Oct-2018Min.Pdf

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feature articles PREP PLANT CENSUS/18 VENTILATION CONTROLS/30 18 2018 US Prep Plant Census Owners make investments to improve processing operations

30 Retrofit-ready Solutions Target Primary Needs With a market increasingly in search of options, suppliers promote solutions that speak to efficiency and safety concerns for brownfield projects

34 New Techniques for Tackling Corrosion CORROSION/34 SUPPLIERS NEWS/40 As the saying goes, rust never sleeps, but mine and plant operators are waking up to new technologies for controlling it coal in the news 4 Bowie Becomes Wolverine, Moves to Utah 4 Mission Coal Files for Chapter 11 4 Peabody Will Acquire Shoal Creek Mine 4 Westmoreland Files for Bankruptcy 5 Contura Energy, Alpha Natural Resources Amend Merger 6 Ramaco Develops Alternative Plan at Berwind Mine 6 Judge Denies FES Request to Reject Murray Energy this issue Coal Supply Agreement 7 Paringa Signs Second Coal Supply Contract for This month, Coal Age turns its attention toward coal beneficiation with New Poplar Grove Mine its annual U.S. Prep Plant Census. On the cover, Paringa Resources’ 8 Indiana Coal Mining Rebounding Poplar Grove plant, America’s newest coal preparation plant. 10 Solar Sources Resumes Coal Production at Cannelburg Mine 11 Bluestone Resources Adds 290 Jobs at West Virginia, Kentucky, Virginia Coal Mines 12 NRP, Foresight Resolve Legal Dispute 12 JRL Achieves Production Milestone departments world news 2 Editorial 4 News 5 Peabody Fights Fire at Australian Longwall Mine 5 World News 5 Kameron Faces Pushback From Fishermen in 11 People Nova Scotia 13 Awards 6 Coal Sector Reforms Hit Wall in India 14 Calendar 7 South32 Finalizes Purchase of 50% Interest 38 Operating Ideas in Eagle Downs in Australia 40 Suppliers News 42 7 Turkey Transfers Operating Rights to Product News 46 Private Companies Classifieds 48 Legally Speaking 8 Russian Coal Transport by Rail Increases 8 Exxaro Expresses Interest in South32 Coal Assets in South Africa 8 China Clamps Down on Thermal Coal Imports 8 Ukraine’s Coal Imports Continue to Climb

October 2018 www.coalage.com 1 editor’s note

Emerging Asian Opportunities

s the fourth quarter begins, U.S. coal production is track- www.coalage.com Aing about 3% less than last year. If that remained the case for the rest of the year, total U.S. coal production would be a Mining Media International, Inc. little more than 763 million tons. Many of these numbers lag 11655 Central Parkway, Suite 306 Jacksonville, Florida 32224 U.S.A. and a lot could change between now and the end of the year. Phone: +1.904.721.2925 The news section opens this month with two bankruptcy Fax: +1.904.721.2930 reorganizations: Westmoreland Coal and Mission Coal. While they are two more casualties that are working to get their fi- Editorial nancial affairs in order, readers should notice a fair amount of Publisher & Editor-in-Chief—Steve Fiscor, [email protected] Associate Editor—Jennifer Jensen, [email protected] good news in that section as well. A number of small and me- Technical Writer—Jesse Morton, [email protected] BY STEVE FISCOR dium size producers have announced some good results and Contributing Editor—Russ Carter, [email protected] PUBLISHER & certain regions are seeing growth. Some of this growth is due EDITOR-IN-CHIEF Latin American Editor—Oscar Martinez, [email protected] to a buoyant export market. Graphic Designer—Tad Seabrook, [email protected] The latest figures available (year-to-date August 2018) show exports tracking about 18 million tons above where they were this time last year, 78 million tons vs. Sales 60 million tons. Steam coal exports are up about 10 million tons and met exports are Midwest/Eastern U.S. & Canada, Sales—Victor Matteucci, [email protected] up about 8 million tons. While exports by destination are up in general across the Western U.S., Canada & Australia—Frank Strazzulla, [email protected] Scandinavia, UK and European Sales—Colm Barry, [email protected] board, coal exports to Asia have increased 12.8 million tons (9.5 million steam and Germany, Austria & Switzerland Sales—Gerd Strasmann, [email protected] 3.3 million met). While it’s true that China is a huge export destination, the growing Japan Sales—Masao Ishiguro, [email protected] markets for American coal are India, Japan and South Korea. Production Manager—Dan Fitts, [email protected] According to a recent Institute of Energy Research (IER) report, Asia is expected to increase coal use for power generation for the foreseeable future. Coal Age has routinely reported on new power plant construction, which will drive future consumption. In the last two years, China commissioned more than twice as much coal- fired capacity as the rest of the world combined. The IER report predicts that an ad- ditiona1 100 gigawatts (GW) of coal-fired capacity will be built by 2040. What’s really great about these plants is that most will be high-efficiency, low-emission (HELE) plants that use supercritical technologies that reach up to 50% net efficiency in coal combustion compared to the 30% for standard plants. This form of coal-fired power generation is a wise choice for these Asian countries and the rest of the world. The cities throughout China, India and southeast Asia Coal Age, Volume 123, Issue 8, (ISSN 1040-7820) is published monthly ex- represent about 60% of the global population. Affordable large-scale sources of elec- cept January and July, by Mining Media International, Inc., 11655 Central Parkway, Suite 306, Jacksonville, Florida 32224 (mining-media.com). Pe- tricity will allow them to improve their lives and it will spur economic growth. riodicals postage paid at Jacksonville, FL, and additional mailing offices. Asian banks and construction firms will capitalize on this opportunity as west- Canada Post Publications Mail Agreement No. 41450540. Canada return ern banks are forced to turn their backs by misinformed environmental pressure. address: PO Box 2600, Mississauga ON L4T 0A8, Email: subscriptions@ coalage.com. Current and back issues and additional resources, including It’s estimated that more than $15 billion has been invested in coal-fired projects subscription request forms and an editorial calendar, are available online throughout the region in the last three years. China lends its support through the at www.coalage.com.

Belt and Road Initiative. Large companies in Japan and South Korea have organized SUBSCRIPTION RATES: Free and controlled circulation to qualified subscribers. investment groups to fund these projects as well. Visit www.coalage.com to subscribe. Non-qualified persons may subscribe at Are you unsure as to how you can take advantage of these developing markets? the following rates: US domestic addresses a 10 issue subscription, $75.00 USD, All addresses outside the USA a 10 issue subscription $125.00 USD. For Many American companies are exporting with fewer hurdles and more conﬁdence subscriber services or to order single copies, contact Coal Age, c/o Stamats by partnering with the Export-Import Bank of the U.S. (See Operating Ideas, p. 38). Data Management, 615 Fifth Street SE, Cedar Rapids IA 52401, 1-800-553- 8878 ext. 5028 or email [email protected]. This independent federal government agency can provide ﬁnancial support for businesses of all sizes to boost international sales. U.S. coal operators shouldn’t ARCHIVES AND MICROFORM: This magazine is available for research and overlook the opportunities afforded by export markets. retrieval of selected archived articles from 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.

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“In conjunction with the recent management changes and re- capitalization of the company, we wanted to offer our employees a fresh start and new identity with the name change,” Grech said. “Our workforce is tough and resilient, very much like a wolverine, so we think our new namesake will resonate very well with our employees and the communities in which we operate.”

Peabody Will Acquire Shoal Creek Mine Peabody Energy has signed a definitive agreement to purchase the Shoal Creek metallurgical coal mine located on the Black War- rior River in Alabama from private coal producer Drummond Co. Inc. for $400 million. Shoal Creek serves Asian and European steel mills with high-vol A coking coal. U.S. bituminous coal operator Bowie Resource Partners moved its Peabody will purchase the mine, prep plant and supporting corporate headquarters from Grand Junction, Colorado, to Sandy, assets. The agreement excludes legacy liabilities other than recla- Utah, and has changed its name to Wolverine Fuels LLC. Wolver- mation. The transaction is expected to close before the end of 2018. ine will continue to operate the Sufco, Skyline and Dugout Can- “Peabody has consistently outlined our intention to upgrade our yon mines in Utah and the idled Bowie No. 2 mine in Colorado, metallurgical coal platform and make strategic investments using a and will also maintain a small regional office in Grand Junction. strict set of filters,” said Peabody President and CEO Glenn Kellow. “We are primarily a Utah company, employing Utah citizens “We believe the purchase of the well-capitalized and high-quality and supplying coal to Utah power plants, so it only makes sense Shoal Creek mine meets these filters, offers major logistical advan- that we have our headquarters in Utah,” said James Grech, Wol- tages and represents an opportunity to create significant value.” verine’s CEO, who was recently appointed in July. “This move will Shoal Creek represents the next phase of Peabody’s initiative allow the executive team to be closer to our mines, our workforce to upgrade its metallurgical coal platform, adding approximate- and our customers,” Grech said. “I want to thank everyone in ly 2 million tons per year (tpy) of high-quality hard coking coal Utah who encouraged and assisted us with this relocation, espe- sales, the company said. The mine is strategically positioned with cially Governor Herbert’s office and Sen. David Hinkins.” direct access to barge transportation, eliminating trucking or rail “The Utah economy benefits from low cost, sustainable elec- requirements. The mine accesses seaborne markets through the tricity, generated by its many diverse resources, including the McDuffie Terminal in Mobile with substantial available capacity. coal-fired power plants located in the state,” said Laura Nelson, Shoal Creek employs 400 and uses longwall mining technol- the governor’s energy advisor and executive director of the Gov- ogy to mine both the Blue Creek and Mary Lee coal seams. The ernor’s Office of Energy Development. “The Wolverine mines are current mine plan accesses 17 million tons of reserves. In 2017, key suppliers to those plants, providing jobs and energy security the mine sold 2.1 million tons. locally, regionally and globally.” Sen. Hinkins added, “The Wolverine mines have an enor- Westmoreland Files for Bankruptcy mous economic impact in Emery, Carbon, Sevier and Sanpete On Tuesday, October 9, Westmoreland Coal Co. said it had entered counties, and I was honored to assist Jim Grech and his team into a restructuring support agreement (RSA) with members of with the move.” an ad hoc group that hold approximately 76.1% of the company’s

breaking news Mission Coal Files for Chapter 11

Mission Coal, which was formed in January by combining Seneca Coal of September, however, the company reportedly had only mined 2.1 Resources and Seminole Coal Resources, filed for Chapter 11 bankrupt- million tons. cy protection with the U.S. Bankruptcy Court for the Northern District of According to the filing, Mission Coal owes more than $32 mil- Alabama at the beginning of October. Altogether, Mission Coal operated lion to 50 creditors. The largest claims include more than $9.7 million two deep mines and one surface mine in West Virginia and one deep to United Mine Workers of America members’ pensions and benefits mine in Alabama with varying qualities of metallurgical-grade coal. trustees, $4.9 million and $4 million to Michael Hollard and Bluestone Mission Coal was expecting to produce 6.5 million tons of coal in Coal, respectively, related to litigation. The company also owes $3.2 2018. The company lowered its 2018 forecast to 4.5 million tons due million to Natural Resource Partners, $2.1 million to Carter Machinery to transportation issues and adverse mining conditions. At the end and nearly $2 million to Alabama Power.

