.7 the reliability for conveyors and the stage- Arch Coal Mountain Laurel 001,509,675 001,478,926 -002.1 loader conveying system. The MEC long- Mission Coal (ERP) Oak Grove 001,403,123 001,474,588 00-4.8 wall team said they are now seeing 5% to Mission Coal (ERP) Pinnacle No. 50 001,237,167 00,0921,453 -034.3 15% reduction in revolutions that will ex- ERP Federal Mining Federal No. 2 001,103,582 001,507,373 0-26.8 tend the life of the sprockets and convey- Ohio Valley Coal Powhatan No. 6 NA 002,815,831 -NA or chains. They also reported improved AmCoal New Future NA 001,406,428 -NA reliability with shield electrics saying that Total U.S. Longwall Production 167,811,013 153,195,700 -009.5 shield automation has given them the abil- *Each of these mines operate two longwall faces.

January/February 2018 www.coalage.com 25 2018 u.s. longwall census continued to face 4,160 2,300 4,160 4,160 4,160 4,160 4,160 4,160 4,160 4,160 4,160 4,160 4,160 4,160 Voltage Line Line Line Line Power Power Power Power Service Service Service Service Service Service Machine Machine Machine Machine Machine Machine controls Electrical Electrical Electrical Electrical Electrical Intermountain Intermountain Intermountain Intermountain Joy Joy Cat Cat Cat Cat Cat JWR JWR JWR Crusher Longwall Cat/AEMI Cat/AEMI Cat/AEMI Associates JWR JWR JWR Cat/AEMI Cat/AEMI Cat/AEMI Caterpillar Caterpillar Caterpillar Caterpillar Caterpillar width, speed 1,388 mm, VFD 1,388 mm, VFD 1,388 mm, VFD 1,388 mm, VFD Stageloader type 1,388 mm, 464 fpm 1,220 mm, 410 fpm 1,388 mm, 464 fpm 1,350 mm, 480 fpm 1,300 mm, 420 fpm 1,588 mm, 520 fpm 1,300 mm, 420 fpm 1,300 mm, 420 fpm 1,300 mm, 420 fpm 1,424 mm, 385 fpm Joy Mining Machinery Joy Mining Machinery Joy Mining Machinery 376 450 371 371 371 370 371 371 305 371 305 384 305 320 860/ 1,000 1,000 1,000 1,000 1,188/ 1,088/ 1,188/ 1,000/ 1,000/ 1,000/ 1,000/ 1,000/ 1,342/ width (mm)/ speed (fpm) Face conveyor Cat Cat Cat Cat Cat Cat Cat Cat type 38 TIB 2x900 JWR with CSTs JWR with CSTs 48 TIB 3x1,650 48 TIB 3x2,200 48 TIB 3x1,650 48 TIB 3x2,200 50 TIB 3x1,650 52 TIB 3x1,900 48 TIB 3x2,200 42 TIB 3x1,200 42 TIB 3x1,000 42 TIB 3x1,000 42 TIB 3x1,200 48 TIB 3x1,000 Face conveyor JWR with Jahnel (strand, motors) Longwall Associates Joy Mining Machinery Joy Mining Machinery 42 TIB 2x1,250, 1x1,900 NA Joy Joy Joy Joy Joy Joy Cat Cat Cat Cat Cat Cat Cat 910 955 ZMJ yield 1,130 1,200 1,271 1,200 1,320 1,200 1,200 1,300 1,327 1,243 1,300 (tons) Roof support 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2,000 system Haulage Ultratrac Ultratrac Ultratrac Ultratrac Ultratrac Ultratrac Ultratrac Jumbotrac Jumbotrac Jumbotrac Jumbotrac Jumbotrac Jumbotrac Jumbotrac Total hp Total Shearer Joy 7LS2 Joy 7LS5 Joy 7LS5 Joy 7LS5 Joy 7LS5 Joy 7LS2A Joy 7LS2A Joy 7LS2A Joy 7LS1D DDR 2,360 DDR 1,371 DDR 2,054 DDR 2,805 DDR 2,054 DDR 1,813 DDR 2,360 DDR 2,054 DDR 1,218 DDR 2,360 DDR 1,813 DDR 1,813 DDR 1,625 DDR 2,091 Joy 7LS-1D Joy 7LS-1D Joy 7LS-1D Cat EL3000 Eickhoff SL750 42 30 42 42 42 42 42 42 36 36 36 42 42 39.4 Depth of cut (inches) 3 3 3 3 3 3 3 3 4 3 4 4 4 3 gate No. of entries (ft) 850 900 500 900 600 900 785 400- 600- 200- Over- 1,200 1,000 1,600 1,650 1,600 1,600 1,150 1,400- burden (ft) 8,000 Panel length 4,000- 7,000- 4,000- 22,500 11,000 19,000 19,000 16,000 15,000 19,500 14,500 13,000 15,000 13,000 12,300 11,000 10,250- 12,000- (ft) 800 width 1,250 1,400 1,400 1,080 1,400 1,400 1,400 1,115 1,000 1,060 1,040 1,088 1,000 Panel 84 84 96 84 84 85 69 80 74 74- 74- 96- 74- 84- 156 132 156 108 132 height Cutting (inches) 72 72 96 72 76 45 53 53 55 84- 84- 50- 84- 204 168 216 108 132 102- Seam height (inches) E B No. 6 No. 6 No. 6 No. 6 No. 6 Seam Herrin Herrin Herrin Herrin Herrin Wadge Mary Lee Mary Lee Mary Lee Mary Lee/ Mammoth Blue Creek Blue Creek Blue Creek/ Blue Creek/ Blue Creek/ Company (parent) Signal Peak Energy Mine Blue Mountain Energy Arch Coal Mach Foresight Energy Sugar Camp M-Class Foresight Energy Sugar Camp Viking COLORADO (3) Deserado MONTANA (1) MONTANA Bull Mountains ALABAMA (5) Blue Creek No. 4 Foresight Energy Twentymile Peabody Energy Elk West ILLINOIS (5) Deer Run (Idle) Foresight Energy Alliance Resource Partners Hamilton County Coal No. 1 Warrior Met Coal Warrior Blue Creek No. 7 West Warrior Met Coal Warrior Blue Creek No. 7 East Shoal Creek Warrior Met Coal Warrior Oak Grove Mission Coal Drummond Co. Inc.

26 www.coalage.com January/February 2018 2018 u.s. longwall census continued to face 4,160 4,160 4,160 4,160 4,160 4,160 4,160 4,160 2,300 4,160 4,160 4,160 Voltage MCI Line Line Line Line Line Line Line Line Line Power Power Power Power Power Power Power Power Power Service Service Machine Machine controls Electrical Joy Joy Cat Cat Cat Cat Cat Cat Cat Cat MEC AEMI Crusher MEC AEMI Caterpillar Caterpillar Caterpillar Caterpillar Caterpillar Caterpillar Caterpillar Caterpillar width, speed Stageloader type 1,294 mm, 485 fpm 1,188 mm, 528 fpm 1,350 mm, 500 fpm 1,188 mm, 528 fpm 1,388 mm, 464 fpm 1,188 mm, 528 fpm 1,300 mm, 475 fpm 1,388 mm, 450 fpm 1,024 mm, 320 fpm 1,388 mm, 420 fpm 1,188 mm, 525 fpm 1,188 mm, 525 fpm Longwall Associates Joy Mining Machinery 357 378 350 378 374 378 370 340 263 371 371 371 988/ 988/ 890/ 988/ 988/ 988/ 988/ 1,000/ 1,100/ 1,342/ 1,042/ 1,000/ width (mm)/ speed (fpm) Face conveyor Cat Cat Cat type AEMI AEMI Cat/ PF6 Cat/ PF6 Cat/ PF6 Cat/ PF6 42 TIB 3x800 48 TIB 3x1,900 50 TIB 3x1,150 48 TIB 3x1,900 48 TIB 3x1,650 48 TIB 3x1,900 42 TIB 2x1,200 42 TIB 2x1,000 48 TIB 3x1,900 48 TIB 3x1,900 48 TIB 3x1,900 Face conveyor 48 TIB 3x 1,900 (strand, motors) Joy Mining Machinery Joy/Longwall Associates Cat/Longwall Associates Joy Joy Joy Joy Joy Cat Cat Cat Cat Cat Cat 969 969 700 800 969 MEC yield 1,024 1,160 1,005 1,100 1,007 1,096 1,005 (tons) Roof support AEMI AEMI 2000 2000 2000 2000 2000 2000 2010 2000 2010 2000 2000 2000 system Haulage Ultratrac Ultratrac Ultratrac Ultratrac Jumbotrac Jumbo Track Jumbo Track Jumbo Track Jumbo Track Super GearRack Total hp Total Shearer Joy 7LS5 Joy 7LS2 Joy 7LS2 Joy 7LS2A Joy 7LS2A Joy 7LS2A Joy 7LS2A Joy 7LS1A Joy 7LS2A Joy 7LS2A Joy 7LS2A Joy 7LS1D DDR 1,290 DDR 1,666 DDR 2,092 DDR 1,666 DDR 1,940 DDR 1,666 DDR 1,813 DDR 1,666 DDR 1,371 DDR 1,666 DDR 1,666 DDR 1,666 42 42 39 42 42 42 32 36 32 42 42 42 Depth of cut (inches) 4 3 3 3 3 3 3 2 2 3 3 3 gate No. of entries (ft) 900 600 400- 800- 500- 400- 400- 800- 400- 600- 600- 600- Over- 2,000 1,000 1,400 1,800 1,400 1,600 1,000 1,200 1,000 1,000 1,400- burden (ft) 4,000 6,000 5,000 Panel length 2,400- 6,800- 11,500 12,180 12,500 12,300 10,942 15,000 12,000 12,000 12,000 (ft) 700 850 530 width 1,501 1,000 1,501 1,110 1,500 1,500 1,580 1,520 1,520 Panel 70 89 90 72 90 88 88 96- 96- 68- 96- 156 156 144 120 102 120- height Cutting (inches) 76 72 72 61 72 84 72 72 60- 84- 84- 62- 62- 68- 56- 72- 62- 62- 200 216 200 156 136- 144- Seam height (inches) No. 3 No. 8 No. 8 No. 8 No. 8 No. 8 No. 8 No. 8 No. 8 Seam Lower Upper Fruitland Hiawatha Sunnyside Pittsburgh Pittsburgh Pittsburgh Pittsburgh Pittsburgh Pittsburgh Pittsburgh O’Connor A Pocahontas MEXICO (1) Company (parent) Mine Coronado Coal NEW San Juan South (3) UTAH SUFCO No. 1 Canyon Consolidated Resources Skyline PENNSYLVANIA (6) PENNSYLVANIA Bailey - Dry Ridge Bailey - Crabapple BHP Billiton CONSOL Energy CONSOL Energy Harvey OHIO (1) Century Mine Canyon Consolidated Resources VIRGINIA (1) Buchanan Cumberland American Energy CONSOL Energy UtahAmerican Energy Lila Canyon Contura Energy Enlow Fork - F Side CONSOL Energy Enlow Fork - E Side CONSOL Energy

