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Cost-Effective Drilling Comes at a Price

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Cost-Effective Drilling Comes at a Price JANUARY 2012 VOL. 117 NO. 1 FEATURE ARTICLES NEWS/4 COMMUNICATIONS/26 20 PRB Coal Dust Control—Next Steps Kick Off in 2012 22 U.S. Coal Markets Soften with Weak Economy Growing international markets should supports supply-demand fundamentals 26 Through the Earth Communications MagneLink offers another option for emergency response 30 Cost-effective Drilling Comes at a Price— but Pays Big Dividends Recent conference highlights the information needed to plan, drill and shoot efficiently STOCKPILE MANAGEMENT/38 OPERATING IDEAS/52 34 Observe It, Measure It, Manage It Effective plant process control needs data—lots of data and sensor technology has taken big strides toward supplying the required information quickly and accurately 38 Automated Blending & Stockpile Management New power plant uses sophisticated system to manage coal deliveries from many local sources 42 Are New Rock Dust Standards Crushing You? MSHA’s new regulations once again challenge the status quo 50 Underground Coal Mine Safety Performance A decade of challenges and improvements 52 Service Improvements for Coal Crushers COAL IN THE NEWS THIS ISSUE 4 Westmoreland to acquire Kemmerer mine 4 EPA issues first national standards for mercury 4 Federal court suspends CSAPR This month, Coal Age attempts to predict what will happen 6 Peabody will appeal the ALJ decision on Willow Lake in 2012 with its Annual Forecast. 8 Signal Peak brings longwall production back online 10 Kentucky black lung law struck down 12 AEP reaches a deal for the Turk plant 14 Americas Energy attempts to reorganize after bankruptcy 16 Indiana utility regulator indicted 18 Statlers donate $34 million to WVU DEPARTMENTS WORLD NEWS 2 Editorial 4 Coal in the News 5 Shenhua to build Asia’s largest coal-fired power station 5 World News Newcastle ship queue hits 60 12 People Coal producers in Indonesia & Vietnam undertake new export strategies 14 Dateline Washington 16 6 Asciano wins 10-year Rio Tinto coal contract Calendar 52 Operating Ideas Cokal confirms Indonesian met resources 54 Suppliers News 8 Wesfarmers Premier Coal sale approved 56 Product News Illawarra Coal expansion trimmed 61 Classified 10 Bayan unit signs coal contract extension with Buma 64 Legally Speaking Ukraine coal production rises by 8.8% January 2012 www.coalage.com 1 editor’s note Organized Labor Finally Takes a Stand www.mining-media.com very year Coal Age surveys readers for its Forecast Survey. Mining Media International EMany of the questions remain the same, but the answers Editorial Office always differ, except for one. The survey always asks an open- 11555 Central Parkway, Suite 401 Jacksonville, Florida 32224 U.S.A. ended question: What’s the biggest issue facing the U.S. coal Phone: +1.904.721.2925 industry and how do we prepare for it? For three years now, the Fax: +1.904.721.2930 overwhelming answer has been excessive government regula- tion. It started with the MINER Act of 2006 under the Bush Editor-In-Chief—Steve Fiscor, [email protected] administration. Then, the Obama administration took control Western Field Editor—Russ Carter, [email protected] BY STEVE FISCOR in 2008 and began to apply more pressure using the European Editor—Simon Walker, [email protected] Environmental Protection Agency (EPA). Now, U.S. power gen- / EDITOR-IN-CHIEF Latin American Editor—Oscar Martinez, [email protected] erators have the train wreck of proposed environmental rules. Associate Editor—Gina M. Tverdak, [email protected] Granted, the coal mining industry has had to deal with more intense scrutiny from federal regulators regarding mine safety due to recent incidents. What angers people Associate Editor & Photographer— is seeing how this administration could potentially hamstring the country and future Lee Buchsbaum, [email protected] generations for the sake of environmentalism. Graphic Designer—Austin St. Clair, [email protected] An internal conflict is brewing among those on the left. Union workers have always been a core constituency for the Democrats. The Obama administration kowtows to Mining Media International the large important unions, such as those involved in the public sector, who are fun- Corporate Office neling taxpayer dollars to the regime. What happens when the president placates his 8751 East Hampden, Suite B1 environmental constituency by erasing thousands of jobs at mines, power plants and Denver, Colorado 80231 U.S.A. Phone: +1.303.283.0640 factories? The Democratic Party has a problem it does not like to discuss. Fax: +1.303.283.0641 Last month, Cecil Roberts, president