4 www.coalage.com October 2018 news continued

top 10 coal-producing states world news (in Thousand Short Tons) Week Ending (9/29/18) Peabody Fights Fire at Australian Longwall Mine YTD ‘18 YTD ‘17 % Change Peabody has developed a multitiered plan in an effort to extinguish Wyoming 223,744 237,569 -5.8 a fire at its North Goonyella mine in Queensland and contain the impacts. The plan was reviewed by the Queensland Mine Inspec- West Virginia 72,562 68,320 6.2 torate and is undergoing implementation at this time. The under- Pennsylvania 37,402 36,802 1.6 ground mine and surface areas remain restricted to access through Illinois 36,934 36,787 0.4 exclusion zones while the work continues. Kentucky 29,830 32,339 -7.8 The elements of the plan include implementing use of a Montana 28,793 25,391 13.4 mobile GAG unit, a specialist piece of equipment that generates high-moisture inert gases to displace oxygen supply at a fire Indiana 25,352 23,729 6.8 zone; and installing temporary seals into mine openings following North Dakota 21,996 21,209 3.7 completion of risk assessments and using remote-control equip- Texas 21,131 26,342 -19.8 ment to pump a fire-resistant expandable material called Rocsil. Alabama 10,917 9,572 14.0 The plan also includes additional drilling and sealing of the old U.S. Total 562,408 578,373 -2.8 longwall panel to ensure the area is further isolated. The company will work with air quality monitoring experts on a voluntary program of environmental monitoring at North Goonyella, including term loan, approximately 57.9% of its senior secured notes, and regular site visits and boundary inspections to assess and ana- approximately 79.1% of its bridge loan. To implement the RSA, lyze air quality data from key points. The company will also make sure all safety protocols are in place and strict risk assessments the company filed voluntary petitions for relief under chapter 11 are performed. of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the “Working in consultation with the inspectorate and third- Southern District of Texas, Houston Division. party experts, we’re moving safely and as quickly as possible to “After months of thoughtful and productive conversations with address the situation,” said President Peabody Australia George J. our creditors, we have developed a plan that allows Westmoreland Schuller Jr. “Peabody appreciates the ongoing work of the team at to operate as usual while positioning Westmoreland for long-term North Goonyella, the inspectorate, independent technical experts, Queensland Mines Rescue Service, union representatives and all of success,” said Michael Hutchinson, Westmoreland interim CEO. “We the people who are engaged in the response to this issue.” will continue to work constructively with the ad hoc group and serve The company noted that the fire is ongoing, and it is too early our customers in the normal course as we progress through an expe- to assess the extent of impacts. dited process to restructure our long-term debt and other liabilities. Peabody does not expect any production from North Goonyella “Our goal is to emerge as a stronger Westmoreland, better po- in the fourth quarter of 2018 and has a small amount of coal in sitioned to grow and thrive.” inventory to ship. The company said it is too early to assess the full Westmoreland’s coal operations include surface coal mines in financial impact to future periods as a result of the ongoing issue, however, with strong performance from other mines, the company the United States and Canada, underground coal mines in Ohio is maintaining its full-year 2018 metallurgical coal sales volume and New Mexico, a char production facility, and a 50% interest in targets of 11 million to 12 million tons. an activated carbon plant. The mine shipped 1.6 million tons in 2016 and 2.9 million In addition, Westmoreland affiliate Westmoreland Resource tons in 2017. North Goonyella ships a high-quality hard-coking Partners LP simultaneously filed for relief under chapter 11 of coal that typically realizes at or near the premium hard-coking coal the Bankruptcy Code. WMLP has agreed to terms with its secured benchmark. creditors on the use of cash collateral to fund WMLP’s normal course operations and allow WMLP to serve its customers during Kameron Faces Pushback From Fishermen in Nova Scotia Canada’s Kameron Collieries is facing strong pushback from the course of WMLP’s chapter 11 case. fishermen on Nova Scotia’s Cape Breton Island over plans to con- Westmoreland’s Canadian entities and Westmoreland Risk struct a marine facility in Morien Bay to barge coal from its Donkin Management Inc. are excluded from the voluntary petitions. underground coal mine to ocean-going vessels docked several Westmoreland’s operations in the U.S. and Canada are cash flow miles offshore. positive and liquidity from operations combined with the com- Kameron, a subsidiary of U.S.-owned Cline Group, recently pany’s Debtor-In-Possession (DIP) financing is sufficient to con- began exporting an undisclosed amount of Donkin coal through Provincial Energy Ventures’ bulk terminal in Sydney, Nova Scotia, tinue operating its mines, without any expected impact to current more than an hour’s drive from the mine, to Rotterdam in the Neth- output levels. Westmoreland anticipates no staff reductions as a erlands, according to terminal officials. Kameron officials, who result of the restructuring announcement. were not available for comment, have talked with the Nova Scotia provincial government about building the company’s own barging Contura Energy, Alpha Natural Resources Amend Merger facility, a move that could save the company on transportation Contura Energy Inc., along with ANR Inc. and Alpha Natural costs. Currently, Kameron trucks coal from Donkin to Sydney harbor Resources Holdings Inc. announced the companies have entered for shipping. into an amended and restated merger agreement, which provides an increase in merger consideration to Alpha stockholders and the payment of a special dividend by Alpha. The transaction is expected Continued on p. 6...

October 2018 www.coalage.com 5 news continued

to close in the fourth quarter of 2018, subject to Alpha stockholder approval and the satisfaction of other customary conditions. Continued from p. 5... Alpha stockholders will receive 0.4417 Contura common But the plans are not sitting well with dozens of local fish- shares for each ANR Inc. Class C-1 share and each share of com- ermen in the Morien Bay area that is part of the Atlantic Ocean. In mon stock of Alpha Natural Resources Holdings Inc. they own, late September, about 30 fishermen briefly blocked the entrance to representing approximately 48.5% ownership in the merged enti- the mine to dramatize their opposition to the barging plans. ty. Prior to the closing of the transaction, Alpha stockholders will Fishermen said they were worried that barging coal through also receive a special cash dividend in an amount equal to $2.725 Morien Bay will damage or even destroy their fishing grounds, for each Class C-1 share and each share of common stock of Al- thereby affecting their livelihood. According to one fisherman, coal pha Natural Resources Holdings Inc. they own. barging could wipe out or decrease their normal catch of lobster, rock crab and sea urchin. Stockholders of Alpha, who collectively hold approximately So far, provincial officials have tried to walk a tightrope be- 38% of the shares of common stock of Alpha Natural Resources tween the two sides. Fishing has been a big part of Nova Scotia’s Holdings Inc. and approximately 35% of the shares of ANR Inc. heritage for hundreds of years. Coal mining once was an important Class C-1 common stock have entered into voting and support industry in the province as well, although Donkin currently is Nova agreements, where stockholders have agreed to vote their shares Scotia’s only active mine. in favor of the transaction, subject to the terms and conditions of Kameron, as well as Donkin’s former co-owners — Xstra- the voting and support agreements. ta Coal and Morien Resources — have made no secret of their plans to barge the mine’s metallurgical coal to foreign customers. Kameron acquired Donkin from Xstrata and Morien about three Ramaco Develops Alternative Plan at Berwind Mine years ago. After new exploratory drilling at the Berwind mine, Ramaco Re- Earlier this year, Nova Scotia Power, the dominant electric sources has further defined the extent of a sandstone intrusion utility in Nova Scotia, agreed to purchase an unspecified amount and has implemented an alternative plan to mine around it and of steam coal for NSP’s 620-megawatt Lingan power plant on ramp up into the Pocahontas No. 4 seam. The company said it will Cape Breton Island. Nearly a year ago, Kameron laid off 49 Donkin miners, about a third of its work force, saying it needed to make continue to mine in an alternate path through the Pocahontas changes in the mine’s operation to increase efficiency and produc- No. 3 Seam at an expected annualized rate of about 200,000 tons tion. The mine is believed to be producing at the rate of just over 1 per year (tpy). These development tons are expected to be sold at million tons annually. current pricing levels into the low volatile metallurgical market. Ramaco Resources now estimates that it will reach the thicker Coal Sector Reforms Hit Wall in India Pocahontas No. 4 seam low-volatile reserve in the second quarter of Indian reforms for the coal mining industry, as far as opening it 2020, as opposed to the third quarter of 2019. When reached, the lev- up to private miners, is not expected in the near future in face of el of production anticipated from both the Pocahontas Nos. 3 and 4 political risks and the impact on monopoly state miner Coal India Ltd. (CIL). reserves remains as originally forecast at approximately 800,000 tpy. Earlier this year, the government had announced that coal The Berwind coal reserve consists of 31,200 acres of con- blocks would be auctioned wherein private miners could bid and trolled mineral and approximately 72 million clean recoverable successful bidders permitted to develop the block and commence tons of proven and probable reserves located on the border of production without any end-use restrictions, marking the end of West Virginia and Virginia, in McDowell County, West Virginia, Coal Nationalization Act 1974. But with Indian national elections and Buchanan and Tazewell counties, Virginia. slated next year and privatization still a political gambit, the Min- Ramaco Resources has new commitments for the sale and deliv- istry of Coal has decided to put plans of opening up the sector for private investor on the backburner. ery of more than 1.2 million tons of various qualities of metallurgical Commercial coal mining by private miners is also being op- coal to domestic customers in 2019. The average price of these sales posed by all major trade unions in the coal industry and with all is approximately $113/ton FOB mine, which compares to the com- government coal companies having an estimated 600,000 workers pany’s 2018 average sales price to domestic customers of $79/ton on the payroll, the government could face off with trade unions FOB mine, an increase of roughly 43% year over year. The company ahead of national elections. also contracted earlier this year with various export customers for The government’s reluctance to push ahead with commercial coal mining was evident from the fact that the Coal Ministry reject- the sale of an additional 200,000 tons of metallurgical coal for deliv- ed a proposal from a high-power government committee that sug- ery in the first half of 2019, at prices set against various index prices. gested that all coal mines, except for those earmarked for specific sectors like steel, cement and power, be put up for auction where Judge Denies FES Request to Reject private miners be eligible to bid. Murray Energy Coal Supply Agreement Sources said internal government memos said that CIL sub- Murray Energy Corp. will continue supplying steam coal to FirstEn- sidiaries, which accounted for more than 80% of domestic coal ergy Solutions Corp., at least for now, after an Ohio federal judge in supplies, were wary of the prospect of competition from private miners having communicated that such competition carried risks early October denied FES’s motion to reject the 6.5-million-tons-per- on production levels of the subsidiaries and long-term financial year (tpy) supply contract not set to continue for another decade. health of these government companies. Soon after filing for Chapter 11 federal bankruptcy reorganization on March 31, 2018, FES, a subsidiary of Akron, Ohio-based FirstEn- Continued on p. 7... ergy Corp., requested permission from the federal bankruptcy court in northern Ohio to prematurely terminate the Murray agreement.

6 www.coalage.com October 2018 news continued

Such a move, FES said, would save it approximately $20 million in 2018 and $14.5 million in 2019 as it attempts to reorganize its debts. But Judge Alan Koschik denied the request on October 2 in Continued from p. 6... a single-sentence ruling on court’s website, although he did not CIL subsidiaries have pointed out to the government op- give a reason for his decision. posing coal mining by private miners that labor costs constitutes Under the sales agreement, FES purchases coal to operate its about 55% of cost of production of government coal compared to 2,490-megawatt (MW) Bruce Mansfield power plant near Ship- about 25% in case of coal currently mined by private steel and pingport, Pennsylvania, and its 1,490-MW W.H. Sammis plant near power companies for captive consumption. Stratton, Ohio. FES recently announced plans to retire both Mans- It was expected that most future private miners would benchmark their cost of production and labor costs to existing captive field and Sammis by June 2021 and June 2022, respectively, unless coal miners and with such lower costs, compete aggressively with the President Donald Trump administration provides financial CIL, which in the long term, have crippling financial impact on the incentives to help keep coal plants operating. The Mansfield and latter, government companies have stated. Sammis contracts are scheduled to expire at the end of 2028. Ohio-based Murray, the largest privately owned coal com- South32 Finalizes Purchase of 50% Interest pany in the United States, supplies Northern Appalachian coal to in Eagle Downs in Australia the plants and has lobbied in support of their continued operation. South32 Ltd. has completed the acquisition of a 50% interest in However, PJM Interconnection, a regional grid operator the Eagle Downs metallurgical coal project in Queensland’s Bowen based in Pennsylvania, determined in early October that closing Basin. South32 has also assumed operatorship with the other 50% interest in the project held by Aquila Resources Pty Ltd. (Aquila), a Mansfield and Sammis in a few years would not adversely impact subsidiary of BaoWu. reliability in the region. The consideration comprises an upfront payment of ap- According to FES, the Murray agreement provides for mini- proximately US$106 million, a deferred payment of US$27 million mum volume requirements “that cause the coal sales agreement due three years after completion, and a coal price linked produc- to be burdensome for the debtors.” tion royalty that will also be payable and is capped at US$80 Because of a fire at Mansfield in January and the subsequent million. The upfront payment has been funded from the group’s cash reserves. non-availability of Mansfield Units 1 and 2, “the volume of coal “The acquisition of Eagle Downs embeds another attractive required to operate the Bruce Mansfield plant has decreased sig- development option within our growing portfolio, with the upfront nificantly,” FES said. Instead of 6.5 million tons, FES only needs payment representing a minor premium to the historical infra- about 2.5 million tons of coal in 2018 and expects to require about structure spend reflecting our move to operating control,” said 3.6 million tons in 2019 to keep Mansfield and Sammis running. South32 Chief Executive Officer Graham Kerr. “We are pleased Moreover, there was a 110-day coal stockpile at Mansfield to be able to further strengthen our long-standing relation- when FES filed its bankruptcy petition. ship with BaoWu and look forward to working with Aquila to commence the final feasibility study to optimize the mine design Murray declined to comment on the court ruling while a and development.” FES spokeswoman said the company is evaluating its options. Subject to the feasibility study, South32 and Aquila plan to They no doubt include appealing Koschik’s ruling to a construct a multiseam underground longwall metallurgical coal higher court. mine and processing plant with a dedicated rail spur and train In late 2013, Murray purchased five longwall mines in West loadout facility. Virginia from Consolidation Coal Co. and subsequently renamed Eagle Downs is a large, high-quality and fully permitted all of them. metallurgical coal development project located approximately 25 kilometers southeast of Moranbah. The project was placed FES received federal bankruptcy court approval in June to re- under care and maintenance in late 2015 having benefitted ject a 1.5-million-tpy coal supply agreement with Contura Coal from initial investment that delivered site infrastructure, in- related to the Sammis plant. cluding water supply and high-voltage systems, office buildings and water and sediment dams. Dual 2-km drifts are also approx- Paringa Signs Second Coal Supply Contract imately 40% complete. for New Poplar Grove Mine Australia’s Paringa Resources Ltd. now has steam coal commit- Turkey Transfers Operating Rights to Private Companies In an effort to reduce the country’s reliance on energy imports, Tur- ments for more than 5.4 million tons from its new Poplar Grove key’s Energy Minister Fatih Donmez has transferred the operating underground mine in McLean County, Kentucky, after signing an rights of seven high-potential coalfields to private companies, agreement in early October with Ohio Valley Electric Corp. (OVEC), Reuters reported. Once a darling of foreign investors, Turkey’s en- whose Indiana-Kentucky Electric Corp. subsidiary operates the ergy sector, which relies almost entirely on imports, has been hit 1,303-megawatt Clifty Creek power plant near Madison, Indiana, by a sharp decline in the lira. The currency has lost nearly 40% of and 1,086-megawatt Kyger Creek power plant near Cheshire, Ohio. its value this year, sparking worries over its impact on the wider The 650,000-ton contract with OVEC is set to run from 2019 to economy and the banking sector. State pipeline operator Botas raised prices for natural gas 2020. Paringa announced the new deal to its shareholders in Aus- used in electricity production by 50% in August. Natural gas and tralia, with Todd Hannigan, the company’s interim CEO, saying Paringa now has coal supply agreements with “two high-quality customers, providing an excellent platform to expand our sales Continued on p. 8... base when we shortly commence production.”