January/February 2018 www.coalage.com 27 2018 u.s. longwall census continued to face 2,300 4,160 2,300 4,160 4,160 4,160 4,160 4,160 4,160 4,160 4,160 4,160 4,160 4,160 4,160 2,300 Voltage MCI Line Line Line Line Line Line Line Line Power Power Power Power Power Power Power Power Service Service Service Service Service Service Service Machine Machine Machine Machine Machine Machine Machine controls Electrical Joy Joy Joy Joy Joy Cat Cat Cat Cat AEMI AEMI AEMI Crusher Longwall Cat/AEMI Cat/AEMI Cat/AEMI Associates Cat Cat AEMI AEMI Cat/AEMI Cat/AEMI Cat/AEMI Caterpillar Caterpillar Caterpillar width, speed Stageloader type 1,220 mm, 415 fpm 1,388 mm, 350 fpm 1,200 mm, 525 fpm 1,294 mm, 443 fpm 1,388 mm, 477 fpm 1,200 mm, 525 fpm 1,200 mm, 525 fpm 1,300 mm, 475 fpm 1,200 mm, 550 fpm 1,294 mm, 385 fpm 1,294 mm, 443 fpm 1,388 mm, 423 fpm 1,300 mm, 525 fpm 1,200 mm, 312 fpm 1,200 mm, 455 fpm 1,188 mm, 466 fpm Joy Mining Machinery Joy Mining Machinery Joy Mining Machinery Joy Mining Machinery Joy Mining Machinery Joy Mining Machinery 270 320 365 337 330 365 365 370 350 268 340 357 365 229 337 366 890/ 988/ 950/ 988/ 988/ 1,000/ 1,000/ 1,100/ 1,000/ 1,000/ 1,100/ 1,000/ 1,000/ 1,000/ 1,000/ 1,000/ width (mm)/ speed (fpm) Face conveyor Cat Cat type AEMI AEMI AEMI 42 TIB 3x700 38 TIB 2x700 34 TIB 2x800 LW Associates LW LW Associates LW 48 TIB 3x1900 LW Assoiciates LW 48 TIB 3x1,200 48 TIB 3x1,900 42 TIB 3x1,000 42 TIB 2x1,000 48 TIB 3x1,900 48 TIB 3x1,900 48 TIB 3x1,000 42 TIB 2x1,072 48 TIB 3x1,073 42 TIB 2x1,200 48 TIB 3x1,900 42 TIB 3x1,000 Face conveyor (strand, motors) Joy/LW Associates Joy/LW Cat/LW Associates Cat/LW Longwall Associates Longwall Associates Joy Mining Machinery Joy Mining Machinery Joy Mining Machinery Joy Mining Machinery Joy Joy Joy Joy Joy Cat Cat Cat Cat Cat Cat Cat Cat Cat 862 800 893 890 840 865 870 982 862 815 715 yield 1,005 1,271 1,040 1,040 (tons) JSST-1,020 FAMUR/Cat Tunnel Ridge Tunnel Roof support AEMI AEMI AEMI 2000 2000 2000 2000 2010 2010 2010 2000 2000 2000 2000 2000 Chain system Haulage Ultratrac Ultratrac Ultratrac Ultratrac Ultratrac Ultratrac Jumbotrac Jumbo Track Indirect Drive Indirect Drive Super GearRack Super GearRack Jumbo GearRack Jumbo GearRack DDR Total hp Total Shearer Joy 7LS5 Joy 7LS5 Joy 7LS1A Joy 7LS2A Joy 7LS1A Joy 7LS1A Joy 7LS1A Joy 7SL1A Joy 7LS2A Joy 7LS1A Joy 7LS1D Joy 7LS1D Joy 7LS1D Joy 7LS1D DDR 1,330 DDR 1,625 DDR 1,880 DDR 1,625 DDR 2,360 DDR 1,880 DDR 1,880 DDR 1,880 DDR 1,855 DDR 2,360 DDR 1,880 DDR 1,330 DDR 1,853 DDR 1,625 Plow 1,080 CAT EL3000 CAT Cat GH 1600 7 36 42 42 42 34 42 42 42 42 38 42 42 42 42 36 Depth of cut (inches) 3 3 3 3 3 3 3 3 3 4 3 3 3 3 3 3 gate No. of entries (ft) 750 800 400 700 750- 700- 800- 600- 320- 600- 600- 600- 800- 600- 500- 300- Over- 1,400 1,000 1,000 1,600 1,000 1,000 1,150 1,250 1,500 1,300 1,300 1,100 burden (ft) 8,500 8,750 9,000 7,779 9,400 9,000 5,000 8,000 Panel length 5,000- 6,000- 3,100- 16,200 13,118 10,658 10,433 11,816 11,481 10,000 16,000 (ft) 625 750 850 600 width 1,050 1,020 1,402 1,200 1,415 1,500 1,500 1,105 1,000 1,547 1,000 1,200 Panel Legend: DDR 2,000 means double-drum ranging arm shearer with 2,000 hp installed. Cutting machines reported are all shearer type unless otherwise indicated. Legend: DDR 2,000 means double-drum ranging arm shearer with hp installed. Cutting machines reported 88 64 87 84 92 98 98 96 50 90 84 72 96- 72- 48- 78- 86- 68- 132 132 108 120 height Cutting (inches) 96 50 92 96 96 72 72 90 50 90 84 72 96- 54- 48- 78- 96- 86- 62- 132 132 108 144 Seam height (inches) 17 17 VFD—variable frequency drive; SS—single strand; TIB—twin strand inboard; 42 TIB 2 x 1,000 means 42-mm chain, twin strand inboard, two 1,000-hp motors. *Note: AEMI=American Equipment and Machine Inc. VFD—variable frequency drive; SS—single strand; TIB—twin strand inboard; 42 TIB 2 x 1,000 means 42-mm Bed Bed D41 No. 8 No. 8 No. 8 No. 8 No. 8 No. 8 No. 3 No. 8 No. 8 Eagle Seam Lower Upper Alma & Freeport Pittsburgh Kittanning Pittsburgh Pittsburgh Pittsburgh Pittsburgh Pittsburgh Pittsburgh Pittsburgh Pocahontas Cedar Grove Company (parent) Federal No. 2 ERP Compliant Fuels Mine Harrison County Westvaco Marion County Solvay Chemicals WEST VIRGINIA (13) American Eagle ERP Compliant Fuels Green River Leer Arch Coal Murray American Energy Tronox Alkali Co. Tronox Marshall County East B Marshall County West A Marshall County West Monogalia County Mountain View Murray American Energy Murray American Energy Murray American Energy Murray American Energy Alliance Resource Partners WYOMING (3) Mission Coal Ohio County Pinnacle No. 50 Ridge Tunnel Murray American Energy Pacific Minerals Mount Laurel Arch Coal Bridger Alliance Resource Partners

