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DECEMBER 2012 VOL. 117 NO. 12 FEATURE ARTICLES FORESIGHT ENERGY/32 PRAIRIE STATE/38 28 China’s Deep Water Ports 32 Patton Rolls into Illinois The newest longwall mine in Foresight Energy’s fleet comes online 38 Clean Coal Strikes Back Prairie State and its adjacent underground mine begin generating reliable inexpensive power 44 New Technology Allows Mine Operators to Get Optimum Tire Performance Several tire manufacturers debut new systems and tires for ultra-class haul trucks MINING TIRES/44 PROXIMITY DETECTION/54 48 Silica and Respirable Content in Rock Dust Samples 54 Matrix, Alliance Resources and Preparing for New Proximity Regulations 60 Hot Dip Galvanized Steel Reduces Plant Maintenance Costs COAL IN THE NEWS 6 Southern Coal recalls and hires Appalachian miners 6 Peabody decides to close Willow Lake 6 Cloud Peak Energy sells Decker to Ambre Energy 7 Signal Peak lifts force majeure 10 Rhino plans new ILB operation 11 Court reviews Essar’s requests 14 THIS ISSUE Alliance sees markets improving 20 Japanese utilities to purchase U.S. coal from Oxbow 21 Federal Appeals Court upholds discrimination decision This month, Coal Age profiles Foresight Energy’s Deer Run 22 Midwest Generation faces possible bankruptcy longwall mine. On the cover, Deer Run longwall shearer 24 Coal transportation costs continue to climb operators Mike Ferrill (left) and Brian Hall. WORLD NEWS 7 VISA Steel & SunCoke Energy announce Indian joint venture Ship damages coal loading system at Westshore Terminals DEPARTMENTS 10 Bumi expects to retain business in Indonesia 4 Editorial 11 South African exports increase 6 Coal in the News Czech Coal makes offer for Pocerady power plant 7 World News Cliffs Natural Resources finalizes sale of its Sonoma mine 14 People 20 Mongolia pulls plan again to list coal mine 18 Dateline Washington Canada Coal evaluates Nunavut coal licenses 22 Calendar 21 ENRC announces plans for a railroad in Mozambique 28 Transport Tips 60 Operating Ideas 62 Suppliers News 64 Product News 69 Classified 72 Legally Speaking December 2012 www.coalage.com 1 JENNMAR We’re JENNMAR, a multi-national, fam- control products, and the eleventh is a ily-owned company that is leading the steel service center that supplies a way in ground control technology for steady flow of flat steel products. the mining, tunneling and civil con- Globally, we operate seven manufac- struction industries. For more than 40 turing facilities, with three located in years, our singular focus has been on Australia and four more in China, Chile, manufacturing products and creating Canada and Poland. strata control solutions that help keep JENNMAR continues to grow, but our those who work underground safe and focus will always be on the customer. more productive, from bolts and beams We will always provide exceptional, on- to channels and trusses to resin and going service that is second to none. rebar! And with manufacturing plants We feel it is essential to develop a close and distribution networks around the working relationship with every cus- world, we are uniquely positioned to tomer so we can understand their react to ground control needs any- unique challenges and ensure superior where, anytime. customer service. Our commitment to We currently operate eleven manu- the customer is guided by three words; facturing plants throughout the United Safety, Innovation and Service. It’s States. Of these eleven facilities, ten these words that form the foundation are related to manufacturing ground of our business. It’s who we are. Safety. Innovation. Service. Company Profile—Paid Advertisement editor’s note Labor Leaders Appeal to Obama www.mining-media.com uring late November, union leaders sent a letter to Mining Media International Editorial Office President Obama congratulating him on his win and D 11555 Central Parkway, Suite 401 asking him to treat coal fairly. The Environmental Protection Jacksonville, Florida 32224 U.S.A. Agency (EPA) is scheduled to issue a final New Source Phone: +1.904.721.2925 Performance Standard for Greenhouse Gas Emissions during Fax: +1.904.721.2930 December. If enacted without any changes, they reminded Editor-In-Chief—Steve Fiscor, [email protected] the president that all new base-load power plants would be forced to abandon coal in favor of natural gas. They said that Western Field Editor—Russ Carter, [email protected] BY STEVE FISCOR the agency’s efforts to control greenhouse gas emissions from European Editor—Simon Walker, [email protected] / EDITOR-IN-CHIEF power plants poses an extreme threat to “hundreds of thou- Latin American Editor—Oscar Martinez, [email protected] sands” of union workers employed in the utility, railroad, con- Associate Editor—Gina Tverdak-Slattery, [email protected] struction and related industries. The letter was signed by six trade union leaders Associate Editor & Photographer— representing transport workers, boiler makers, electricians, utility workers