October 2018 www.coalage.com 7 news continued

Two years ago, Paringa inked a “cornerstone” contract with Kentucky’s two largest electric utilities, Louisville Gas & Electric Continued from p. 7... (LG&E) and Kentucky Utilities (KU). Under that arrangement, Pa- electricity prices for residential use have also been hiked for three ringa will deliver 4.75 million tons to the PPL Corp. subsidiaries consecutive months. over fi ve years. Donmez said that 19 million metric tons (mt) of coal would A utility spokeswoman said in early October that LG&E/ be produced with the new agreements, which is expected to halve KU expect to begin receiving coal from Poplar Grove in late De- annual imported coal costs. cember or early January 2019. LG&E/KU operate several major coal-burning generating stations in the Bluegrass state. Russian Coal Transport by Rail Increase Construction on Poplar Grove began in August 2017 and is State-owned Russian Railways (RZD) handled 276 million met- nearing completion. The work was affected somewhat by rainy ric tons (mt) of coal in the fi rst three quarters of 2018, up 5% year-on-year amid improvements to aging infrastructure and weather in early 2018. strong export demand, according to the Montel News Agency. Poplar Grove is the fi rst of two deep mines planned by Paringa Shipments in September, to domestic destinations, as well as to as part of its Buck Creek mining complex in the high-sulfur Illinois neighboring countries and export ports, were 1.4% higher on the Basin. Poplar Grove is expected to produce up to 2.8 million tons year at 29 million mt. The year-to-date increase was in line with per year (tpy) while the second mine, Cypress, is projected to be a 4% rise in total Russian coal exports, and a 6% increase in a 3.8-million-tpy operation. Construction on Cypress is slated to production, over the nine-month period, according to provisional begin once Poplar Grove is in production in a few months. energy ministry data. RZD said that a new 1.2-kilometer railway tunnel had been Paringa has patterned its coal strategy after Alliance Resource opened in the key coal-producing Kuzbass region, following six Partners, the largest steam coal producer in the ILB and considered years of construction work. It said that this improvement will allow among the most profi table coal companies in the United States. for faster delivery of coal to Russian and foreign consumers. Paringa has identifi ed about two-dozen power plants along and near the Ohio River that could purchase barge coal from Pop- Exxaro Expresses Interest in South32 Coal Assets lar Grove and/or Cypress. in South Africa OVEC, based in Piketon, Ohio, is jointly owned by several South Africa’s Business News reported that Exxaro is interested electric utilities with American Electric Power Co. controlling the in South32’s local coal assets, which include an export quota, as it looks to increase its exports. South32 plans to dispose of its largest portion, around 40%. South Africa Energy Coal (SAEC) operations, consisting of four coal OVEC was formed in 1952 to supply electricity to a uranium mining operations and processing plants in the coalfi elds of the enrichment plant near Portsmouth, Ohio. Mpumalanga province. OVEC offi cials could not be reached for comment. Mike Fraser, South32 COO, said they are quality assets Clifty Creek and Kyger Creek are expected to continue operat- and there has been a lot of interest. He said South32 has around ing until at least 2040. 21% of the available export capacity at the Richards Bay Coal Terminal. Indiana Coal Mining Rebounding China Clamps Down on Thermal Coal Imports While Indiana may not produce 39 million tons of steam coal like Chinese demand for Australian thermal coal was stronger than it did in 2013 anytime soon, the state’s coal industry is on the re- expected in the fi rst half of 2018, but softened in September af- bound with at least a couple of new mines planned, the recent ter the Chinese government imposed unoffi cial restrictions on coal resumption of production at Alliance Resource Partners’ Gibson imports in a bid to prop-up its domestic coal miners, the Financial South underground mine and companies seeking to extend the Review reported. lives of several existing mines. “China’s reduction in coal imports is almost becoming an It all adds up to an encouraging picture, according to Colleen annual tradition, as the government works to try and support local producers,” James Rickards, investor relations manager for Baughman, state coal permit supervisor in Indiana. She hopes Yancoal. “As a result, it’s been both anticipated and prepared for. the industry can stabilize after a few down years and continue to We’re likely to see continued fl uctuations in pricing across both provide good-paying jobs for hundreds of employees in tradition- low and high ash thermal [coal], but the China decision shouldn’t al mining counties. cause too signifi cant a ripple.” Permitting activity has been fairly brisk in 2018 and in late October she said Sun Energy Group recently fi led an application Ukraine’s Coal Imports Continue to Climb for a state permit to develop the Flint Hill surface mine near Dale Imports of coal to Ukraine rose to 15.6 million metric tons (mt) for the fi rst nine months of 2018, a 20% year-on-year increase, in Spencer County. The mine would be small, probably no more valued at $2.2 billion, according to Interfax. Ukraine imported than a few hundred thousand tons of coal a year. But it is never- coal worth $1.4 billion from Russia (63%), $671 million from theless important for the message it sends in the era of Donald the U.S. (31%) and $87 million from Canada (4%). Ukraine ex- Trump, a president who supports coal, unlike his predecessor: ported more than 50,000 mt of coal worth $8.1 million during Coal is back in Indiana. the same period. In fact, it actually never left. Following the strong production of 2013, the state experienced several years of declining coal output. This year, the Indiana Coal Council predicts Indiana will produce about 33 million tons, about a million tons more than last year.

8 www.coalage.com October 2018 news continued

And that is without contributions from the new Sun mine and ducing Log Creek surface and underground mine in Pike County. It Blankenberger Brothers’ proposed new underground mine in Pike probably will be 2019 before a decision is made on Triad’s request. County. The privately owned company is waiting to sign a coal supply agreement before moving forward with construction of the mine, Solar Sources Resumes Coal Production at Cannelburg Mine possibly in 2019, that could produce up to 3.5 million tons annually. For the first time in several years, Solar Sources Inc.’s Cannelburg Flint Hill would be Sun’s second operating mine, complement- surface steam coal mine in Daviess County, Indiana, is back in ing its Hilsmeyer surface mine in Dubois County. Sun officials production, to help fulfill new sales contracts and for blending could not be reached for comment as to when development of purposes, according to Felson Bowman, Solar’s chairman who Flint Hill will commence, but it conceivably could be sooner rather founded the company more than 40 years ago. than later if Huntingburg, Indiana-based Sun continues to experi- Cannelburg’s varying degrees of sulfur content give Solar ence geological issues at Hilsmeyer. These problems have caused more flexibility in servicing contracts. The mine is helping to Sun to declare force majeure three times this year on an early 2018 supply a new contract with Indianapolis Power & Light Co., whose coal supply contract it received from Big Rivers Electric Corp., a 1,700-megawatt Petersburg power plant is located in neighboring Henderson, Kentucky-based generation and transmission co-op. Pike County. Petersburg is the only remaining coal plant of IP&L, Sun has had to suspend deliveries to Big Rivers and recently a subsidiary of Arlington, Virginia-based AES Corp. advised the co-op it most likely will be in early 2019 before ship- Solar also operates the Antioch surface mine in Daviess ments will resume. The nature of the geological issues has not County and Shamrock surface mine in Dubois County. Altogeth- been publicly disclosed. er, the company’s three mines are expected to produce in excess In any event, Flint Hill would be a roughly 615-acre mine. of 2.5 million tons of coal annually. Baughman expects to make a final permit decision next year. According to Bowman, Solar’s acquisition nearly two years Alliance, the largest coal producer in the high-sulfur Illinois ago by White Stallion Energy of Evansville, Indiana, is produc- Basin, is producing coal again at Gibson South, which was shut- ing benefits for his company. White Stallion is headed by veteran tered for about three years before it reopened this summer. The Midwest coal industry executive Steve Chancellor. mine is less than a mile from its sister Gibso North underground In addition to selling coal to IP&L, Solar’s other customers mine near Princeton in Gibson County. include Duke Energy Corp. and several industrials in Indiana. Meanwhile, Blackhawk Mining subsidiary Triad Mining is Unlike a number of other steam coal producers in the seeking the state’s approval of a five-year extension for its non-pro- high-sulfur Illinois Basin, Solar is not shipping any coal into

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the export market. Nor does it plan to, Bowman said, because the and the Bishop Surface Mine in Tazewell County, which is reopen- company’s mines in southern Indiana are “too far from the river.” ing. The company is also hiring miners at its Wise, Virginia, and Pike County, Kentucky, operations. Bluestone Resources Adds 290 Jobs at West Virginia, Kentucky, “We are looking for quality workers to operate all types of Virginia Coal Mines machinery, and we’re offering great wages and beneﬁts,” said Jay Bluestone Resources is hiring 290 additional workers at its coal Justice, who operates the mines for the Justice family coal compa- mines across West Virginia, Virginia and Kentucky. The new jobs nies. “We are excited about the opportunities we have available will be created at the Keystone Surface Mine in McDowell County and are looking to hire right away.”

people in the news ERIKS North America appointed Shawn Courtney as P its new president and CEO. Courtney is currently regional product director of ERIKS North America and also is president of ERIKS Seals and Plastics.

South32 appointed Simon Collins as chief develop- Motion Industries promoted Pamela ment ofﬁcer. Collins is currently the head of corpo- Sims to vice president of marketing. rate development. Shawn Courtney Sims joined Motion Industries in 2004, starting in market research. Tony Calandra has been appointed Her career quickly evolved, and she president of Frank Calandra Inc./ most recently served as the compa- Calandra Group. The group of ny’s director of marketing since 2013. Pamela Sims Simon Collins companies include Jennmar, JLOK, Jennchem, JM Steel, Jennmar Civ- Kolberg Pioneer, Johnson Crushers International Inc. il, JM Conveyors, JM Sanshell, Jennmar Specialty, JM and Astec Mobile Screens Inc. promoted Darren Kirby McSweeney, CDS, Tungstemet and Jennmar Services. to North America sales director, East. Kirby has been em- Prior to joining FCI/Calandra Group, he was a senior ployed at KPI-JCI and Astec Mobile Screens since 2007, accountant at Ernst & Young. Tony Calandra Darren Kirby most recently as regional sales manager, Southeast.

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October 2018 www.coalage.com 11 news continued

A variety of jobs are being offered, with the highest paying NRP, a master limited partnership headquartered in Houston, wages in the coal sector, along with a newly redesigned bonus Texas, is a diversifi ed natural resource company that owns inter- program, the company said. A new red hat training program for ests in coal, aggregates and industrial minerals across the United a small number of inexperienced workers is also being initiated. States. A large percentage of NRP’s revenues are generated from “Because of its extremely high-quality coal, Bluestone provides royalties and other passive income. long-term job security, even if the market turns down,” said Justice. “We are pleased to have reached a mutually benefi cial reso- Bluestone has been a family operation since it began in 1971. lution in these lawsuits. These agreements provide us with long- For more information on the job openings, visit Bluestone Re- term control of our coal reserves and operational fl exibility at sources Inc. on Facebook, email a resume, along with desired posi- Hillsboro Energy’s Deer Run mine. We look forward to continuing tion, to [email protected] or call (304) 956-0765. our relationship with NRP in the future,” said Robert D. Moore, president and CEO, Foresight Energy. NRP, Foresight Resolve Legal Dispute Foresight Energy is a leading U.S. coal producer, controlling Natural Resource Partners (NRP) and Foresight Energy recently more than 1.7 billion tons of coal reserves in the Illinois Basin. Fore- settled litigations regarding Foresight Energy’s Hillsboro Energy sight Energy currently operates two longwall mining complexes with Deer Run mine and Foresight Energy’s Macoupin Energy Shay three longwall mining systems, Williamson (one longwall mining mine. Upon execution of fi nal documents, NRP will receive a system) and Sugar Camp (two longwall mining systems), one con- payment of $25 million from Foresight Energy in consideration tinuous mining operation (Macoupin), and the Sitran river terminal of disputed past due amounts. In addition, NRP and Foresight on the Ohio River. Foresight’s operations are strategically located Energy will amend the Hillsboro Energy coal mining lease to pro- near multiple rail and river transportation access points, providing vide $11 million of non-recoupable annual minimum payments transportation cost certainty and fl exibility to direct shipments to to NRP and extend the current lease term through the end of the domestic and international markets. Foresight Energy also owns 2033. All claims will be dismissed in both the Hillsboro Energy coal interests and mining assets located in southeastern Ohio. and Macoupin Energy litigations. “These agreements represent a favorable outcome for NRP JRL Achieves Production Milestone and an important step in advancing our business relationship JRL Coal Inc. has completed the shipment of more than 1 million with Foresight,” said Craig Nunez, president and COO of NRP. “We tons of thermal coal as its payroll reaches 200 employees since look forward to continuing our long-term partnership with them.” beginning operations in June 2017.