28 www.coalage.com January/February 2018 safety training THE ABCs of KSAs Assessing the self-escape knowledge, skills and abilities of coal miners

by cassandra hoebbel, michael j. brnich and margaret e. ryan

What simple step can help to prevent a • In light of training regulations that “Make sure you have a mine emergency from becoming a mine are now a decade old, how confident good up-to-date map and disaster? Preparation. are miners in their ability to self-es- Mine emergencies can happen at any cape in the event of an emergency? know the escapeways moment. Although all mines and mine out of there right off the emergencies are unique, being equipped Identifying Critical Self-escape KSAs bat. . . if the guys . . . that with an easily adaptable set of knowledge, Prior NIOSH research, the National Research died in the f ire knew skills and abilities (KSAs) can help under- Council 2013 report, “Improving Self-Es- their escapeways . . . and ground coal miners prevent a dangerous cape From Underground Coal Mines,” and knew where their situation from becoming a tragedy. multiple industry reports have addressed self-rescuers were, they The Mine Improvement and New the need for improved self-escape train- Emergency Response Act of 2006 (MIN- ing and assessment that emphasizes task would have made it out.” ER Act) strengthened existing safety and mastery over the completion of time-based — Jim Behling, from the 2017 health training regulations and intro- training requirements. To address this need, documentary, “Remember Wilberg” duced new measures aimed at improving under a NIOSH contract, the Group for Or- emergency preparedness and response ganizational Effectiveness (gOE) and Apti- “Remember Wilberg” is a documentary in underground coal mines. Although the ma Inc. partnered to conduct a formal task film produced under a grant from NIOSH, MINER Act also required non-specified as- analysis to identify the tasks critical for suc- written and directed by Elaine Cullen, and sessment of the self-escape KSAs of miners, cessful self-escape. The primary goal of this produced by the UTA Film School. there is no standard protocol dictating how work was to provide detailed descriptions of to teach or evaluate these competencies. all tasks critical to successfully self-escape. Key Results Now more than 10 years later, the Na- The protocol was reviewed and approved by Survey results suggest that, despite unit- tional Institute for Occupational Safety the NIOSH Institutional Review Board and ed efforts to improve health and safety and Health (NIOSH) expanded its research found to be in compliance with the Paper- training by researchers and industry alike, to answer these important questions: work Reduction Act by the Office of Man- there are still many gaps in critical self-es- • What are the critical self-escape com- agement and Budget. cape KSAs among mineworkers. petencies that all miners need in or- Figure 1 displays the 28 items included der to be prepared to respond to an Assessing Gaps in Critical Self-escape on the survey along with the percentage of emergency? KSAs in Miners hourly and salaried mineworkers who re- To identify gaps in the critical self-escape port they are not fully confident in each KSAs among mineworkers, NIOSH de- of the self-escape tasks. For example, as veloped a survey using 28 of the critical shown in Figure 1: self-escape tasks identified in the task • 23% of the hourly workers surveyed analysis. Because standard self-escape reported less than full confidence in competency and assessment protocols are their ability to demonstrate or ex- yet to be developed and real-world perfor- plain how to properly don a self-con- mance is difficult to assess, mineworker tained self-rescuer (SCSR). confidence was used as a “proxy” to mea- • 40% reported being less than fully sure competence. Participating miners confident about where to report in were asked, “On a scale of 0-100%, how the event of an emergency. confident are you that you could correctly • Less than half reported full confidence demonstrate or explain the following (KSA) in their ability to explain the chain of to a brand new miner?” command for reporting an emergen- In late 2016, NIOSH researchers visit- cy, or how to read mine map symbols. ed eight mines and collected surveys from When reviewing these results, it is es- 895 volunteer mineworkers. To the authors’ pecially important to note the wording One of 895 underground coal mineworkers knowledge, this is the first study to assess of the question itself. The question intro- who volunteered to participate in NIOSH’s gaps in the critical self-escape KSAs from the duced no complicating conditions (stress, self-escape survey study. perspective of the mineworkers themselves. smoke, real emergency, etc.), so the re-

30 www.coalage.com January/February 2018 safety training continued sponses reflected how confident each min- er is in his or her ability to correctly perform or explain these tasks to a new miner under normal, non-threatening conditions. This, along with other issues related to collecting self-reported data (e.g., potential concerns about confidentiality of answers and over- rating of self-confidence), suggest these results could actually be viewed as “best- case scenario” estimates of confidence. This could signify that results might, in fact, overestimate levels of self-escape compe- tency among this sample of mineworkers. Importantly, it might not be realistic to expect that every mineworker be 100% confident in each and every self-escape task included on the survey. However, these results provide a clear indication that min- ers lack confidence in their own self-escape capabilities in multiple areas, and that there is significant room for improvement. After receiving results representing their miners, individual mine operators and safety managers were able to tailor their training to better address the gaps in KSA confidence. Although the overall study results may not be generalizable to the underground mining population at large, these results (See Figue 1) can help to give mine operators, safety managers and indi- vidual miners everywhere an idea of where gaps in self-escape KSAs might exist.

Improving Critical Self-escape KSAs in Miners: What You Can Do Now Despite the gaps in critical self-escape KSAs reported here, the good news is that every mine can immediately begin working on increasing worker proficiency in the “basic” knowledge critical to self-escape, including: Figure 1—Percentage of mineworkers out of 895 surveyed who are not fully confident in their • Where the mine’s SCSR caches are ability to correctly demonstrate or explain critical self-escape knowledge, skills and abilities. located. • Where the mine’s escapeway maps the crew pre-shift meetings or via informal a reminder of how important it is for mines are located. “quizzes” or “spot checks” during the work- to continuously review training materials • Where to report in the event of a mine day. These brief exercises can also serve to assess the KSAs of their workforce. Defin- emergency. increase proficiency in map reading and the ing and developing critical competencies • Where the mine’s refuge alternatives correct identification of mine map symbols. will help to ensure mineworker readiness to are located. Gaps in KSAs that require procedural avert potential tragedies. • Where the mine’s tether lines are skill are being further studied by NIOSH in located. an effort to develop evidence-based training For more information, contact [email protected]. • The chain of command for reporting recommendations for mine operators and a mine emergency. safety trainers for dissemination in 2019. In Disclaimer • The location of the mine’s primary the interim, Table 1 outlines currently avail- The findings and conclusions in this paper and secondary escapeways. able resource materials for critical KSAs, in- are those of the authors and do not neces- This critical knowledge can be easily cluding a number of available training aids. sarily represent the views of NIOSH. Men- and briefly covered every shift or periodical- As NIOSH continues to research self- tion of any company or product does not ly, as the working sections move, as part of escape preparedness, these results serve as constitute endorsement by NIOSH.

January/February 2018 www.coalage.com 31 safety training continued

Table 1—Resource materials available for training miners in critical knowledge, skills and abilities (listed from lowest to highest reported confidence).

Knowledge, Skills and Abilities Resources and How to Cover/Review Your mine’s emergency Your mine’s emergency response plan. response plan (ERP) Discuss during crew pre-shift or safety meetings; discuss during quarterly mine escape training. Chain of command for reporting Your mine’s emergency response plan; your mine’s firefighting and evacuation plan. a mine emergency Escape and Evacuation: A Miners’ Education and Training Toolbox. Penn State Miner Training Program. Available at: https://sites.psu.edu/minertraining/msha/escapeandevacuation/. Review during pre-shift crew or safety meetings; ask miners where they should report an incident. How to construct a barricade Virginia Department of Mines, Minerals, and Energy (DMME)—Barricading. Available at: www.dmme.virginia.gov/dm/AccidentsAndFatalities/SafetyBulletins/CarbonMonoxideHalt.pdf. Discuss during crew pre-shift or safety meetings; discuss during quarterly mine escape training. Ventilation/smoke leakage Your mine’s ventilation plan. Escape From a Mine Fire. Video deals with the experiences of two miners in escaping an underground coal mine fire in 1988. Both discuss the importance of paying close attention to alarms and warnings. Available at: https://arlweb.msha.gov/Streaming/VintageClips.asp. Escape From Farmington No. 9: An Oral History—NIOSH Publication No. 2009-142D. Available at: https://www.cdc.gov/niosh/mining/works/coversheet1628.html. Advanced Mine Rescue Training—Coal Mines. Module 3—Mine Ventilation. Mine Safety and Health Administration. Available at: https://arlweb.msha.gov/MineRescue/Training/IG7.pdf. Train miners to recognize disaster change in ventilation, smoke, etc. Discuss key ventilation points during crew pre-shift or safety meetings; annual refresher training; during quarterly mine escape training. How to reestablish ventilation Your mine’s ventilation plan. Discuss during crew pre-shift or safety meetings; new miner and annual refresher training. How to read mine map symbols Underground Coal Mine Map Reading Training—NIOSH Publication No. 2009-143c. Available at: www.cdc.gov/niosh/mining/works/coversheet1825.html. Cover during annual refresher training or other safety training sessions. What alarms mean Your mine’s firefighting and evacuation plan. Escape From a Mine Fire. Video deals with the experiences of two miners in escaping an underground coal mine fire in 1988. Both discuss the importance of paying close attention to alarms and warnings. Available at: https://arlweb.msha.gov/Streaming/VintageClips.asp. Review during crew pre-shift or safety meetings. Emphasize importance of recognizing and re- sponding to audio/visual alarms. Your own role in your mine’s Your mine’s ERP. emergency response plan (ERP) Discuss during crew pre-shift or safety meetings; discuss during quarterly mine escape training. When to construct a barricade Your mine’s firefighting and evacuation plan. Virginia Department of Mines, Minerals, and Energy (DMME)—Barricading. Available at: www.dmme.virginia.gov/dm/AccidentsAndFatalities/SafetyBulletins/CarbonMonoxideHalt.pdf. Discuss during crew pre-shift or safety meetings; discuss during quarterly mine escape training. Your mine’s communication and Your mine’s ERP. tracking system (CT) Discuss during crew pre-shift or safety meetings; discuss during quarterly mine escape training.