and CEO of the United Mine Workers of America (UMWA) was the first to break rank. He finally spoke out after three years of President/Publisher—Peter Johnson, [email protected] watching the administration pound on this business. His quote appears as part of a Vice President of Sales & Marketing—John Bold, [email protected] larger news story on the EPA’s new national standards for mercury. He refers to U.S. & Canada Sales Manager—Victor Matteucci, [email protected] President Obama and the EPA as being “tone-deaf” when it comes to dealing with the Scandinavia, UK and European Sales Manager—Colm Barry, [email protected] coal community (See news, p. 5). Unfortunately, his statement leans more toward German Sales Manager—Gerd Strasmann, [email protected] social welfare when it should be talking about coal as a domestic source of low-cost energy. Nonetheless, Roberts has finally seen the light. Perhaps, the Obama adminis- Classified Advertising—Norm Rose, [email protected] tration will be hearing from the International Brotherhood of Electrical Workers, Show Manager—Tanna Holzer, [email protected] International Union of Operating Engineers, and maybe even the AFL-CIO. Ad Traffic Manager—Erica Freeman, [email protected] This is an election year. Who will organized labor support? Assuming they could not support a president who has declared war on coal, they would have to support a Republican candidate. To make their voices heard, they should start to rally around one of the Republican candidates prior to the coal state primaries. Coal exports are one of the few positives the industry has at this point, so Ron Paul and isolationism would not be a viable option. That leaves Mitt Romney, Newt Gingrich and Rick Santorum. Romney understands business, but could he could be a little cold-hearted Coal Age, Volume 117, Issue 1, (ISSN 1040-7820) is published monthly by Mining when it comes to dealing with organized labor. Newt is politically astute and has the Media Inc., 10 Sedgwick Drive, Englewood, Colorado 80113 (mining-media.com). Periodicals postage paid at Englewood, CO, and additional mailing offices. Canada means to effect change in Washington, but he is somewhat misinformed about the cli- Post Publications Mail Agreement No. 40845540. Canada return address: Station A, PO mate change. Santorum has already identified his coal roots and could be the safest Box 54, Windsor ON N9A 6J5, Email: [email protected]. Current and back option for organized labor, but would he be able to defeat Obama? issues and additional resources, including subscription request forms and an editorial calendar, are available online at www.coalage.com. Unfortunately, organized labor’s hands are probably tied at this point and they will SUBSCRIPTION RATES: Free and controlled circulation to qualified subscribers. have to secretly hope that the American people vote Obama out. Internal efforts will Non-qualified persons may subscribe at the following rates: USA and Canada, 1 year, not work because the rank and file cannot vote in the primaries. They will have to roll $56.00, 2 year, $96.00, 3 year, $162.00, Student, $16.00, Outside the USA and with the Republican nominee. If the election is a referendum on Obama’s perfor- 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 mance during the last four years, it should be a slam dunk. The coal community can copies, write to Coal Age, 8751 East Hampden, Suite B1, Denver, CO 80231 USA; voice its opinion in the general election. 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. POSTMASTER: Send address changes to Coal Age, P.O. Box 1337, Skokie, IL 60076 USA. REPRINTS: Mining Media Inc, 8751 East Hampden, Suite B1, Denver, CO 80231 USA Steve Fiscor, Coal Age Editor-In-Chief phone: +1.303.283.0640, fax: +1.303.283.0641, www.mining-media.com [email protected] 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. Obtain further information at www.copyright.com. COPYRIGHT 2012: Coal Age, incorporating Coal and 2 www.coalage.com Coal Mining & Processing. ALL RIGHTS RESERVED. news Westmoreland to Acquire Kemmerer Mine tion for 2012 through 2016 is committed and priced under exist- ing sales contracts. “Strategically, the Kemmerer mine fits well with our existing mine mouth operations,” said Keith Alessi, president and CEO, Westmoreland. “The mine has a diversified base of stable cus- tomers, both utility and industrial. Under Chevron’s stewardship, the mine has been well managed and its capital equipment is in excellent condition. We hope to close the transaction by January 31, 2012. “We view the Kemmerer workforce, which totals approximate- ly 290 people, as a core component of the transaction.
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