November 6-8, 2018 Pittsburgh, PA

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12 www.coalage.com October 2018 news continued

% awards NMA Joins Federal Agencies to Honor Achievements in Mine Safety

The National Mining Association (NMA), the U.S. National Institute of Occu- The U.S. Department of the Interior recognized two coal com- pational Safety and Health (NIOSH), U.S. Department of the Interior’s Office panies, two hard-rock companies and one equipment manufacturer for of Surface Mining Reclamation and Enforcement (OSMRE) and Bureau of their outstanding environmental performance, mine reclamation accom- Land Management (BLM) gathered on September 27 to honor outstanding plishments and community outreach programs. achievements in mine safety, environmental stewardship and technology. OSMRE 2018 winners include: NMA’s Sentinels of Safety Award recognizes coal and mineral min- • National Award: Peabody Midwest Mining LLC – Wild Boar Mine – ing operations in 10 categories for recording the most hours in a calen- Barren Fork Pit – Lynnville, Indiana; dar year without a single lost-time injury. A minimum of 4,000 hours is • National Award: Big Sky Coal Company – Big Sky Mine Area B – required for award consideration. The award categories reflect the safety Rosebud County, Montana; accomplishments of both small and large mines. • Good Neighbor Award: Peabody Midwest Operations LLC – Bear Run Six coal operations and 14 mineral/metal mines — were honored Mine – Carlisle, Indiana; and with the award recognizing performance in 2017. • Good Neighbor Award: Trapper Mining Inc. – Trapper mine – Craig, “Through these awards, we acknowledge outstanding accomplish- Colorado. ments in safety and hope that these companies’ achievements can serve BLM 2018 winners include: as a model for others in industry,” NMA President and CEO Hal Quinn said. • Hard rock Mineral Environmental Award: M-I LLC (Wyoming) Recipients include the following: • Hard rock Mineral Small Operator Award: Western Mining and Large Group: Minerals Inc. (Utah) • Underground Coal: Bull Mountains mine No. 1 – Signal Peak Energy LLC • “Fix A Shaft Today!” Award: Comstock Mining Inc. (Nevada) • Coal Processing Facility: Kayenta mine – Peabody Western Coal Co. In addition, NIOSH will recognize this year’s Mine Safety and Health • Surface Coal: Kosse Strip – Luminant Technology Innovations Awards winners. Honorees are selected due to the Small Group: significant advancements they have made to enhance mine safety by ap- • Underground Coal: Cooper Ridge Deep mine – Kopper Glo Mining LLC plying technology or improved processes in innovative ways. • Coal Processing Facility: Holden No 22 Preparation Plant – Arch Coal Inc. The following companies were recognized for 2018: Anglo Ameri- • Surface Coal: Solomon Run – Elk Resources Inc. can, CONSOL Energy and Komatsu Mining.

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October 2018 www.coalage.com 13 news continued

In February 2017, JRL acquired the mining rights of an idle mine and wash plant in Coalgood, Kentucky. The mine had been sitting idle since 2012. After the acquisition, entrepreneurs Jou- ko Rissanen, Timothy Lusby, and Roger Lusbyimmediately began preparing the mine to resume operations by acquiring capital equipment, engaging experienced mining and regulatory professionals, and securing long-term supply contracts with regional utility and industrial companies. “After examining the industry, we determined that rising coal prices and a cease on unnecessary federal regulations since the November 2016 presidential election, made the opportunity attractive for our long-term investment goals,” said Founder and CEO Timothy Lusby. JRL began mining and shipped its ﬁrst two trains of coal total- ing 25,000 tons of clean coal from its Coalgood, Kentucky, operations as of September 2018, management scaled its mining operations and is currently mining and shipping more than 120,000 tons per month. The company recently hired its 200th employee in Harlan County, Kentucky. In related news, JRL Coal was named Business of the Year at the Harlan County Chamber of Commerce’s Annual Gala. The award recognizes a business that has contributed and promoted economic growth, stability and improvement in the Harlan County community. “As we started this venture, we wanted to develop a company that would be successful, and also seen as a pillar in the community. This award represents the strong partnership we have made with the Harlan community,” Timothy Lusby said. “What we have been able to achieve would not be possible without the stellar work ethic of the team we have assembled in Harlan. Our team is one of our strongest assets as a company, and I am proud to be a part of such a great organization.” JRL Energy conducts both surface and underground mining on leasehold interests covering more than 15,000 acres and representing more than 50 million recoverable tons of coal. The company holds 11 coal mining permits issued by the Kentucky Department of Natural Resources, including permits to process and wash coal, dispose of waste and load unit trains.

calendar of events

November 6-8, 2018: MetCoke World Summit 2018, Pittsburgh, Penn- sylvania. Contact: Web: www.metcokemarkets.com/metcoke-summit. Janaury 27-30, 2019: 45th Annual Conference on Explosives and Blasting Techniques, Nashville, Tennessee. Contact: Web: www.isee.org. January 31-February 1, 2019: 19th Coaltrans USA, Miami, Florida. Contact: www.coaltrans.com/usa. February 24-27, 2019: SME Annual Conference & Expo, Denver, Colorado. Contact: Web: www.smeannualconference.com. March 10-13, 2019: Haulage & Loading, Hilton El Conquistador Resort, Tucson, Arizona. Contact: Web: www.haulageandloading.com. April 8-14, 2019: bauma, Messe Muenchen, Munich, Germany. Contact: Web: www.bauma.de. May 20-22, 2019: Longwall USA, David L. Lawrence Convention Center, Pittsburgh, Pennsylvania. Contact: Web: www.longwallusa.com.

14 www.coalage.com October 2018

u.s. prep plant census 2018 2018 US Prep Plant Census Owners make investments to improve processing operations

by steve fiscor, editor

Paringa Resources erects the Poplar Grove prep plant in western Kentucky.

For the most part, the updates to the 2018 More recently, Contura Energy and Al- bama. Bowie Resources changed its name U.S. Prep Plant Census reveal no major pha Natural Resources announced plans to Wolverine Fuels and that change is re- swings as far as the general population. Af- to remerge. The transaction was expect- flected in Colorado and Utah. ter years of turmoil and decline, the indus- ed to be completed soon. The companies try has stabilized. There was, however, a said they would retain the Contura Ener- Foreign Investments significant amount of name changes. One gy name for the Alpha properties, which Paringa Resources Ltd., an emerging U.S. new plant was added, Paringa Resources’ means that three plants in Kentucky — energy provider with financial backing Poplar Grove plant in Kentucky. Long Fork, Martin County and Sidney — from Australia, is developing the Buck This year began with Murray Energy are now listed under Contura Energy. Sim- Creek Mine Complex in western Kentucky. acquiring a bankrupt Armstrong Energy. ilarly, seven Alpha plants in West Virginia The complex includes two fully permitted The company purchased its five mines (Black Castle, Delbarton, Kepler, Kingston, thermal coal mines: the Poplar Grove mine and three prep plants. The Midway, Arm- Mammoth, Marfork and Rum Creek) were with planned production of 2.8 million strong Dock and Parkway plants were placed under Contura Energy. tons per year (tpy) and the Cypress mine placed under an affiliate now known as Peabody Energy purchased the Shoal with planned production of 3.8 million tpy. Murray Kentucky Energy. Creek operation from Drummond in Ala- Construction is well-advanced at the Pop-

18 www.coalage.com October 2018 u.s. prep plant census 2018 continued lar Grove mine, with first coal expected to Energy began to look at ways to improve the Btu/lb clean coal if the plant could process be produced in late fourth quarter 2018. quality of the fuel they were delivering to the 800 tph of raw coal, Jain explained. The Poplar Grove prep plant, which power plant, which would extend the life Construction on the expansion began would be America’s newest prep plant, is of the power plant and the mine. They ap- during summer 2017. “This was a paral- currently in the final stages of the commis- proached The Daniels Co. in summer 2016. lel construction process that allowed us sioning process. The 400-tph two-stage, After evaluating the clean coal at the to continue to operate while the installed heavy-media plant is expected to process 3.6 time, Jain said he knew they could im- sumps, screens, distribution boxes and million tpy of raw coal with a 76.1% recovery prove the product and increase the plant’s the spirals,” Lepro said. “On October 8, and provide an 11,200-Btu/lb product. raw feed capacity to 800 tph. “It was ob- we shut the plant down, removed the jig, Stella Natural Resources, a Canadian vious from the coal analysis that the ar- brought the new equipment in and began company, recently entered the Appalachian rangement was no longer suitable for the to rehabilitate the existing equipment.” region with a methodical strategy to devel- characteristic of the coal they were cur- Exactly one month later, Blue Mountain op a sustainable business, explained Stella’s rently mining,” Jain said. started the heavy-media vessel and then CEO David Stone. The company acquired The upgrade called for the jig to be re- the cyclones. The spirals began processing and refurbished the Ivel plant, which is placed with a heavy-media vessel and the coal in January and project was completed now operating at nameplate capacity. They water-only cyclones would be reconfig- early in the first quarter of 2018. restored operations at the Lockwood Dock ured to include heavy media, which would “Today, the prep plant is providing and they are currently recommissioning reduce the cut point to remove more ash. cleaner coal to the power plant and for two underground properties. The expansion would also include a set of the first time in a long time, the longwall The Ivel facility now produces a pul- spirals to recover fine coal. is working to keep up with the prep plant,” verized coal injection (PCI) product and The improvement with the heavy-me- Lepro said. More recently, Blue Mountain typically three different types of industrial dia vessel along with the combination of replaced a rotary breaker with a 10 x 24 Ba- specialty coal ranging from a 2% ash mini heavy media and water-only cyclones, nana screen and an MMD sizer to prepare stoker to a 7% ash lump stoker. “We can would yield an additional 40 tph of 10,200 the raw coal feed for the plant. now also easily change the decks and settings to meet our customers exact requirements,” Stone said. Stella recently loaded its first unit train of specialty stoker product from the Ivel facility. “We have been washing and creating numerous products for our customers’ specifications over the preceding year, though all of it was transported to our customers though our dock facility on the Big Sandy River,” Stone said. “This first train demonstrates Stella’s regional capacity, with this product bound for Canada.”

Deserado Upgarde At the 2018 CoalProTec conference and exhi- bition, Surendra Jain, president, The Daniels Co., and Bill Lepro, the surface superinten- dent for Blue Mountain Energy, gave a pre- sentation on the recent Deserado prep plant upgrade. Located near Rangley, Colorado, Blue Mountain Energy’s Deserado operation is a captive longwall mining complex that supplies coal to the Deseret power plant. The Deserado prep plant was built in 1983 by McNally Systems. It was equipped with a jig and water-only cyclones and engineered for a raw feed capacity of 500 tph. Over time, the quality of the raw coal changed and modiﬁcations were made, but the plant only operated at about 325 tph. With the Deseret power station facing environmental pressures, Blue Mountain Stella Natural Resources recently loaded its first unit train from the Ivel prep plant in Kentucky.

October 2018 www.coalage.com 19 u.s. prep plant census 2018 continued

Year of Type of Primary Sep. Raw Product Last Plant HM Company Plant Name Feed Ash % Quality Upgrade HM WO Jig Ves. Cycl.

Alabama (7) Jesse Creek Mining Piney Woods 300 — — — •———— Peabody Energy Shoal Creek 2,220 12.00% < 1.2 — —••—— Seneca Coal Resources (ERP) Concord 1,000 — — — •——•— Southern Coal GTM Modular Plant 250 — — — •———• Warrior Met Coal JWR No. 4 1,300 — — 2010 • — — • • Warrior Met Coal JWR No. 5 (Idle) 1,000 — — 2008 • — — — • Warrior Met Coal JWR No. 7 1,400 — — 2012 • — — — • Colorado (4) Arch Coal West Elk 700 — — — •——•— Blue Mountain Energy Deserado 800 8.00% < 1.2 2017 • — — • — Peabody Energy Twentymile 2,000 — — — •———• Wolverine Fuels Bowie (Idle) 650 5.50% < 1.2 — •———• Illinois (14) Alliance Resource Partners Pattiki (Idle) 1,200 7.00% > 2.5 2003 • — — — • Alliance Resource Partners Hamilton County 2,000 — — — •———• Alpha Natural Resources Wabash (Idle) —— — — ————— American Coal Co. Galatia (Idle) 3,000 7.50% 2.5 2014 • — •— Arch Coal Viper 700 9.00% > 2.5 2015 • — — • — Foresight Energy Deer Run (Idle) 2,000 9.00% > 2.5 — •——•— Foresight Energy Pond Creek (Mach) 2,000 7.80% 2.5 — •——•— Foresight Energy Shay 850 8.00% 3.5 2009 • — — • — Foresight Energy Sugar Camp 4,200 9.00% 2.5 2014 • — — • — Knight Hawk Coal Creek Paum 550 — — — •———• Knight Hawk Coal Prairie Eagle 850 — — 2012 • — — — • Knight Hawk Coal Red Hawk 250 — — — —••—— Peabody Energy Gateway 1,000 — — 1998 • — — — • Peabody Energy Willow Lake (Idle) 1,400 — — 2003 • — — • — Indiana (17) Alliance Resource Partners Gibson County North (Idle) 950 — 1.2-2.5 2014 • — — — • Alliance Resource Partners Gibson County South 2,000 — 1.2-2.5 — •———• American Resources Corp. Gold Star (Idle) 170 — — — ————— Blackhawk Mining Augusta 250 — > 2.5 2010 — • • — — Blackhawk Mining Freelandville No. 2 400 8.00% > 2.5 2010 • — — — • Blackhawk Mining Log Creek 600 8.50% > 2.5 — •———• Blackhawk Mining Patoka River (Idle) 400 — > 2.5 — •——•— Lexington Coal Holdings Kindill No. 2 (Idle) 1,200 — — — ————— Lexington Coal Holdings Sycamore (Idle) 400 10.50% > 2.5 1997 • • — • — Peabody Energy Bear Run 1,600 — — — •———• Peabody Energy Francisco 650 — — 2008 • — — • — Peabody Energy Somerville Central 600 — — — •———• Peabody Energy (UMI) Somerville North 375 — — — •———• Peabody Energy Wild Boar 650 — — 2010 • — — — • Solar Sources Carbondale 400 — — 1985 — • — • — Sunrise Coal Carlisle 900 — > 2.5 — •———• Sunrise Coal Oaktown 1,600 — > 2.5 2016 • — — — • Kentucky (53) Alliance Resource Partners Dodge Hill (Idle) 300 — — — ————— Alliance Resource Partners Dotiki 2,000 8.00% > 2.5 •———• Alliance Resource Partners Elk Creek 1,200 8.00% > 2.5 — •———• Alliance Resource Partners MC Mining 1,000 8.00% < 1.2 1991 • — — • — Alliance Resource Partners Onton No. 9 700 — — 2011 • — — — • Alliance Resource Partners Pontiki (Idle) 800 8.00% < 1.2 1991 — — — — — Alliance Resource Partners River View 3,000 — > 2.5 2015 — — — — — Alliance Resource Partners Warrior 1,200 — — — •————