How to operate your mine’s Your mine’s RA deployment and operation instruction materials; manufacturer’s training material. refuge alternative (RA) How to Operate a Refuge Chamber: A Quick Start Guide—NIOSH) Publication No. 2011-100. Available at: www.cdc.gov/niosh/mining/works/coversheet1695.html. Refuge Chamber Expectations Training—NIOSH Publication No. 2010-100. Available at: www.cdc.gov/niosh/mining/works/coversheet455.html. Discuss during crew pre-shift or safety meetings; discuss during quarterly mine escape training; use listed NIOSH RA operations training resources. If or when to fight a fire Fire Response Preparedness for Underground Mines—NIOSH) Publication No. 2006-105. Available at: www.cdc.gov/niosh/mining/works/coversheet749.html. Cover during regular firefighting drills, during annual refresher training.

32 www.coalage.com January/February 2018 safety training continued

How to fight a fire Your mine’s firefighting and evacuation plan. Fire Response Preparedness for Underground Mines - NIOSH Publication No. 2006-105. Available at: www.cdc.gov/niosh/mining/works/coversheet749.html. Firefighting—a collection of mine gas training materials in PowerPoint and other formats. Available at: http://miningquiz.com/powerpoints/firefighting.htm. Advanced Mine Rescue Training—Coal Mines. Module 5—Fires, Firefighting, and Explosions. Mine Safety and Health Administration. Available at: https://arlweb.msha.gov/MineRescue/Training/IG7.pdf. Train miners to fight fire based on their role(s) in mine’s firefighting and evacuation plan; con- duct hands-on firefighting training yearly with all miners. Lifeline symbols Lifeline Tactile Signal Flashcards. Available at: www.cdc.gov/niosh/mining/works/cover- sheet1826.html. Review during pre-shift crew or safety meetings; use lifeline section with all tactile symbols and quiz miners. You can also use the NIOSH flashcard resource to quiz miners. Where your mine’s SCSR caches Your mine’s escapeway maps; your mine’s quarterly escape training. are located Review during crew pre-shift or safety meeting; ask miners the locations of caches; review locations using escapeway map. Where your mine’s escapeway Your mine’s escapeway maps; your mine’s quarterly escape training. maps are located Review during pre-shift crew or safety meeting. Ask crews where maps are kept in their work area. Where tether lines are located Your mine’s firefighting and evacuation plan. Discuss during crew pre-shift or safety meetings; discuss during quarterly mine escape training. Where your mine’s refuge Your mine’s escapeway maps; your mine’s quarterly escape training. alternative(s) (RA) is/are located Review during crew pre-shift or safety meeting, ask miners the locations of RAs; review locations using escapeway map.

January/February 2018 www.coalage.com 33 safety training continued

What to expect when wearing Expectations Training for Miners using Self-Contained Self-Rescuers in Escape from Under- an SCSR ground Coal Mines—Journal Occupational Environ Hygiene, 2008 Oct; 5(10):671-677. Avail- able at: www.cdc.gov/niosh/mining/works/coversheet985.html. I Can’t Get Enough Air! Proper Self-Contained Self-Rescue Usage. DHHS (NIOSH) Publication No. 99-160. Available at: www.cdc.gov/niosh/mining/works/coversheet343.html. Self-Contained Self-Rescuers (SCSR’s) Interactive Training Course—Inspection, Maintenance, and Use. Mine Safety and Health Administration. Available at: https://arlweb.msha.gov/interactivetraining.htm. Review/discuss during quarterly escape training; annual smoke training. If possible, allow miners to breathe from a live SCSR. When to enter your mine’s refuge When Do You Take Refuge? Decision-making During Mine Emergency Escape—NIOSH Publi- alternative (RA) cation No. 2011-177C. Available at: www.cdc.gov/niosh/mining/works/coversheet1556.html. Harry’s Hard Choices: Mine Refuge Chamber Training—NIOSH Publication No. 2009-122. Available at: www.cdc.gov/niosh/mining/works/coversheet1838.html. Man Mountain’s Refuge: Refuge Chamber Training Instructor’s Guide and Trainee’s Problem Book— NIOSH Publication No. 2011-195. Available at: www.cdc.gov/niosh/mining/works/coversheet1679.html. Seek Refuge: Your Third Line of Defense. Penn State Mining Training Program. Available at: https://arlweb.msha.gov/Streaming/SCSRClips.asp. Discuss during crew pre-shift or safety meetings; discuss during quarterly mine escape training; use listed NIOSH RA use decision-making training resources. How to test roof conditions Your mine’s roof control plan. 80-hour Underground Miner Pre-Employment Training Program Study Guide—Unit 12 Roof/ Rib Control. West Virginia Office of Miners’ Health, Safety, and Training. Available at: www.wvminesafety.org/PDFs/80%20HR.Underground%20Study%20Guide.pdf. Roof Control. MSHA Catalog of Training Products. Cat. No. 36. Available at: Mine Safety and Health Administration, email—[email protected]. Discuss during crew pre-shift or safety meetings; new miner and annual refresher training. Where to report in the event of a Your mine’s firefighting and evacuation plan. mine emergency Location varies by mine. Review in pre-shift crew or safety meetings; during quarterly escape training.

How to identify an explosive Mine Gases—a collection of mine gas training materials in PowerPoint and other formats. atmosphere with a gas meter Available at: http://miningquiz.com/powerpoints/mine_gases.htm. Advanced Mine Rescue Training—Coal Mines. Module 2—Mine Gases. Mine Safety and Health Administration. Available at: https://arlweb.msha.gov/MineRescue/Training/IG7.pdf. Review gas monitor during crew pre-shift or safety meetings; annual refresher training; during quarterly mine escape training. Location of your mine’s primary Your mine’s escapeway maps. and secondary escapeways Review during pre-shift crew or safety meeting. Using escapeway map, ask crew members to show the route they would travel from their work area. How to use a tether line Your mine’s quarterly escape training. Discuss during crew pre-shift or safety meetings; discuss during quarterly mine escape training; ask trainees to demonstrate using a tether line. How to use nonverbal communication Nonverbal Communication for Mine Emergencies—NIOSH Publication No. 2012-104. (hand/cap lamp symbols) Available at: www.cdc.gov/niosh/mining/works/coversheet461.html. Discuss during crew pre-shift or safety meetings; review during quarterly mine escape training; use listed NIOSH nonverbal communication training resource.

When to don an SCSR Predetermined talking points that might include: first sign of smoke, rising CO levels, dropping O2 levels. Self-Contained Self-Rescuers (SCSR’s) Interactive Training Course—Inspection, Maintenance, and Use. Mine Safety and Health Administration. Available at: https://arlweb.msha.gov/interactivetraining.htm. Cover during quarterly escape training, pre-shift crew or safety meetings; annual refresher training.

How to properly don an SCSR Your mine’s quarterly escape training; annual smoke training; your mine’s annual refresher training. Self-Contained Self-Rescuers (SCSR’s) Interactive Training Course—Inspection, Maintenance, and Use. Mine Safety and Health Administration. Available at: https://arlweb.msha.gov/interactivetraining.htm. SCSR Transfer Process. Collection of links for streaming media for various SCSR models. Mine Safety and Health Administration. Available at https://arlweb.msha.gov/Streaming/SCSRClips.asp. Review steps during crew pre-shift or safety meetings; review and provide feedback during hands-on training; annual refresher training.

34 www.coalage.com January/February 2018 Coal Preparation Society of America

conference & exhibition april 23-25, 2018 lexington, ky

Three days of workshops and presentations Two days of exhibits and events One of the best venues for a coal industry gathering

The Coal Preparation Society of America (CPSA) brings back the latest in coal processing technology expertise, equipment and networking events to the Lexington Convention Center. Now as a biannual event, the coal prep industry returns to the city equidistant between the Illinois Basin and the Appalachian coal fields.

A day of workshops walks you through coal handling and processing and the keynote session the next day provides valuable insight as to where the U.S. coal industry is headed. Technical presentations on new plant construction and modifications, coal cleaning and advanced coal byproducts give ideas on how to grow this industry into the future.