and coal miners. The letter was also sent to EPA Director Lisa Jackson, Energy Secretary Lee Buchsbaum, [email protected] Stephen Chu, Congress and AFL-CIO President Richard L. Trumka. Graphic Designer—Austin St. Clair, [email protected] In addition to reminding him that carbon capture and storage has not been commercially developed in the U.S. yet, they also state three primary concerns. For Mining Media International the first time in 40 years, the EPA is applying the same rules to coal-fired generation Corporate Office 8751 East Hampden, Suite B1 as it is to gas-fired power. Instead of being technology- or fuel-neutral, the pro- Denver, Colorado 80231 U.S.A. posed rule discriminates against new coal units. The rule places an unprecedented Phone: +1.303.283.0640 burden of addressing global climate change on one industry sector in one country. Fax: +1.303.283.0641 Where have these people been for the past four years? It is easy to understand President/Publisher—Peter Johnson, [email protected] that during the 2012 presidential campaign these left-leaning constituents would hide in the wings secretly hoping for a change in leadership that would support Vice President of Sales & Marketing—John Bold, [email protected] true job growth in the private sector. Where were they three years ago when the U.S. & Canada Sales Manager—Victor Matteucci, [email protected] EPA declared war on coal? Unlike some members of Congress, they were afraid to Scandinavia, UK and European Sales Manager—Colm Barry, [email protected] break rank and speak up for the people they represent. Instead, they left the German Sales Manager—Gerd Strasmann, [email protected] responsibility of challenging the EPA’s authority to the coal operators and the Classified Advertising—Norm Rose, [email protected] National Mining Association (NMA). Why did they have to copy Trumka? Why didn’t the leader of the largest labor Show Manager—Tanna Holzer, [email protected] group sign it? He is not simply some administrator that was promoted through the Ad Traffic Manager—Erica Freeman, [email protected] ranks to lead the AFL-CIO. He was the leader of the United Mine Workers of America prior to Cecil Roberts. Apparently he now has to be reminded by memo- randum that the coal industry is fighting to preserve its future. The reason is that labor and radical environmental activism cannot coexist. Environmental activists pursue agendas without regard for the cost to society. Factories close and the jobs migrate to regions that have fewer environmental con- siderations. Power companies can only pass the costs along to ratepayers. Coal Age, Volume 117, Issue 12, (ISSN 1040-7820) is published monthly by Mining Media Inc., 10 Sedgwick Drive, Englewood, Colorado 80113 (mining-media.com). Environmental activists assume that consumers (taxpayers) or the government Periodicals postage paid at Englewood, CO, and additional mailing offices. Canada (taxpayers) will pick up the tab just as it has for renewable energy. Unions need Post Publications Mail Agreement No. 40845540. Canada return address: Station A, PO jobs to sustain their membership and they, similar to the companies they support, Box 54, Windsor ON N9A 6J5, Email: [email protected]. Current and back issues and additional resources, including subscription request forms and an editorial have to remain cost competitive. Those companies need to be able to do business calendar, are available online at www.coalage.com. in a setting that treats them fairly and allows them to plan for the long term. SUBSCRIPTION RATES: Free and controlled circulation to qualified subscribers. Perhaps the president will hear their 11th hour plea, but it will probably fall on Non-qualified persons may subscribe at the following rates: USA and Canada, 1 year, deaf ears. $56.00, 2 year, $96.00, 3 year, $162.00, Student, $16.00, Outside the USA and Canada, 1 year, $77.00, 2 year, $137.00, 3 year, $225.00 surface mail (1 year, $145.00, 2 year, $257.00 airmail delivery). For subscriber services or to order single copies, write to Coal Age, 8751 East Hampden, Suite B1, Denver, CO 80231 USA; call +1.303.283.0640 (USA) or visit www.mining-media.com. ARCHIVES AND MICROFORM: This magazine is available for research and retrieval of select- ed archived articles from leading electronic databases and online search services, including Factiva, LexisNexis, and Proquest. For microform availability, contact ProQuest at 800-521- 0600 or +1.734.761.4700, or search the Serials in Microform listings at www.proquest.com. Steve Fiscor, Coal Age Editor-In-Chief POSTMASTER: Send address changes to Coal Age, P.O. Box 1337, Skokie, IL 60076 USA. [email protected] REPRINTS: Mining Media Inc, 8751 East Hampden, Suite B1, Denver, CO 80231 USA phone: +1.303.283.0640, fax: +1.303.283.0641, www.mining-media.com PHOTOCOPIES: Authorization to photocopy articles for internal corporate, personal, or instructional use may be obtained from the Copyright Clearance Center (CCC) at +1.978.750.8400.