20 www.coalage.com October 2018 u.s. prep plant census 2018 continued

Intermediate Sep. Online LD HM WO Fine Coal Centrifugal Analyzers Controls Cycl. Cycl. Tables Froth Spiral Column Dryer(s) E M A Man. PLC DCS Builder Year

•—— —•—• ———•—— — — —•— •———————•— IR 1992 ••— ••——————•• IR 1995 ——— ••—• ————•— Tag 2012 •—— ••—• — — — — • — Mc/Tag 1974 ——— ••—• — — — — • — Mc/Tag 1976 ——— ••—• — • • — • — Mc/Tag 1978

——— ———• ————•— Tag 2010 —•— —•—• —••—•— Mc 1983 —•— —•—• —••—•— Tag 2008 —•— —•—• ——•—•— Dan 2004

•—— —•—• •••••— FMC 1982 —•— ••—• ————•— GMC 2013 ——— ———— •————— R&S 1993 ••— ••—• ————•— R&S 1982 •—— —•—• ————•— R&S 1982 ••— —•• • ————•— CDG 2011 ••— —•• • —•——•— CDG 2006 ••— —•—• ————•— Mc 1970 ••— —•• • ————•— CDG 2011 ——— —•—• ————•— Tag 2000 —•— —••——•———— Tag 2005 ——— —————————— — — ——— —•—• — — — — • — R&S/Tag 1976 •—— —•—• ————•— Ram 2001

——— —•—• •——••— Dan 2000 —•— ••—• ————•— GMC 2014 ——— —————————— — — ——— —•—• ———•—— Co 2002 ——— —•—• ———•—— Co 2005 ——— —•—• ————•— Dan 2011 •—— —•—• ————•— Dan 1990 ——— —————————— R&S 1951 —•— ———• ———••— CPE 1982 —•— —•—• ••——•— Tag 2010 •—— —•—• •———•— Dan 1997 ——— —•—• •———•— Tag 2000 ——— —•—• ————•— GMC 1998 ——— ••—• ————•— GMC 2010 •—— ———— •————— Dan 1985 —•— —•—• — — — — • — Dan/ACS 2007 —•— ••—• • • • — • — Pow/GMC 2008

——— —————————— — — —•— ••—• — — — — • — GMC/Mc 2011 —•— —•—• ————•— GMC 2006 •—— ••—• ———•—— Liv 1974 •—— —•—• ————•— GMC 2004 ——— —————————— Liv 1977 ——— —————————— GMC 2009 •—— —•—• ————•— GMC 2008

October 2018 www.coalage.com 21 u.s. prep plant census 2018 continued

Year of Type of Primary Sep. Raw Product Last Plant HM Company Plant Name Feed Ash % Quality Upgrade HM WO Jig Ves. Cycl.

American Resources Supreme (Idle) 450 10% < 1.2 •——•— American Resources (Deane) Mill Creek 800 8.00% < 2.5 — •——•— American Resources (McCoy Elkhorn) Bevins Branch 1,350 8.50% 1.2-2.5 2010 • • — • — Apex Energy (James H. Booth) Big Creek 450 — — — •———— Arch Coal Raven (Idle) 800 10% < 1.2 2008 • — — • — Blackhawk Mining Blue Diamond No. 64 900 7.00% 1.2-2.5 2010 • — • — — Blackhawk Mining Spurlock 900 — — — •——•— Blackhawk Mining Leatherwood 1,400 7.00% 1.2-2.5 2006 • — — • • Blue Gem Mining Blue Gem (Idle) —— — — ————— Booth Energy Bear Branch (Idle) 400 — — — •——•— Booth Energy Beech Fork No. 1 (Idle) 500 — — — •——•— Booth Energy F.M. Burke (Idle) 550 8.50% 1.2-2.5 1994 • — — • — Booth Energy Perry County 1,350 7.50% 1.2-2.5 — •——•— Booth Energy Clintwood Elkhorn No. 2 650 — — — •——•— Booth Energy Premier Elkhorn 1,100 — — — •——•— Contura Energy Long Fork (Idle) 1,500 — — 2002 • — — • — Contura Energy Martin County (Idle) 1,400 — — — •——•— Contura Energy Sidney - Big Creek 1,500 — — 1991 • — — • — Four Rivers Coal Co. Four Rivers —— — — ————— Harlan Cumberland Coal Highsplint (Idle) 1,200 — — — ————— Harlan Cumberland Coal Totz 600 2.00% < 1.2 — •——•— KenAmerican Resources Paradise No. 9 800 8.00% > 2.5 2011 • — — — • Kentucky Proc. & Equp. Pleasant View (Idle) 900 — — — ————— Kingdom Coal Enterprise - Roxana 875 9.00% 1.2-2.5 2009 • — — • — Lipari Energy Pioneer 350 — — 2010 — — • — — Metinvest Sapphire 1,100 8.00% — 2006 • — — • — Murray Kentucky Energy Midway 600 — — — •———• Murray Kentucky Energy Armstrong Dock 1,200 — — — •———— Murray Kentucky Energy Parkway 400 — — — •———— Nally & Hamilton Enterprises Brookside (Idle) 1,200 — — — ————— NewLead Holdings Coal Essence —— — — ————— Oxford Mining Co. Schoate —— — — ————— Paringa Resources Poplar Grove 400 — — — ————— Pinnacle Processing Pevler (Idle) —— — — ————— Prairie Mining Co. Highland (Idle) 2,000 9.50% > 2.5 •••—— Revelation Energy Red Bird (Idle) 500 — — — ————— Revelation Energy Bell County (Hignite) 650 8.50% 1.2-2.5 2009 • — — • — Revelation Energy Bledsoe No. 1 (Idle) 650 8.00% 1.2-2.5 2009 • — — • — Revelation Energy Cave Branch 1,800 — — — •——•— Revelation Energy Shamrock Beechfork (Idle) 1,400 8.50% 1.2-2.5 2010 • — — • — Rhino Resources Rob Fork 600 — — — •———— Sequoia Energy Sequoia 750 — — — ————— Stella Natural Resources Ivel 500 — — 2007 • — — • — Vision Mining Vision No. 9 (Idle) 250 — — 2004 — — — — — Western Kentucky Minerals Joe’s Run Processing —— — — ————— Maryland (2) Alliance Resource Partners Mettiki 1,350 — — — ————— Arch Coal Dobbin Ridge (Idle) 150 10.0%-18.0% 1.2- 2.5 2010 • — — — — Montana (1) Signal Peak Energy Black Otter 2,000 — — 2017 • — — — • Ohio (18) American Energy Corp. Century 3,000 8.50% > 2.5 2012 • — — — • B&N Coal Orange —— — — ————— Buckingham Coal Buckingham 700 — — — •———• Cline Resources Buckeye 800 — — — •——•—

22 www.coalage.com October 2018 u.s. prep plant census 2018 continued

Intermediate Sep. Online LD HM WO Fine Coal Centrifugal Analyzers Controls Cycl. Cycl. Tables Froth Spiral Column Dryer(s) E M A Man. PLC DCS Builder Year

•—— —•—• ————•— — — •—— —•—• ————•— R&S 1992 ••— —•—• ———•—— — 1980 ••— ••—• —————— R&S — •—— —•—• •———•— Pow 2008 ••— —•—• ———•—— Dan 1989 •—— —•• • ————•— Tag 2007 •—— —•—• ————•— R&S 1990 ——— —————————— — — •—— —•—• •——••— — — •—— —•—• •——••— — — ••— •——• ———•—— Liv 1980 •—— —•—• •——••— Kil 1979 •—— —•—• •——••— — — •—— —•—• •——••— — — •—— ••—• ————•— Pow 1979 ••— —•—• ————•— Dan 1972 •—— ••—• ————•— R&S 1989 ——— —————————— — — ——— —————————— — — ——• ———• ———•—— Dan 1976 •—— ••—• ————•— Bays 2004 ——— —————————— — — ••— ••• • ———••— A&T 1980 ——— —————————— — — •—— —•• • ————•— Mc 1982 •—— —•—• •———•— GMC 2008 •—— —•—• •———•— GMC 2009 •—— —•• • ——•—•— GMC 2009 ——— —————————— — 1968 ——— —————————— — — ——— —————————— — — ——— —————————— — — ——— —————————— — — ••— ———• ••—•—— R&S 1981 ——— —————————— — — •—— —•—• ————•— Dan 1980 ••— —•—• — — — — — — Peters 1985 •—— ••—• ————•— — — •—— —•—• ————•— Pow 1990 ——— —————————— — — ——— —————————— — — •—— —•—• ————•— Tag — ——— — — — — — — — — • — Erwin — ——— —————————— — —

••— —————————— Mc 1978 •—— ••—• ———•—— Co 1997

——— —•—• ————•— Tag 2009

•—— —•• • — — — — • — A&T/LCE 2002 ——— —————————— — — ——— —•—• ————•— Tag 2009 •—— —•—• ————•— Tag 2009

October 2018 www.coalage.com 23 u.s. prep plant census 2018 continued

Year of Type of Primary Sep. Raw Product Last Plant HM Company Plant Name Feed Ash % Quality Upgrade HM WO Jig Ves. Cycl.

East Fairfield Coal Co. East Fairfield 200 — — — ————— OhioAmerican Energy Inc. Star Ridge (Idle) 425 8.00% > 2.5 — •———• Oxford Mining Co. Conesville 800 — — 2015 • • • — — Oxford Mining Co. Oxford —— — — ————— Penn Ohio Coal Co. Stonecreek —— — — ————— Rhino Resources Nelms —— — — ————— Rhino Resources Sands Hill 300 — — — ————— Rosebud Mining Bigler 300 — — — ————— Rosebud Mining Kensington 335 27.00% < 1.2 1995 • • — • • Rosebud Mining Mine No. 78 600 — — — ————— Rosebud Mining Tusky 300 — — — •———• State Line Resources Negley (Idle) 200 — — — •——•— Waterloo Coal Co. Benedict 250 10.00% < 2.5 — —••—— Waterloo Coal Co. Dundas 375 8.00% < 2.5 — •———• Pennsylvania-Anthracite (17) Atlantic Coal Stockton —— — — ————— Black Creek Breaker Co. Black Creek —— — — ————— Blaschak Coal Corp Blaschak —— — — ————— Blaschak Coal Corp Latimer —— — — ————— Calvin V. Lenig Coal Prep Lenig —— — — ————— Carbon & Metal Tech Pine Creek —— — — ————— D Dale Lenig Lenig Dale —— — — ————— Gale Mining Co. Ginther —— — — ————— Lehigh Anthracite Greenwood 300 — — — •——•— Lenig & Kosmer Glenn Lenig —— — — ————— Meadowbrook Coal Co. Meadowbrook —— — — ————— Molesevich & Sons Construction Co. Atlas —— — — ————— PAC 23 Mining Co Split Vein —— — — ————— Reading Anthracite New St. Nicholas 1,000 — — — ————— Schuylkill Coal Schuykill —— — — ————— Sherman Coal Co. Sherman —— — — ————— Superior Coal Prep Superior —— — — ————— Pennsylvania-Bituminous (22) CONSOL Energy Bailey Central 8,200 8.00% < 2.5 2013 • — — • — Contura Energy Cumberland 1,600 8.25% > 2.5 1996 • — — • — Contura Energy Emerald 1,850 8.00% > 2.5 2003 • — — • — Corsa Coal Cambria 425 <9.0% <1.2 — •———• Corsa Coal Shade Creek 650 <12.0% < 1.8 2008 • — — • • Homer City Processing Homer City 1,200 12.00% < 2.5 1996 • — — — • ICS Energy Group LLC Wilson Creek 400 6%-9% < 1.2 — •———• Jericho Fuels Tipple 4J —— — — ————— Jill Mining Cunnard —— — — ————— Murray American Energy Eighty Four (Idle) 1,000 7.00% < 2.5 — •——•— Original Fuels Original Fuels 650 — — — ————— PennAmerican DiAnne 500 — — — —••—— Piney Creek Piney Creek (Idle) —— — — ————— River Hill Coal Tosco 350 8.00% < 1.2 2008 • — — — — Robindale Energy Services RES Plant 300 8.00% < 1.2 — •———• Rosebud Mining Amfire-Clymer 250 6.5%-8.75% < 1.2 2005 • — — Drum — Rosebud Mining Amfire-Portage 300 6.5%-8.75% 1.2-2.5 2010 • — — • — Rosebud Mining Dutch Run 175 — — — •———— Rosebud Mining Lady Jane —— — 2005 — — — — — Rosebud Mining Logansport —— — — ————— Rosebud Mining McVille —— — — ————— Unitmix Unitmix No. 1 —— — — —————