The exhibition has over 24,000 square feet filled with the latest equipment and services to help you be more productive and profitable. More detailed information is available at: www.coalprepsociety.org or call Mel Laurila, CPSA Executive Director at +1 859 797 8119 keynote presentations

18 months after the election, where does coal go from here? -Heath Lovell, Vice President – Public Affairs for Alliance Coal Mr. Lovell has been with Alliance since 2006 and held several other positions including general manager of River View Coal, LLC and general manager of Webster County Coal, LLC

U.S. coal export boom - here to stay? -Ted O’Brien, who joined Xcoal in 2017 with a role split between Capital Markets and Marketing, where he evaluates global investment opportunities in mines and infrastructure, and supports Xcoal’s core business of marketing coking coal and thermal coal to customers around the world Full day of workshops (7 Professional Development Hours) Three technical sessions (Another 6 PDH’s) + keynote All for a full conference registration of only $199 that includes admission to the exhibition Register at: www.coalprepsociety.org

Workshop 1 - Conveyors 101 Presented by: Jerad Heitzler, Foundations Training Manager Martin Engineering

This workshop will give participants practical solutions and the correct actions to resolve problems that are typical with belt conveyors. The goal is to teach par- ticipants how and why to operate conveyors cleaner, safer and more productive. Saving facilities money on lost material, premature equipment failure, unnecessary clean up cost, unnecessary environmental scrutiny and preventing conveyor accidents will be key to our discussion Topics include: • How splices effect system performance • Conveyor belt storage • Prevention of belt damage • Root cause analysis of belt mistracking and proper tracking techniques

Workshop 2 - Coal Prep 101 Presented by: Barbara Arnold, President, PrepTech, Inc.

This workshop is intended for equipment manufacturers, utility personnel, coal purchasers, new plant hires or other support staff who would like to develop a better understanding of the priciples of coal preparation. It covers a broad range of topics including a review of coal properties important to utilization, coal sizing, cleaning and dewatering operations.

Equipment sections will provide descriptions of common types of coal preparation processes and the factor that influence their performance. A fundamentals section will show participants how to interpret characterization data obtained from particle sizing and float-sink (washability) analyses. Ancillary topics include coal sampling and analysis, coal handling and wear materials.

schedule of events monday tuesday wednesday april 23 april 24 april 25 exhibitor setup keynote session advanced coal byproducts 8am - 5pm 9am - 10am 9am - 11am conveyor workshop exhibit open exhibit open 10am - 1pm 10am - 5pm 9am - 2pm coal prep workshop new plant construction coal cleaning technologies 1pm - 5pm 2pm - 4pm 2pm - 4pm member’s night out 6pm - 10pm Two days of Technical Sessions Invited coal processing experts will: • Expand your knowledge of coal utilization, and • Present innovative new technology for coal cleaning Most importantly, they will answer your questions.

Session 1 : New Plant Construction and Modifications (Tuesday, April 24)

2:00 PM - Coal Froth Flotation: To Deslime or Not? With Columns or Conventional Cells? Peter Bethell, Senior Principal, Marshall Miller and Associates

2:25 PM - An Innovation Solution to Aging Infrastructure Raymond Perr, Director of Business Development, Industrial Resources, Inc.

2:50 PM - Deserado Preparation Plant Upgrade – Higher Capacity and Efficiency Surendra Jain* and Bill Lepro** *Vice Chairman, Daniels Company; **Surface Superintendent, BME Deserado Mine

3:15 PM - Common Pitfalls in Construction Contracts Barry G. Slaton, General Mine Contracting, Inc

3:40 PM - From Design to Operation, Impact of Marginal Met Coals Larry Watters and Chris Foley

Session II : Advanced Coal Byproducts (Wednesday, April 25)

9:00 AM - Energy Unbound CK Lane, COO, Arq

9:30 AM - Recovering Rare Earth Elements from Coal-Based Materials Mary Anne Alvin, NETL, Technology Manager, Rare Earth Elements

10:00 AM - Modular Energy Systems - Coal Based Energy Production for New Applications David Lyons, NETL, Acting Gasification TM

10:30 AM - Coal to Carbon Fibers Matthew Weisenberger, Associate Director, Carbon Fuels, CAER

Session III: Coal Cleaning Technologies (Wednesday, April 25)

2:00 PM - Novel Dense Medium Circuit Robert Hollis, President, Daniels Company

2:30 PM - Optimization of Large Diameter HM Cyclone Performance using Density Tracers John Nielson, FLSmidth Krebs

3:00 PM - Low Cut Point Spiral Faan Bornman, Wynand Erasmus and Jeantelle Rust, Multotec Process Equipment

3:30 PM - Impact of Ultrafine Slimes on Fine Coal Cleaning W.B. Wells, C.A. Noble and G.H. Luttrell, Mining and Minerals Engineering, Virginia Tech Exhibit CoalProTec exhibitor list (as of 1/25/18)

• Allmineral • Richwood Industries, Inc. • Alpha Control Fabrication & Mfg. • Rock & Coal Contruction • APC Analytics GmbH • SABIA • A.W. Chesterton • S&S Urethane & Ceramics • Balder Electric • Schurco Slurry Pumps • B.D.I. Screen • SEI Engineers, Inc. • Belt Tech • SGS North America • Buchanan Pump Service • SNF Mining • C.I. Thornburg • Somerset Coal International • Certified • System Controls, Inc. • Coal Preparation Society of America • TASSCO • Coal Age Magazine • United Central Industrial Supply • Conn-Weld Industries, Inc. • Weir Minerals - North America • Core & Main • World Coal Magazine • Cumi America, Inc. Ceramic Division • Daniels Company • Deister Concentrator Premier Sponsor • Derrick Corporation • Eastern Screens • Elgin Equipment Group • Eriez Manufacturing Company • FGX SepTech, LLC • FLSmidth Minerals Media Partners • Hardface Technologies by Postle • Hausner Hard Chrome, Inc. • JABO Supply • Johnson Industries • KM Specialty Pump & Systems • Lee Supply Company, Inc. Exhibit space is available at $1499 for a • Martin Engineering 10’x10’ booth. • McLanahan The exhibitor must be a corporate member of • Mechanical & Ceramic Solutions, Inc. the CPSA and can reserve space at: • Miller Contracting • Mineral Technology www.coalprepsociety.org • Mining People Magazine • MMD Mineral Sizing America, Inc. Under the events tab. • Partition Enterprises Space is allocated on a first come basis. • Phoenix Process Equipment • Polydeck Screen Corporation • PrepTech, Inc. • Quality Magnetite operating ideas

Controlling Compressor Vibration and Surge by jim slama

Controlling vibration and surge is one of the most critical aspects of keeping cen- trifugal and reciprocating compressors up and running. If improperly monitored and maintained, these types of compressors can experience frequent functional issues and ultimately shorten their life span. Vibration controls are essential con- cerning any kind of rotating equipment, and compressors are no exception. Re- garding reciprocating compressors, typ- ically the vibration sensing is not all that sophisticated. One will generally see a velocity measuring device, transmitting in inches per second, mounted to the block of a reciprocating compressor. As the vi- bration increases, the velocity of that vi- If it goes unnoticed, high vibration levels could severely damage a compressor. bration is going to increase along with it. This signal is then fed into a PLC or anoth- pletely replacing the compressor, and can 10,000-plus rpms in a centrifugal com- er comparable device. The signal is com- protect operations personnel from a dan- pressor. Consequently, bearings and vi- pared with a set of predetermined points. gerous situation in their plant. bration monitoring on these compressors In the industry, these points are referred is crucial. If there is uncharacteristically to as the “high” and the “high high.” An How does the velocity sensing work for a high vibration in this situation, it needs alarm is set to go off on the “high” to warn vibration control system in reciprocating to be caught and addressed or it will po- the operator that the vibration is starting compressors? tentially destroy the entire machine. With to exceed a velocity that is recommended. The signal produced by the velocity mea- centrifugal compressors, instead of moni- If the vibration does not level off or slow suring device is sent to a signal conditioning toring velocity in inches per second, there down, the “high high” point will be trig- device that generates a 4-20 milliamp signal are probes (x,y) called proximeters. These gered, which is programmed to shut down fed into a machine monitor or the plant measure the distance from the tip of the the compressor so it does not cause any monitoring system. The alarm shutdown probe to the shaft. Instead of technical- irreversible damage. is then programmed into the machine PLC ly measuring “vibration,” the proximeter or the plant’s distributed control system probes act as a distance-sensing device. What are some problems that can lead to (DCS). Alternatively, the signal conditioning Additionally, there is a keyphasor, which uncharacteristically high vibration in a re- device could have a contact closure. This monitors and provides a voltage pulse on ciprocating compressor? needs to be configured for an alarm and a once-per-turn-event. These three signals A common cause for high vibration is a a shutdown level. This will, in turn, have a (the x, the y and the keyphasor) are fed bad bearing. If a bearing is going out, it contact closure on the back. The contact into a signal conditioning box located near does not perform the task it needs to and closure sends a signal to the plant DCS or the machine, roughly 20 to 30 feet away. will ultimately need to be replaced. Anoth- the machine’s overall control system, letting The proximeter probes sense inductance. er common cause for high vibration is me- the system know it needs to shut down. Placed at each end of the shaft, the prox- chanical fasteners that have come loose imeter probes measure the radial location or were improperly torqued. For example, What about centrifugal compressors? of the shaft. The rotor on the compressor there is a mine setting where someone Centrifugal compressors are a little differ- may shift radially, causing major problems. fails to tighten valves properly on cylin- ent in how they are controlled. Typically, When everything is running properly, the der heads of a reciprocating compressor. one sees more high-end vibration mon- center of the shaft will stay centered con- Over time, these valves can vibrate loose. itoring systems installed on centrifugal sistently as its running. Once up to speed, However, if proper vibration controls are compressors. For reciprocating compres- the shaft will develop a high-pressure film implemented in a situation such as this, sors, the approach outlined above is effec- on the bearing. At this point, there can be protections are put in place. Although a tive. However, for centrifugal compressors, liftoff and the shaft will suddenly be ro- high-vibration shutdown can be costly, there is more rotation/potential vibration tating inside the journal bearing on a thin it is ultimately less expensive than com- at work. Equipment can be spinning at film of oil (1/10 of a millimeter). The prox-