24 www.coalage.com October 2018 u.s. prep plant census 2018 continued

Intermediate Sep. Online LD HM WO Fine Coal Centrifugal Analyzers Controls Cycl. Cycl. Tables Froth Spiral Column Dryer(s) E M A Man. PLC DCS Builder Year

——— —————————— — — •—— —•—• ————•— LCE 2007 ••— • — — — — — — — — — NH/ACS 1984 ——— —————————— — — ——— —————————— — — ——— —————————— — — ••— —————————— — — ——— —————————— — — —•— —•—• ••••—— Mc 1980 ——— —————————— 2008 ——— —•—• ————•— Tag 2008 ——• ———• —————— — — —•— ———• ———•—— Co 1976 —•— —•—• ———•—— Co 1980

——— —————————— — — ——— —————————— — — ——— —————————— — — ——— —————————— — — ——— —————————— — — ——— —————————— — — ——— —————————— — — ——— —————————— — — •—— —•———————— Wil 1962 ——— —————————— — — ——— —————————— — — ——— —————————— — — ——— —————————— — — ——— —————————— — 1963 ——— —————————— — — ——— —————————— — — ——— —————————— — —

•—— ••—• •••—•• R&S 1983 •—— ••—• •••—•— Dvo 1978 ••— ••—• •••—•— R&S 1977 —•— —•—• ————•— Tag 2009 •—— —•—• ————•— Tag 1966 •—— ••—• —••••— H&P 1978 ——— —•• • ————•— Tag 2011 ——— —————————— — — ——— —————————— — — ••— ••—• •••—•— F&P 1996 ——— —————————— — — ——— ••—• —————— Wil 1962 ——— —————————— — — ——— —————————— — 1976 ——— ••—• ————•— Tag 2012 ——• —•• • ———••— — 1976 •—— ••—• ———••— Mc 1972 —•• ••—• —————— Co 1990 ——— —————————— — — ——— —————————— — 2005 ——— —————————— — 2001 ——— —————————— — —

October 2018 www.coalage.com 25 u.s. prep plant census 2018 continued

Year of Type of Primary Sep. Raw Product Last Plant HM Company Plant Name Feed Ash % Quality Upgrade HM WO Jig Ves. Cycl.

Tennessee (3) Cumberland Coal Co. Turner 200 — — — ————— Mountainside Coal Co. Mountainside —— — — ————— Ranger Energy New River (Idle) 250 10.00% < 1.2 — •———• Utah (3) Energy West Cottonwood —— — — ————— UtahAmerican West Ridge 600 — — — ————— Wolverine Fuels Castle Valley 500 11.00% — 2005 Virginia (19) Arch Coal Pardee 750 8.20% < 1.2 2005 • — — • • Booth Energy Clintwood Elkhorn No. 3 650 — — — •——•— Cheyenne Processing Cheyenne (Idle) 600 — — — ————— Contura Energy McClure River 1,100 6.75%-12% < 1.2 1988 • — — • — Contura Energy Moss No. 3 (Idle) 825 6%-14% < 1.2 2010 • — — — — Contura Energy Tom’s Creek 1,100 7%-12% 1.2-2.5 2004 • — — • — Coronado Coal Amonate (Idle) 600 5.00% < 1.2 — •——•— Coronado Coal Buchanan 1,300 5.00% < 1.2 2007 • — — • — Donna B. Processing Donna B. No. 1 —— — — ————— Elite Tipples Blackwood No. 2 —— — — ————— Metinvest Nora 400 8.00% — — •——•— Metinvest Wellmore No. 8 1,000 7.00% — 2011 • — — — — Ramaco Resources Knox Creek 650 — — 2010 • — — • — Red River Coal Stoker —— — — ————— Red River Coal Red River No. 1 —— — — ————— Revelation Energy Lone Mountain 1,150 6.00% < 1.2 2004 • — — • • Revelation Energy Coronet Jewell 900 6.80% < 1.2 — •——•— Revelation Energy Pigeon Creek 1,400 — — — •——•— Sigmon Coal Co. Sigmon —— — — ————— West Virginia (70) Alliance Resource Partners Tunnel Ridge 1,800 8.00% •——•• Arcelor Mital Eckman 500 — — 2011 • — — • — Arch Coal Baybeck (Idle) 300 — — 1996 • — — — — Arch Coal Beckley 600 6.0%-10.0% < 1.2 2013 • — — • — Arch Coal Cardinal 1,400 7.00% < 1.2 2015 • — — • — Arch Coal Dobbin Ridge 300 7%-18% .08-2.5 2012 • — — — • Arch Coal Eastern (Idle) 800 10.00% 1.2-2.5 2001 • — — • — Arch Coal Holden 22 550 11.00% < 1.2 2005 • — — • — Arch Coal Leer 1400 7.00% < 1.2 2012 • — — — • Arch Coal Sawmill Run (Idle) 700 9.0%-15.0% 1.2-2.5 2007 • — — • — Arch Coal Sentinel 575 9.0%-12.0% 1.2-2.5 2013 • — — • — Award Development Slaughter Creek (Idle) —— — — ————— Bay Star Coal Co. Big Creek —— — — ————— Blackhawk Mining Blue Creek 900 •———• Blackhawk Mining Fanco 650 10.00% < 1.2 2004 • — — • — Blackhawk Mining Hampden 600 <4.00% < 1.2 — •——•— Blackhawk Mining Kanawha Eagle 800 6.00% < 1.2 2001 • — — — • Blackhawk Mining Panther 1,200 10.00% < 1.2 2005 • — — • • Blackhawk Mining Rocklick 2,800 9.00% 1.2-2.5 2000 • — — • — Blackhawk Mining Toms Fork 700 13.00% 1.2-2.5 2004 • — — — • Blackhawk Mining Wells 2,000 8.00% 1.2-2.5 2000 • — — • — Booth Energy Kiah Creek (Idle) 400 — — — • — — • — Booth Energy Miller Creek 800 12.00% < 2.0 2006 • — — • — Booth Energy Peach Orchard (Idle) 550 12.00% < 1.2 — •——•— Booth Energy Terry Eagle (Idle) 400 — — — •——•— Contura Energy Delbarton 800 — — — •——•—

26 www.coalage.com October 2018 u.s. prep plant census 2018 continued

Intermediate Sep. Online LD HM WO Fine Coal Centrifugal Analyzers Controls Cycl. Cycl. Tables Froth Spiral Column Dryer(s) E M A Man. PLC DCS Builder Year

——— —————————— — — ——— —————————— — — •—— —•—• ————•— Mc 1988

——— —————————— — — ——— —————————— — — Centry 2005

—•— ••• • •———•— Pow 1995 •—— —•—• •——••— — — ——— —————————— — — •—— ••—• ———••• R&S 1979 •—— ••—• ———••— Pow 1992 ••— ••• • — — — — • — Dan/Tag 1980 •—— •——• ———•—• Co 1978 •—— •——• •——••• IE 1984 ——— —————————— — — ——— —————————— — — •—— •——• ———•—— Pow 1981 •—• ••—• ————•— Pow 1978 •—— ••—• ———••— Pow 1978 ——— —————————— — — ——— —————————— — — •—— —•• • •••—•— Pow 1981 •—— •—————•••— Liv — •—— ••—• ————•— — — ——— —————————— — —

•—— —•• • ————•— Tag 2010 ••— ••• • •••—•— Tag 2007 •—— ••—• ———•—— Co 1992 •—— ••—• •••—•— Pow 2007 •—— ••• • •———•— IR 2006 •—— ••—• ————•— Pow 1997 •—— —•—• ————•— Dan 1992 •—— —•—• • — — — • — Liv — •—— ••—• •———•— Pow 2012 •—— •——• ———•—— R&S 1979 •—— ••—• ———•—— R&S 1972 ——— —————————— — — ——— —————————— — — ——— —•—• ————•— Tag 2009 •—— —•—• • • • — • — Brooks 1994 •—— ••—• — — — • — — Peters — •—— —•—• ————•— Tag 2000 —•— •———————•— — 1996 •—— ••—• ——•—•— R&S 1986 •—— —•—• • • • — • — Dan/Pow 1995 •—— •——• ——•••— R&S 1978 ——— —————————— ••— —•—• ————•— — — •—— —•—• ——•—•— L-A 1994 ——— —————————— Dan 1978 •—— ••—• —————— — —

October 2018 www.coalage.com 27 u.s. prep plant census 2018 continued

Year of Type of Primary Sep. Raw Product Last Plant HM Company Plant Name Feed Ash % Quality Upgrade HM WO Jig Ves. Cycl.

Contura Energy Homer III/Black Castle 2,200 — — 1998 • — — • — Contura Energy Kepler 900 6.50% — 1999 • — — • — Contura Energy Kingston 700 6.50% — 2010 • — — • — Contura Energy Mammoth 1,400 — — — •——•— Contura Energy Marfork 2,400 6.00% < 1.2 2002 • — — • — Contura Energy Power Mountain 1,200 6.00% <1.2 2000 • — — • — Contura Energy Rum Creek/Bandmill 1,200 — — — •——•— Coronado Coal Mountaineer Pocahontas 600 — — 2012 • — — — • Coronado Coal Saunders 900 — — — •——•— ERP Compliant Big Mountain 900 12.00% < 2.5 1998 • — — • — ERP Compliant Federal (Idle) 1,300 6.70% 1.2-2.5 1998 • • — • — ERP Compliant Harris (Idle) 600 12.00% 1.2-2.5 1983 • — — • — ERP Compliant Fuels Remington (Idle) 600 13.50% — 2005 • — — — • Frasure Creek Mining Deep Water (Idle) —— — — ————— JSW Steel Caretta 500 — — — ————— Lexington Coal Co. Black Bear (Idle) 1,800 6.2%-9.1% < 1.2 2004 • — — • — Lexington Coal Co. Goals (Idle) 600 6% — 2001 • — — • — Lexington Coal Co. Litwar (Idle) 450 5.5%-6% — 2010 • — — • — Lexington Coal Co. Moore (Idle) 800 — — — •——•• Lexington Coal Co. Sprouse Creek (Idle) 1,400 — — — •——•— Lexington Coal Co. Stirrat (Idle) 450 — — — •——•— Mepco Coresco 500 — — — •———• Murray American Energy Harrison County 1,500 10.00% > 2.5 — •——•— Murray American Energy Marion County 1,400 8.50% > 2.5 — •—••— Murray American Energy Marshall County 2,800 9.50% > 2.5 — •——•— Murray American Energy Monongalia County 1,500 8.00% > 2.5 2000 • — • • — Murray American Energy Ohio County 1,800 9.50% > 2.5 2015 • — — • — Ramaco Resources Elk Creek 700 — — — •———• Rhino Resources Tug Valley 1,800 < 10.5% > 1 2000 • — — • — Seminole Coal Resources (ERP) Gauley-Eagle 600 8.00% < 1.2 2006 • — — • — Seminole Coal Resources (ERP) Katie 450 <4.0 & <8.0 < 1.2 2008 • — — • — Seneca Coal Resources (ERP) Pinnacle 1,250 — — — •—••— Southern Coal Bishop 600 8.00% — — •———• Southern Coal Coal Mountain 300 — — — •———• Southern Coal K2 (Idle) 500 — — — •———• Southern Coal Red Fox (Idle) 300 — — — •———• Superior Processing Superior —— — — ————— TMR Loading & Processing Edna Ruth (Idle) —— — — ————— United Coal Affinity 500 8.00% — •———• United Coal East Gulf 600 6.75% — 2007 • — — — • United Coal Star Bridge 500 9.00% — — •———— Xinergy Bull Creek 300 — — — •———• Xinergy Clearco 300 — — — •———• XMV Black Wolf (Idle) —— — — —————

Key to plant designers: A&G=Allen & Garcia, A&T=A&T Manufacturing, AIR=AIRC, Bri=Bristol Steel, CDG=Coalfield Development Group, CEE=CEE Engineering, Chil=Childress Services, CLI=CLI, Corn=Cornette Engineering, CPE=Coal Processing Engineers, Co.=designed by the mining company, Cyc=Cyclone Machine, Dan=Daniels, Dvo=Dravo, EIW=Eagle Iron Works, EIM=Eimco, Env=Envirotech, Erw=Erwin Industries, F&P=Farnham & Pfile, FMC=FMC, Far=Fairmont Machine, GMC=General Mine Contracting, H&P=Heyl & Patterson, H-S=Holmes- Shaney, Ind=Indiana Steel, IN=Industrial, IR=Industrial Resources, Int=Interstate, Jef=Jeffrey, KHD=KHD Humboldt Wedag, Jam=F.F. Jameson, Kai=Kaiser, Kil=Kilborn Engineering, L-B=Link-Belt, Lin=Lincoln Contracting, Liv=J.O. Lively, L-A=Long-Airdox, Mc=McNally Systems, MP=Minerals Processing, NH=Norton Hambleton, Nor=Norwest, Pet=Peters Equipment, Pow=Powell Construction, PM=Process