January/February 2018 www.coalage.com 39 operating ideas continued

imeter probes can measure gaps down to Other than vibration, what is another type many cases, the thrust bearing in that op- 1/100 of a millimeter or even less. A good of critical control? posite thrust situation cannot handle this practice to avoid too much trouble with For centrifugal compressors, controlling because it is sized smaller than the main high vibration inside of centrifugal com- surge is a critical component. Surge oc- thrust bearing, often due to cost. Addi- pressors is to make sure that the lubrica- curs when there is no forward flow of gas tionally, the dry gas seals are slammed into tion system is operating properly. through the compressor and a reversal of and with the tolerances being merely a few The signal conditioning unit, which flow occurs. The gas that is being com- ten thousandths of an inch, they can be monitors and analyzes the proximeter pressed gets pushed backward through the severely damaged. Needless to say, surge probes, will generate a signal to a central centrifugal compressor. When this surge should be avoided and thus, anti-surge machine monitoring system. Each individ- (flow reversal) occurs, which can happen controls were created. ual model can be set with a specific “high” in milliseconds, the rotor is affected. It will Prior to anti-surge controls, surge was alarm and a “high high” shutdown, just as shift to one end in its normal running po- managed by running the compressor very described with the reciprocal compressors. sition. Then it will slam backward, and in far out on the curve, in a zone that was rel- atively inefficient. Then, an algorithm was invented that allows the operator to run the compressor up closer to the surge line, a more efficient operating point. However, events can happen quickly and if an opera- tor is running up close to the surge line, the compressor can be damaged. Anti-surge controls measure pressure, temperature and flow, and feeds that information into a special purpose computer complete with algorithms that monitor the operat- ing point of the compressor relative to the anti-surge line. This means when a fast condition occurs, and the operating point moves quickly to the surge line, the special purpose anti-surge controller will take spe- cific actions to open the recycle valve, al- lowing the discharge gas to flow to a lower pressure or bypass any downstream block- age and recycle back into the compressor. The anti-surge system is dependent on this valve located on the discharge of the compressor. The sensors and the comput- er determine where the operating point of the compressor is relative to the surge line, and if necessary, open the anti-surge valve. Vibration controls and anti-surge con- trols are crucial protection elements to keep reciprocating and centrifugal com- pressors operating effectively. Through monitoring and quick corrective actions, operators can effectively increase output, avoid unnecessary costs, and prolong the lifespan of compressors.

Jim Slama is senior systems engineer for Valin Corp., (www.valin.com), a technical solutions provider. Valin offers personal- ized order management, on-site field sup- port, comprehensive training and applied engineering services using automation, fluid management, precision measure- ment, process heating, filtration and fluid power products.

40 www.coalage.com January/February 2018 MINING MARKETPLACE Resource Center FREE TOOLS FOR YOUR CAREER SUCCESS. Free case studies, white papers, presentations, business forecasts, and more. All designed to help you do business better.

RESOURCES.MININGMARKETPLACE.COM suppliers news Gearless Technology for a Wider Range of Conveyors

ance. It is meeting eco-design and energy performance require- ments according to international standards to support mine site’s environmental approvals or certification. The new drive also con- sumes 5% less energy than the other installed drive. “The interest of LEAG in this pilot project mainly lies in the expectations related to higher efficiency, lower wear and hence less expenses for repairs and maintenance,” said Peter Scholze, head of service for open-pit mines, LEAG. “These results were ver- ified from measurements and analytics taken during operations in the past few weeks. At the same time, the project proves LEAG’s interest in a future-oriented and innovative technical approach. Thanks to the close cooperation between LEAG and ABB, the proj- ect could be finalized within a short period of time. Since commis- sioning has taken place, the drive has been running smoothly.” ABB has a new gearless solution for medium-powered conveyor drives. The on-site team was impressed with ABB’s quick and flaw- less project commissioning. ABB said the operations and main- ABB is making its gearless conveyor drive available for use on a tenance team also found the new system to be easy to learn, un- wider range of conveyor systems. Already proven on long, large derstand, and use, without any major difference in operation or overland systems, the newest drive is designed for medium-pow- handling when compared with the existing systems/technology. er-range motors (1 MW to 3 MW per motor) to make this technol- ogy economically feasible for a broad range of conveyor systems. Trimble Announces 2 New Grade Control Systems Fewer parts and new motor technology increase the reliabil- Trimble debuted its Earthworks grade control system for dozers ity and efficiency of the overall conveyor system. A permanent and the T10 Tablet at INTERMAT in Paris. Earthworks is Trimble’s magnet motor specifically designed for mining applications is a next-generation grade control platform for excavators and doz- core element of this system that contributes to its reliability and ers. Reengineered from the ground up, the it features intuitive, ability to perform in the most challenging environments. easy-to-learn software that runs on an Android operating system. The gearless conveyor drive system eliminates the gearbox State-of-the-art software and hardware gives operators of all skill from the drive. This reduces the number of main wear parts, so levels the ability to work faster and more officiently. less maintenance is needed, and lengthens the lifespan of the The Earthworks for dozers grade control configuration equipment. The expected lifespan for the drive train increases by mounts dual GNSS receivers on top of the cab to eliminate masts more than 10 years when compared to traditional geared systems, and cables traditionally located on the blade. The dual GNSS re- to a projected in-service life of 25 years. ceivers are ideal for steep slope work and complex designs with Other advantages include a considerable reduction in the tight tolerances. The new configuration keeps valuable receivers drive system’s footprint, so it can be installed in smaller spaces, safer and can also save time by reducing the time needed to re- less weight and a reduction in the instrumentation required to move and reinstall them each day. operate the system. The gearless drive design is also more energy Trimble’s Earthworks grade control application is built on the efficient, requiring less power, and operates more quietly, thus re- Android operating system and runs on a 10-inch (25.7 centime- ducing noise emissions, the company said. ter) Trimble TD520 touch-screen display. Colorful graphics, nat- In July, a pilot project to test this new gearless solution was in- stalled in collaboration with Lausitz Energie Bergbau AG (LEAG) in an open-pit lignite mine, Jänschwalde, located near Cottbus, Germany. It was installed on a high-capacity (15,000 metric ton per hour) discharge conveyor of a bucket-chain excavator in paral- lel with the existing geared drive. Both drives connect to the same pulley shaft to allow for exact benchmarking. The gearless solution has performed better in regard to dynamic accuracy and overall ef- ficiency than the existing traditional solution, according to ABB. The operational data demonstrate the advantages of the gear- The T10 Tablet (left) can be used for verifying ground levels. The less solution with less components. A gearless solution is more 10-inch touch screen (right) for the Earthworks system displays reliable (with a 50% lower failure rate) and requires less mainten- grades for the dozer operator.

42 www.coalage.com January/February 2018 suppliers news continued ural interactions and gestures, and self-discovery features make respiratory health screening through the software intuitive and easy to learn. Earthworks also allows questionnaires, spirometry testing and data files to be transferred to or from the office wirelessly and au- chest radiology when they enter the tomatically so that the operator is always using the latest design. coal mining workforce and periodically The Trimble T10 Tablet is a rugged, high-performance data throughout their tenure. processing platform that brings the advantages of fast comput- NIOSH oversees standards for ing power and a large screen to the field. The tablet was designed spirometry testing of coal workers. with military-grade ruggedness to withstand harsh conditions. NIOSH requires that electronic spi- The 10.1-inch, sunlight readable display is a multi-touch screen rometry data files include both flow- that works with a stylus, fingers or capacitive gloves. volume and volume-time graphs for The T10 uses a Microsoft Windows 10 operating system to run each forced expiratory maneuver. In ad- the Trimble SCS900 Site Controller Software. The system is ideal dition, spirometry test result data must for field work including measuring and verifying ground levels be transferable from testing facilities and site features; computing progress and material stockpile vol- and clinics to NIOSH. The CCS-200 has a umes; monitoring and conducting quality control; synchronizing The CCS-200 Plus Spirometer meets USB connection. design and field data via the Internet; and more. the NIOSH established standards and provides further benefits such as advanced reporting and analysis Jennmar Acquires Heintzmann and multi-year record keeping for each subject. The CCS-200 Plus Jennmar, and its affiliate Jennchem, purchased Heintzmann ultrasonic technology and “U-Tube” mouthpiece with no-touch Corp. USA, a mining supplier based in Cedar Bluff, Virginia. “We ejection provide for hygiene by avoiding contamination. are excited to integrate Heintzmann’s full line of steel supports To help occupational health professionals meet NIOSH re- and chemical products into our portfolio,” said Tony Calandra, quirements for coal worker health questionnaires, a subject read- executive vice president, Jennmar. “Heintzmann’s steel supports iness interview is built into the CCF-200 Plus software. The readi- include, beams, props, longwall support hardware, lattice girders, ness interview assists the occupational health testing professional and arch supports. These products will continue to be manufac- in ascertaining whether the coal miner should be tested that par- tured at the same plant in Cedar Bluff as they are incorporated ticular day and to ensure consistency of testing. The interview re- into the Jennmar Virginia portfolio, and sold by Jennmar Special- sults are saved with the subject’s spirogram for easy access later. ty Products. Heintzmann’s chemical support and roadway repair products will be folded into Jennchem’s offerings.” John Breedlove, president of Heintzmann, will act as general Providing Quality manager of the Cedar Bluff facility. All operations of the facility Products Since 1975 will continue and current customers and vendors will be notified of any changes, Calandra said.