28 www.coalage.com October 2018 u.s. prep plant census 2018 continued

Intermediate Sep. Online LD HM WO Fine Coal Centrifugal Analyzers Controls Cycl. Cycl. Tables Froth Spiral Column Dryer(s) E M A Man. PLC DCS Builder Year

•—— ••—• ————•— Mc 1980 •—— ••—• ———•—— H&P 1968 •—— ••—• ——•—•— — 1974 •—— —•• • ————•— — — •—— ••• • ————•— Pow 1994 •—— ••—• •••—•— R&S 1985 •—— ••—• —————— Pow 2010 ——— ••—• ————•— Tag 2007 •—— —•• • ————•— Tag 2009 •—— ••—• ————•— — 1975 ••— •——• ••——•— R&S 1968 •—— ———• —••—•— R&S 1968 •—— —•• • ————•— Ind 1998 ——— —————————— — — ——— —————————— Dan 2017 •—— ••—• •••—•— R&S 1992 •—— ••—• ————•— — — •—— ••—• ———•—— Liv 1980 •—— —•• • ————•— Pow 2009 •—— ••—• ————•— Dan 1978 ••— •——• —————— — — ——— —•• • ————•— Tag 2009 ••— ••—• •———•— F&P 2006 •—— ••—• ————•— Far 1970 ••— ••—• •———•— F&P 2002 •—— ••—• ———••— Liv 1970 ••— ••—• •——••— Co 1967 •—— ••—• ————•— Raw 2017 •—— —•—• ———••— R&S 1981 ——— ••—• ————•— Co 1975 ——— ••—• ————•— Tag 1980 —•— •——— •••——— A&G — ——— ••—• ————•— Tag 2013 —•— —•—• ————•— Tag 2007 •—— —•• • ————•— Dan 2010 —•— —•—• ——•—•— Tag 2006 ——— —————————— — — ——— —————————— — — ——— ••—• ————•— Tag 2011 •—— ••—• — — — • • — R&S/Pow 1952 •—— ••—• ————•— Ind 2006 •—— —•—• — — — — • — ACS/Raw 2013 ——— —•—• ————•— Dan 2013 ——— —————————— — —

Machinery, Ram=Ramsey, Raw=Raw Resources, R&S=Roberts & Schaefer, Rol=Roller, See=Seeco, Sim=Simon Carves, Tag=Taggart (DRA Global acquired Taggart), Wil=Wilmont, Wem=Wemco Key to header: Raw feed = capacity (tons per hour), Quality = lb-SO2/mmBtu (<1.2, low sulfur; 1.2-2.5, medium sulfur; and >2.5, high sulfur), HM=Heavy Media; WO=Water Only, LD=Large Diameter (greater than 30 inches), Cycl=Cyclones, Ves. = Vessel, Analyzers: ash, A; elemental, E; and moisture, M. Controls: Man = Manual, PLC = Programmable logic controller, and DCS = Distributed control system Key to coal companies: Alliance = Alliance Coal Co., AMCI = American Metals & Coal Int’l, CONSOL = CONSOL Enegry

October 2018 www.coalage.com 29 ventilation controls Retrof it-ready Solutions Target Primary Needs

With a market increasingly in search of options, suppliers promote solutions that speak to efficiency and safety concerns for brownfield projects

by jesse morton, technical writer

Right now, in the big fan space stateside, half-decade that needs to be either up- Reduced Costs and Cleaner Air there are distinct opportunities for those graded or replaced.” SMJ Fans reported that the Shotgun with the right offerings, connections and Aware of this, players in the sector are Scrubber, a dual-independent leg timing, according to longtime expert, releasing and promoting solutions that wet-scrubbing system, is field-proven Bryon Cerklefskie. “When you look at speak to the loudest needs of the head after four years of operation at a mine the tax incentives now for capex proj- office, solutions that offer increased effi- that produces roughly 5 million tons of ects, people are ready to move,” he said. ciency and safety, and that require min- low-vol met coal per year. “And you have all this antiquated equip- imal adjustments downstream. Here is a The feedback from the miner, Vir- ment that sat around for much of the last review of some recent developments. ginia’s Buchanan Minerals, subsidiary

The Shotgun Scrubber can be custom-designed for specific needs. (Photo: SMJ)

30 www.coalage.com October 2018 ventilation controls continued of Coronado Global Resources, took the At Buchanan, it resolved the main And it can be custom-designed to form of praise and additional orders for issues and concerns, and then offered modify a pre-existing fan system. “This the solution, Jason Lionberger, opera- additional benefits, Lionberger said. “We system is a platform,” Lionberger said. tions manager, SMJ Fans, said. “They like were able to go in and with each leg pro- “Regardless what performance specifi- it,” he said. “It saved them money.” vide the performance they needed with cations a customer might have, we can Buchanan initially reached out to one motor,” he said. “We were able to go design a scrubber based off of our cur- SMJ in search of a more effective scrubber with a single 75 hp fan per leg.” rent platform to fit their needs.” for its dual leg system that would increase The solution’s wet scrubbing sys- Resolving those needs to “help im- overall system efﬁciency and trim costs. tem is approved under Mine Safety prove the lives of the miners” is one of SMJ’s “They were unhappy with the system they and Health Administration SCH-2G main missions, Lionberger said. “We want- had,” Lionberger said. “The main issues guidelines. It “hydrates particulate dust ed this system to save the mine money, in they were having is they were spending down to the 0.3 micron-level and re- terms of maintenance and replacement a lot of money each year on impeller re- moves it from the air stream” upstream costs, and to improve the working condi- builds. A big concern of theirs was being of the fan, SMJ reported. It can be de- tions for the guys underground,” he said. able to scrub before the fan section with- signed for 5- to 100-hp fans, offers a “It is extremely important to ﬁlter out that out a great deal of loss.” maximum rated volume of 25,000 ft 3 dust so there are less particulates, to quiet At the time, SMJ offered a wet scrub- per minute, and can remove up to 45 lb down the units, and to limit the amount of bing platform that could serve as a seed of dust per hour. maintenance they have to perform.” idea for a possible solution. “We went out to the mine and met with them and saw what their needs were and came back, mulled things over, and tried to come up with a design that would work,” Lionberger said. Each leg of Buchanan’s existing system employed one contra-rotating fan unit, consisting of two coupled fan as- semblies. Each assembly used a motor rated at 60 horsepower (hp), for 120 hp per unit. The miner had rigid performance specs for each leg, Lionberger said. “They had one leg running up to the mining face, and then they had another leg going to a different area,” he said. “They had a minimum performance specification that we had to meet while still utilizing their same ducting in terms of diameter, length of run, and changes of direction.” SMJ hit the drawing board. “We basi- cally had a year of development testing,” Lionberger said. Within that time frame, the company developed and installed a prototype. “We designed a new 32-in. fan that would do this.” The miner put it to work. Based on the early feedback, “we refined the design adding features and modifying others,” he said. The resulting double-barreled scrubber features patent-pending technology, “scrubs the air more efficiently” pri- or to reaching the fan to “reduce wear and tear on the fan system,” and can “provide clean air in any condition,” SMJ reported. Above, CFE engineers install fans and attenuation systems. (Photo: LMS)

October 2018 www.coalage.com 31 ventilation control continued

Coming to America: Reversible Axial Flow Fans In Q1 2018, Longwall Mining Services (LMS) entered a dis- tributorship agreement with CFE Technology GmbH, headquartered in Zweibrücken, Germany. Under it, LMS will be the North American mining and power generation sector vendor of CFE’s entire line of fan technology, according to Bryon Cerklefskie, LMS vice president, sales and marketing. The agreement expanded LMS’s portfolio of offerings and brings to the North American coal mining market technologies and solutions competitive to those already available, Cerklefskie said. “This rounded out our ability as a company to supply anything from small baby fans up to the biggest of big fans,” he said. “They’ve got fan technology that seems to be little bit more advanced than what other companies have.” For example, CFE’s high-capacity axial-flow fans with in- flight variable pitch control can be put into reverse at the push of a button, Cerklefskie said. “You don’t have to stop it all the way and adjust blades,” he said. Once in reverse, the fans operate at the desired specifications, Cerklefskie said. “These are highly efficient in reverse, which has to do with how the blade profile is formed,” he said. Norbert Kuhn, managing director, CFE, said the company’s reversible mine fans “offer the highest efficiencies for forward and reversed operation.” Push-button reversibility, “which allows changing the pitch angle of the blade by more than 180°,” is made possible by “hydraulic adjustment,” CFE reported. The blades can be adjusted in mid-operation or at standstill. The solution is designed “to save human life in case of fire, explosion and firedamp in underground mines.” The fans can be made of cast aluminum, CFE reported. They feature horizontally split housing to provide ease of maintenance and accessibility. The blade shafts and main bearings are designed to extend maintenance intervals. Thus, the fans present only moderate capital costs, and generate low energy and maintenance costs, CFE reported. Beyond axial flow fans, CFE manufactures absorption si- lencers, acoustic insulation and lagging for use in underground exhaust fan systems. The perforated baffle silencer is customized to the application. “Designed to provide the requested attenuation at minimized pressure drop, this silencer is appropriate for a wide range of sizes and volumes,” CFE reported. “ Acoustic insulation and lagging, which softens the noise from fan casings and ductwork, can also be custom ordered. “The required dampening is considered individually for each application and may include additional acoustic material thickness or anti-drumming foil for more stringent requirements,” CFE reported. CFE’s solutions can be for greenfield, brownfield and retrofit projects. The agreement situates CFE to penetrate markets previously closed to them due to economic conditions or the posture of the players already in the market, Cerklefskie said. “They’ve had a hard time cracking into our market,” he said. With the typical ventilation project being plotted and contracted out several years ahead of

32 www.coalage.com October 2018 ventilation controls continued launch due to “motor and other component lead time, you’ve got to have a rep that is connected and to know about an opportunity in advance and then chase it for quite some TM time,” he said. Strata AFS The agreement also empowers LMS with more competitive comprehensive package offerings. “We can go in and be full-ventilation suppliers for all aspects of mining,” Cerklef- Advanced Foam Solution skie said. “The nice thing is it doesn’t just apply to longwalls. Any underground mine will use the main ventilation fan.” The current economic environment is favorable to CFE’s entry to the North American coal mining market, Cerklefskie Rock Consolidation, said. “Really what happened was the downturn, through the previous administration, really choked out a lot of people,” Void Fill & Water Control he said. “Now it seems like the environment is flourishing and people want options.” Multiple Custom Applications Many of the materials and components for orders from North American customers will “be sourced in the U.S. and good old Ohio where I live,” Cerklefskie said.

System Simulation Software Upgrade Howden released VentSim DESIGN version 5, which the company described as “the biggest step change improvement in power and features” since the release of precursor software in 2009. The software enables the rapid creation of simulations and virtual models of ventilation systems and the virtual trial of changes to them. The upgrade offers increased simulation speed and reduced memory usage, Howden reported. New features include a Sensitivity and Confidence Analysis tool for airflow, heat and natural ventilation; a Goal Seek tool, which determines the requisite fan pressure to achieve required airflow; and a new simulation engine with a 1,000% increase in solving speed, the company reported. The software enables the user to model escape routes, map the fastest course to refuge bays and exits, and calculate evac- uation times. The interface offers a “refreshed look and feel,” Howden reported, and includes a Level Wizard, which can “auto- matically setup a series of default levels based on the model airways.” It also offers a new dashboard to compare differences between logged and simulated airflows. The system can “connect directly to ventilation network devices” and “manual controls in real time,” Howden reported. VentSim DESIGN 5 is promoted as ideally paired with VentSim CONTROL, which interfaces with existing infrastructure using open connectivity for real-time control and monitoring of mine-wide ventilation systems.

Consulting Services on Explosive Dust Camfil APC announced its range of consulting and technical services helps operators ensure their dust collection systems tel: +1-800-691-6601 comply with National Fire Protection Association standards. Those services focus on hazard analysis, risk assessment, and email: [email protected] fire and explosion prevention control design criteria. The company offers site and equipment assessments, technology www.strataworldwide.com recommendations, and in-house lab testing.