Superior Expands Relationship With Belt Tech Superior Industries recently announced that Belt Tech Industrial has been named a full line dealer of its growing group of bulk process- ing and handling equipment. For two decades, the Indiana-based company has distributed Superior’s brand of conveyor components. Now, with this expanded partnership, Belt Tech will additionally sell and service Superior’s crushing, screening, washing and conveying equipment throughout Indiana, Kentucky and Tennessee. “This expanded partnership with Superior allows us to grow our business in a way that will ultimately benefit our customer base,” said Belt Tech CEO, Jordan Russell. “Material producers can expect the same reliable, high-quality customer service that Belt Tech is known for, but we can now support their processing and handling equipment needs as well. It’s great to be able to pro- vide that added value.” In addition to their home in Washington, Indiana, Belt Tech operates from service locations in Illinois and Kentucky.

NIOSH Approves Spirometer for Respiratory Checks The National Institute for Occupational Safety and Health (NIOSH) has approved the Benson Medical Instruments CCS-200 [email protected] Plus Spirometer for the Coal Workers’ Health Surveillance Pro- www.schurcoslurry.com (904)356-6840 gram (CWHSP). The CWHSP testing of U.S coal miners includes

January/February 2018 www.coalage.com 43 product news Mack Offers Driver-focused Interior

A new information and entertainment option, featuring a 7-in. touchscreen dis- play, is also available in the Granite mod- el, offering safe access to Apple Car Play, satellite radio, weather band radio and TomTom truck navigation. The display is also compatible with third-party backup camera systems. www.macktrucks.com

Conveyor Belt Repair Kit The new Devcon R-Flex Belt Repair Kit can be used to coat splices on rubber conveyor belts, protecting them from damage and preventing them from catching on wip- er systems. The kit contains everything needed to make rapid repairs to damaged heavyweight conveyor belts, allowing their The Mack Granite model features an all-new for readability and to prevent them from return to service in 90 minutes. interior developed to help drivers improve being worn off, even with repeated use. An easy-to-mix hybrid polymer, R-Flex productivity. Designed through detailed in- An automatic temperature control Compound has been formulated for in- put from thousands of drivers, the new inte- feature was added to the HVAC controls creased flexibility to withstand flexing of rior was developed to improve comfort and so that air temperature is maintained clip splices, the company said. It can also offer an ergonomic, driver-centric layout. once set by the driver. Cup holders and be used to repair holes, tears, gouges, and “The new Granite interior offers the storage bins are now in a new lower cen- damaged cold-vulcanized splices and to best working environment for vocational ter console, and both are easily removed protect hinged and solid plate fasteners. The drivers,” said Jonathan Randall, senior vice for cleaning. Multiple 12-volt and USB new formulation offers longer open times president of sales and marketing, Mack charging ports are available throughout in hot climates and improved resistance Trucks. “The Granite manages to handle the dash, and a new non-slip pad on top of to crack propagation. R-Flex produces a even the most difficult tasks with ease, and the dash features two USB charging ports. tough monolithic surface that protects clip it’s critical that drivers have a surrounding “Developing a more comfortable cab splices and prevents damage that exposed environment that makes it easier for them that was more ergonomic for the driver metal clips can cause to wiper systems. In to do their jobs in comfort.” was a priority for us when we designed the fact, R-Flex has been field-proven to extend One of the premier features of the lay- Granite interior,” said Tim Wrinkle, Mack the life of belt repairs, reducing subsequent out is the new flat-bottom steering wheel, construction product manager. “We lis- damage to the belt and other equipment, the a trucking industry first, enabling easier tened to the input from drivers, brought frequency of repairs, and plant downtime. entering and exiting of the cab, as well as their insight in and the result speaks for www.devcon.com offering more belly room, the company itself when you get in the seat.” said. The new steering wheel also gives the A new 5-inch full-color display of- driver a better view of the dash, and can be fering enhanced visibility and intuitive equipped with illuminated cruise control, navigation were added to the Mack Co-Pi- Bluetooth and audio system buttons. lot display behind the steering wheel. Mack Trucks said the new gauge clus- Co-Pilot is a convenient way for drivers ter and dash layout in the Granite model to monitor essential vehicle information, improves visibility and readability. Fre- such as engine and oil temperature, odo- quently used controls are within reach of meters, aftertreatment status, tire pressure the driver’s fingertips. Switches were repo- and more. The Pre-Trip Assistant function sitioned higher on the dash, and the Mack guides drivers through inspection points mDRIVE automated manual transmission and offers a single person exterior light shift pad is closer to the driver. The dash inspection mode. Co-Pilot controls are lo- Horizontal End Suction Pump panel can accommodate 18 easy-to-read cated on the updated right-hand steering The Vertiflo 1400 Horizontal End Suction switches, which have laser-etched labeling column stalk. Pump has a rugged heavy-duty cast iron

44 www.coalage.com January/February 2018 product news continued frame design that incorporates integral- Tires for Frigid Applications For enhanced electrical conductivi- ly cast support and ribbed mounting feet, BKT announced its winter ranges Earth-max ty, MIB also constructs each clamp from which assure a solid, dependable pump in- SR 22, Snow Trac and Earthmax SR 42 for a solid copper sheet. The clamp jaws are stallation and operation. One frame fits all OTR applications as well as Earth-max SR 33 serrated, and the clamps are assembled pump sizes. The frame has a back pull-out and Ridemax IT 696 for the industrial sector. with a heavy-duty, high-tension spring to design feature, which allows for easy inspec- The tires feature tread designed in specific ensure a good connection to the battery tion or service without disturbing the piping patterns for cold season applications, pro- terminal. The clamps are tested to hold 500 to the pump. The pump has external impel- viding traction on muddy or snowy surfaces, pounds. To optimize use of the booster ca- ler adjustment and the semi-open impeller the company reported. They offer maximum bles on the road or at job sites, the oil- and design accommodates passage of solids or grip, optimum braking response in any con- abrasion-resistant booster cables maintain fines. Capacities range up to 3,600 gpm with dition, safety, handling, riding comfort, re- flexibility in temperatures between -94° to heads of 275 ft and temperatures of 250°F. sistance and durability, BKT said. The ranges +198°F, according to the company. They are www.vertiflopump.com also offer top performance in normal condi- available in up to 25-ft lengths. tions on dry terrain. BKT’s Earthmax SR 22 www.msblind.org (G-2/L-2) is an all-steel radial tire specifically designed for graders and loaders operating in extreme winter conditions on ice or snow. It features excellent traction and stability due to its large, non-directional tread de- sign, which also ensures utmost safety and increased grip on wet surfaces or snow, the company reported. SNOW TRAC for skid steers is an ideal tire for operations on snow or ice due to the special tread design that eliminates the risk of slippage, providing at External Backstops the same time optimum driving comfort to U.S. Tsubaki Power Transmission launched the operator. The Earthmax SR 42 for haul the BS-F line of external backstops with trains is engineered to provide particular re- significant advances in performance sistance against cuts and wear, and to ensure Mining Solutions based on its innovative design. The com- safety at extremely low temperatures. Made in the USA pany spent many months testing and im- www.bkt-tires.com proving its backstop designs in response to data collected from customer visits, pro- duct inspections and in-house tests. A new and improved labyrinth seal de- sign extends the life of the product by mini- mizing the ingress of dust and contaminants. Tsubaki also uses synthetic grease in place of oil to eliminate the need for oil level checks, routine lubricant inspections, regular oil testing and the breather element — a path- way for contaminants and moisture. The new BS-F backstops are designed with the Earthmax SR 22 Earthmax SR 42 smallest envelope dimensions available in the market. This assures quick and easy field installation when replacing other manufac- Military Grade Jumper Cables turers’ backstops. A non-rollover cam design Mississippi Industries for the Blind (MIB) re- Mining Geosynthetic Solutions Provider offers the highest torque rating available. leased its heavy-duty military-grade booster www.ustsubaki.com cables. Developed by MIB for the U.S. Mil- HUESKER is your coal mining geosynthetic itary since 1984, MIB’s MIL-SPEC booster solutions expert. HUESKER engineers will be cables combine 1-gauge stranded cop- with you every step of the way to answer any questions, offer solutions, optimize safety, per welding-type cable with solid copper and ensure your coal mine is efficient and in clamps for enhanced electrical conductivity compliance with government regulations. and an efficient jump start. These cables are significantly thicker than standard 6-gauge jumper cables, and each clamp and cable HUESKER.us has a 600-amp minimum current rating.

January/February 2018 www.coalage.com 45 CONSULTANTS AND SERVICES CONTACT YOUR LOCAL SALES REPRESENTATIVES FOR ADVERTISING YOUR INFORMATION: CLASSIFIED Midwest/Eastern U.S. & Canada Victor W. Matteucci AD HERE 5931 Christopher Court Mentor, OH 44060, USA Tel: +1 440-257-7565 Fax: +1 440-257-6265 1 column x 3” space [email protected] Color: $510 Black & White: $360 Western U.S., Canada & Australia Frank Strazzulla 28 Lansdale Ct CONTACT YOUR SALES REP Ladera Ranch, CA 92694, USA TO BOOK A SPACE TODAY Tel: +1 949-459-1767 [email protected]

Germany, Austria & Switzerland Gerd D. Strasmann Strasmann Media-Promotion GmbH IDC-PBS is an explosives engineering consul- Berghausen 29 tancy. Intercontinental Development Corp. (IDC) consults and educates professionals worldwide YOUR CLASSIFIED D-42859 Remscheid, Germany on blast design and provides emulsion technol- Tel: +49 2191 931497 ogy and emulsion manufacturing equipment. AD HERE Founded by Cal Konya, Ph.D., in 1973, Precision Fax: +49 2191 931499 Blasting Services (PBS) provides miners with unbiased consulting services to reduce blasting [email protected] costs and increase efficiency. Its training semi- 1 column x 2” space nars and Training Academy are the “standard” used by industry and government worldwide. Color: $340 Scandinavia, U.K. & European IDC-PBS Black & White: $240 Colm Barry P.O. Box 189 Vallgaten 20, 234 32 Lomma, Sweden Montville, OH 44064 Tel: (440) 474-6700 CONTACT YOUR SALES REP Tel: +46 (0) 40 414178 E-mail: [email protected] TO BOOK A SPACE TODAY Fax: +46 (0) 40 414178 www.KonyaIndustries.com [email protected]

Japan Masao Ishiguro YOUR CLASSIFIED AD HERE I-Comm LLC 1 column x 1” space 2-29-1 Nakacho Color: $170 • Black & White: $120 Meguro City, Tokyo 153-0065 Japan Tel: +813 3719 0775 CONTACT YOUR SALES REP TO BOOK A SPACE TODAY [email protected]

FOR MORE INFORMATION VISIT WWW.COALAGE.COM

46 www.coalage.com January/February 2018 ADVERTISING INDEX

...... PAGE ...... PAGE ASGCO Manufacturing Inc...... 13 Longwall Associates Inc...... 17

Caterpillar ...... IBC Mining Media Int’l - Mining Magazines ...... 21

Coal Age Website ...... 29 Mining Media Int’l - Social Media...... 40

CoalProTec 2018 (CPSA)...... 35-38 Polydeck Screen Corp ...... 23

Columbia Steel...... BC Richwood ...... 22

Dyno Nobel...... 3 Schurco Slurry...... 43

Hitachi Mining ...... 9 SEMCO Publishing - Resource Center...... 41

Huesker...... IFC, 45 Strata Worldwide...... 33

Jennmar Corp...... 11 World Mining Equipment - WME ...... 47

Komatsu Mining Corp...... 15

This index is provided as an additional service. The publisher does not assume liability for errors or omissions.

January/February 2018 www.coalage.com 47 legally speaking Don’t Allow Bad Deeds to Go Unpunished

by erik dullea and mark savit

Mine Act is Safety Statute, Not the infraction and that they would have Guaranteed Employment Statute disciplined the miners regardless of any The potential of a complaint should not previous protected activities. To persuade discourage an operator from properly the judge, operators must show that the managing its workforce, and the Mine Act justifications were not just a pretext to does not preclude it either. mask the protected activity. The Mine Act and the Federal Mine Safety and Health Review Commission are Factors to Consider When Rebutting At some point, most mine operators have charged with protecting miners from retal- Allegations faced a dilemma where their company dis- iation who act in the interest of mine safe- The commission recognizes that pre- covers miners have been doing something ty, but the Mine Act and commission were text can exist when the justifications are improper. The alleged infraction justifies not intended to guarantee permanent em- weak, implausible or at odds with the op- disciplining the miners. After the com- ployment. Administrative Law Judge David erators’ normal business practices. Sec’y of pany investigates, it discovers the miners Simonton recently reiterated the boundar- Labor OBO Price v. Jim Walter Res. Inc. The raised safety concerns in the past. Those ies of the commission’s and its judge’s roles miners can challenge the justifications by concerns, however, are unrelated to the im- regarding labor-employment matters: showing they have no basis in fact, did not proper activity. Then, the human resourc- (The) commission does not sit as a actually motivate the discipline or were in- es or safety departments ask whether the super grievance board to judge the sufficient to support the level of discipline. contemplated discipline exposes the com- industrial merits, fairness, reason- Indirect, circumstantial evidence of pany to discrimination/retaliation com- ableness, or wisdom of an operator’s the operators motivation include proxim- plaints under § 105(c) of the Mine Act. employment policies except insofar ity in time between the protected activity The legal framework to establish a dis- as those policies may conflict with and the adverse action; operators’ knowl- crimination violation requires the miner to rights granted under section 105(c) edge of the protected activity; hostility or show that he or she engaged in a protected of the Mine Act. animus toward the protected activity; and activity, and suffered adverse employment (Sica v. Jacobs Field Services) operators’ disparate treatment of similar actions that were motivated at least in part infractions. Chacon, 3 FMSHRC at 2510. by the protected activity. (McNary v. Alcoa Rebutting the Complaint’s Allegations Addressing these factors is extremely World Alumina LLC) and Affirmative Defenses fact-specific and will vary with each case. The examples of protected activity are Operators can defeat a discrimination By way of example, in Sec’y of Labor OBO broad, and with the trigger for discrimi- claim by showing that no protected activity Hamilton v. American Mining & Tunnel- nation being the protected activity par- occurred or that the adverse action was in ing and Kreimier v. Coeur Alaska Inc., the tially motivated by the adverse action, the no part motivated by the protected activity. operators persuaded the judge that the departments’ concerns about a § 105(c) The challenge operators face here is Chacon factors were in favor of the opera- complaint are well founded. In these cir- that “direct evidence of motivation is rare- tors. In those cases, the operators rebutted cumstances, operators ask how they avoid ly encountered; more typically, the only any “proximity in time” links and any al- receiving a complaint? available evidence is indirect.” Sec’y of legations of hostility toward the protected The only way to guarantee not receiv- Labor OBO Chacon v. Phelps Dodge Corp. activities. Perhaps most important, the ing discrimination complaints is to not These are not the only options. Operators operators showed there was no disparate take any action against the miners who can also make an affirmative defense and treatment of the complainants as com- committed the infraction. If the company prove they were motivated solely by the pared to previous disciplinary events. takes no action, the miners do not suffer miner’s unprotected activity. (Bane v. Den- Bottom line: There are virtually any adverse action. ison Mines (USA) Corp.) no “black and white” situations, but op- However, that solution is as imprac- Keep in mind that affirmative defens- erators who consistently enforce their tical as preventing airlines from flying to es shift the burden of persuading the judge policies and document those actions, are guarantee an airline disaster will not oc- from the miners to the operators. It is not in the best position to defend themselves cur. Moreover, failing to discipline a miner enough for the operators to show that from discrimination complaints. for an infraction can be counter-produc- the miners deserved to be fired for their tive. Inaction may lead other employees to unprotected activity. The operators must Erik Dullea is a partner and Mark Savit is a believe they can ignore company policies prove that the justifications were plausi- senior counsel with Husch Blackwell. designed for their own safety or for the ef- ble, and that the operators considered the ficient operation of the business. miners deserving of discipline solely for This is part one of a two-part series.

48 www.coalage.com January/February 2018 POWERFUL TOOLS FOR SAFER LONGWALL MINING

Cat® longwall mining equipment and technologies are designed to improve your mine’s productivity and protect your most important assets — your people. We offer dust suppression solutions that improve air quality for a cleaner, safer work environment. We can help you keep track of employees, improve visibility and prevent shields from advancing while people are working on or near them. And automation allows your people to work safely away from the equipment on the clean-air side of the face. Many Cat automation and safety solutions can be retrofit to the equipment you already run. Reach out to us to learn more about how Cat longwall equipment can help make your operation safer. Visit cat.com/underground and send your questions by using the Contact Us form.

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