October 2018 www.coalage.com 33 corrosion New Techniques for Tackling Corrosion As the saying goes, rust never sleeps, but mine and plant operators are waking up to new technologies for controlling it

by russell a. carter, contributing editor

IMPACT—The International Measures of Prevention, Application and Economics of Corrosion Technologies was released in 2016. One of its most significant findings was that the global cost of corrosion at the time amounted to an estimated $2.5 tril- lion, which was equivalent to 3.4% of the global Gross Domestic Product (GDP) at that time. The study determined that reducing the astoundingly high cost of corrosion would require a change in how decisions are made. For example, while it is important to continue investing in technology for corrosion control, putting this technology into an organizational management system The cost of corrosion is usually expressed in terms of ‘direct’ costs, but the actual number context and justifying corrosion control ac- can be much higher when indirect costs are added, such as labor attributed to corrosion tions by business impact is essential. management activities; equipment required because of corrosion-related activities; loss of Building on the study’s findings, the revenue due to disruptions in production; and loss of reliability. (Photo: Chemco) NACE International Institute (NII), an af- filiation of NACE International focused on From a global mining viewpoint, corrosion from simple inspection checklists that helping companies improve their perfor- of materials and equipment might best be can be completed by an on-site employ- mance with corrosion management sys- described as a universal problem that de- ee and used by suppliers to recommend tems and certification of personnel, started mands localized solutions. Differences in an appropriate product; or material and development of a platform to benchmark ore characteristics, extraction processes corrosion mapping audits conducted by practices and improve corrosion manage- and chemicals, or environmental condi- specialist organizations; to top-down, ment across all industry sectors. tions mean that a corrosion-preventative enterprise-wide corrosion studies and ac- “Soon after we released the IMPACT product that works well at one site might tion plans. It’s been estimated that up to study, we began to hear from respon- be less effective at another. a quarter of all industrial corrosion prob- dents and focus group participants that Although there are plenty of products lems could be prevented by employing es- they needed tools to put the report’s find- available to help solve the industry’s corro- tablished, well-documented techniques. ings into practice,” said Elaine Bowman, sion concerns, it can be expensive to sink IMPACT PLUS project manager. “They money into a one-size-fits-all solution Combining Technology and Management couldn’t find any products to facilitate im- that doesn’t meet the specific conditions One of the most ambitious recent efforts to proved practices and asked us to develop a of a particular problem. Experts say there organize and simplify corrosion manage- process that would help their companies is no simple rule of thumb for selecting the ment and prevention began in 2014 when manage, monitor and improve their corro- most suitable coating product or system. NACE International conducted a global sion management activities.” Taking into account the many factors that study designed to go beyond the economic Working with the American Produc- promote corrosion requires a disciplined effects of corrosion. It focused on how to tivity & Quality Center (APQC) — which approach to solve — or at least manage — integrate corrosion technology with orga- specializes in benchmarking, best prac- corrosion problems. nizational management systems. NACE, a tices, process and performance improve- The recommended and most cost-ef- professional organization headquartered ment, and knowledge management. NII fective approach is to study a corrosion in Houston, Texas, USA, and originally developed IMPACT PLUS, released in problem first before choosing a product. founded as the National Association of December 2017, as an online network of Use tools currently available from sup- Corrosion Engineers in 1943, is considered tools, including a customized corrosion pliers and professional organizations to an authoritative source for corrosion man- management process classification frame- identify the cause and develop a solution. agement training and technology, with work, corrosion management maturity These range in complexity and scope about 36,000 members in 130 countries. model, and an extensive reference library.

34 www.coalage.com October 2018 corrosion continued

IMPACT PLUS users have the option to manage their own use of the product or work with a trained navigator with corrosion management and consulting expertise. Navigators help customers evaluate and compare their current asset management processes and advise them on future asset protection and corrosion management strategies. IMPACT PLUS offers a wide range of features, according to its developers, including: • An integrated platform for corrosion management professionals; • A common language and structure needed to ensure communication This diagram from NACE’s IMPACT study illustrates the interaction between corrosion throughout all levels of an organization; management systems (CMS) and other organizational management systems. • A straightforward way for companies to identify gaps in processes that Services available through Accenture’s Picking the Perfect Product could lead to the reduced lifecycle of program include: A quick scan of the list of available cor- assets due to mechanical, integrity or • Risk-based inspection methodology; rosion-preventative coating types illus- human error; • Asset integrity division readiness; trates the potential difficulty of selecting • A Corrosion Management Maturity • System and data integration enabled the right product for a specific problem. Model that creates a roadmap of ac- by its Data Analysis and Processing Common coatings, for example, include tivities, investments, and best prac- Tool (ADAPT); cross-linked or thermoset coatings, ep- tices that lead to higher performance; • Image and video analytics to detect oxy resins, polyurethane resins, alkyd res- • A Corrosion Management System surface defects and signs of corrosion; ins, inorganic resins and thermoplastics, Framework, which is an organiza- • Advanced analytics and deep learn- among others — and each of these cate- tional structure that enables effective ing using maintenance, design, oper- gories has certain benefits and application corrosion mitigation while providing ations, environmental and historical requirements. Specific products within a positivereturn on investment; and data; each category may have their own subset • A reference library to manage know- • Real-time, interactive equipment of features, intended usage and targeted ledge and information collected monitoring by combining 3D model- substrates. A few examples: through all components of the portal. ing with its Active Network Model for Certain resin types such as polyvi- Corrosion Management; and nylidene fluoride (PVDF) can be used in Going Digital • Digital inspection technologies, in- sprayable form or molded into various Other companies are pursuing digital cluding nanotechnology, ultrasound, shapes and are now available in powder solutions for controlling corrosion, of- laser spectrometry and optical coatings that offer a new avenue for ac- fering solutions largely drawn from tech- non-destructive testing. cessing PVDF’s ability to protect metal sub- nologies used in the petroleum/gas sec- GE Inspection Technologies also strates used in mining and mineral process- tor where corrosion can lead to disaster. said it is developing a family of corrosion ing from corrosion, abrasion and chemical For example, Accenture offers “digitally management and inspection tools, with attack. PVDF, according to suppliers, can enabled” corrosion management ser- initial focus on corrosion monitoring. Its succeed in applications where other types vices and solutions that employ a three- first product in this area is a predictive of materials such as fiberglass-reinforced pronged approach involving IoT, data corrosion management application run- plastic (FRP), elastomeric and urethane lin- visualization and advanced analytics to ning on GE’s Predix platform and utilizing ers have prematurely failed. Major chemi- help companies achieve optimum asset RightTrax PM ultrasonic sensors installed cal companies such as Arkema and Solvay value several different ways. This includes to provide coating-thickness monitoring. market their PVDF products under the through increased certainty of zones/lines This approach, said GE, offers real-time brand names Kynar and Hylar, respectively. at risk; reduced scope and frequency of thickness measurement and the ability to Another relatively new type of coating inspections; reduced cost and asset down- perform advanced data analytics and visu- is chemically bonded phosphate ceram- time due to inspections; increased asset alizations. It will allow users to move from ics or CBPCs. EonCoat is one of these — a life; and improved worker safety. Accord- point-in-time to continuous thickness spray-applied industrial coating that pre- ing to Accenture, these improvements can measurement, and thus enable customers vents rust on carbon steel. EonCoat “phos- provide a 10-20% reduction in inspection to improve asset integrity management phates” the steel to which it is applied, costs, 10% or more increase in uptime and while opening the door for innovative forming an amorphous magnesium iron productivity, and improved asset integrity, ways to utilize this data to optimize plant phosphate layer. This layer, chemically increasing asset life by more than 20%. and process performance. bonded to the steel, is the first line of de-

October 2018 www.coalage.com 35 corrosion continued

fense against corrosion. A white ceramic its HinderRUST S4.0 rust inhibitor recent- Protecting Control Equipment layer then forms over the alloy layer. This ly passed extensive testing at the Welder To be sure, not all corrosion-preventative ceramic layer, the second line of defense, Training and Testing Institute (WTTI) in solutions focus on the steel and concrete provides a reservoir of phosphate corro- Allentown, Pennsylvania, USA, to assure substrates that constitute much of the min- sion protection to continuously maintain welders that they can weld steel directly ing industry’s asset base. The degradation the alloy layer. The coating was developed through this HinderRUST formulation. of electrical control equipment by corro- and patented several years ago by North HinderRUST S4.0 is used in the metal sive gases and substances is a well-known Carolina, USA-based EonCoat LLC. fabrication industry to prevent corrosion process and, as air filtration specialist SPI Performance Coating, a U.K. dis- of steel. Solvent-free S4.0 can be applied to Camfil pointed out, heavy industries such tributor for EonCoat, recently reported that steel parts or plates by brush, roller or aerosol as mining are becoming increasingly reli- one of world’s largest underground mines spray can, and it will immediately displace ant on electronic and electrical controls for had used it successfully to extend the life moisture on the treated surface and protect the safe and efficient operation of various of a troublesome process hopper that han- the steel from rust for up to two years. -— often automated — processes. In many dles thousands of tons of iron ore material Fluoramics said it was interested in industrial environments, the external air weekly. Natural salts contained within the determining if strong, secure welds can around a facility may contain acidic gas- material, combined with water condensa- be made to steel treated with S4.0, and es. Plus, fine particles in the atmosphere, tion, created perfect conditions for corro- consequently had WTTI conduct a series containing corrosive contaminants in the sion of the hopper’s steel components. of tests on A/SA516 Grade 60/70 steel of form of salts of ammonium and sulfate Before the EonCoat application could a uniform thickness of 0.375 in. The steel that retain moisture, may come to rest on begin, heavy deposits that had built up on pieces treated with HinderRUST S4.0 control equipment. Either of these condi- the hopper walls had to be mechanically passed all tests, including two transverse tions can lead to corrosion problems. chipped away, followed by abrasive blast- face bends, two transverse root bends, two Camfil said molecular filtration using ing, and then washing with potable water tensile strength tests, and both visual and adsorption technology is the industry-ac- to remove blasting debris from the metal radiographic inspections. cepted method to remove corrosive agents surface. According to SPI, the level of salt And, under its Master Builders brand, from the air. The company’s corrosion content in the area became highly appar- BASF offers MasterProtect 8020CI, a sur- control solution includes evaluation of a ent when the hopper’s steel began to flash- face-applied corrosion inhibitor that site’s environmental conditions; provid- rust minutes after the washing process. the company said is designed to migrate ing filtration solutions in accordance with EonCoat CR was applied to the lower through even the densest concrete struc- corrosive-gas concentration levels and the section of the steel hopper at a nominal tures and form a layer on the steel reinforc- operating conditions of the existing venti- thickness of 800 µm WFT in a single coat, ing bars. MasterProtect 8020CI also protects lation systems; and on-site performance applied over an eight-hour shift. The fol- other metals including carbon steel, galva- monitoring, in accordance with applicable lowing morning the entire area was pres- nized steel and aluminum. According to the standards such as ANSI/ISA -71.04-2013 sure-washed to allow the applicators to company, MasterProtect 8020CI will stop and IEC 60721-3-3. determine if the process had been success- the further corrosion of reinforcing metals Filter supplier AAF Flanders also fo- ful. EonCoat simply washes off if it doesn’t and extend the service life of the structure. cuses on the problem, noting that strict- fully react with the substrate, allowing the The principal benefits of MasterPro- er environmental guidelines have forced applicator to remedy any problems before tect 80201CI, according to BASF, include: many manufacturers to replace lead-based returning equipment to service, accord- • Reduces corrosion rate of corroding solders with lead-free solutions, which are ing to SPI. Over the whole area, only three steel not yet visible; more susceptible to corrosion of circuit small patches needed reapplication. • Provides protection in new structures boards and components from airborne SPI reported that, upon inspection, where insufficient cover is an issue; gaseous and particulate contaminants. passivation of the steel from formation of • Stops the formation of incipient an- These forms of corrosion can cause failure magnesium iron phosphate produced no odes at new to old concrete interface; by either impeding the flow of electricity or pinholes, voids or delaminations in the fin- • Does not interfere with bond of re- forming unintended circuit paths. ished EonCoat application. This, said the pair mortars or coatings — can be In response to these problems, the company, is due to the reaction between used directly on areas to be repaired; industry has developed a standard to the acid and base, creating a negative • Forms passive layer underneath rust classify control rooms and process con- charge within EonCoat CR that physically on steel — slows corrosion to allow trol environments. Most equipment pulls it into every surface imperfection. for longer term repair strategy to be manufacturers require that a control Approaching steel-corrosion prob- put in place; room environment meets the ISA G1— lems from a different direction, Fluoram- • Easy application; Mild classification to maintain a reliable ics, a supplier of engineered Polytetra- • Water-based; communication network in industrial fluoroethylene (PTFE)-based corrosion • Allows concrete to breathe and vapor environments. The only way to meet this solutions, announced it now offers a way to diffuse — is not a vapor barrier; requirement in many industrial environ- for metal fabricators and welders to pro- • Dual action inhibitor — protects both ments, according to AAF Flanders, is with tect steel from corrosion without impair- anodic and cathodic areas; and adequate gas-phase and particulate filtra- ing their ability to weld it. Fluoramics said • No cure time required. tion in control-room spaces.

36 www.coalage.com October 2018 operating ideas Exporting: An Important Revenue Stream for Energy Producers

by jim burrows

Coal companies across the United States risky. They are reluctant to enter new mar- the seller, and the financial hit can some- are benefiting from exporting. Selling kets or build sales in existing ones. Some times be significant. overseas is a great way to grow a business businesses are content with selling to just The good news is that there’s help avail- and boost the bottom line. In fact, U.S. one or two markets internationally or to a able. Many American companies are ex- coal exports have increased by 61% in few long-standing buyers. porting with fewer hurdles and more confi- 2017, as exports to Asia have more than It’s not a surprise that some energy dence by partnering with the Export-Import doubled. These export opportunities are producers are trepidatious. There are also Bank of the U.S. (EXIM). This independent encouraging as U.S. electric utilities con- hurdles associated with different govern- federal government agency can provide the tinue to close coal-fired power generators ments, languages, and legalities, in addi- financial support necessary to enable U.S. and shift toward natural gas. tion to unexpected risks such as war, po- businesses of all sizes to boost their inter- While exporting makes sense and is litical upheaval, currency conversion and national sales, even in emerging and fron- not a new concept to the coal industry, logistics. And, of course, the biggest deter- tier markets. EXIM also levels the playing there are still plenty of opportunities in rent to exploring export opportunities is field so U.S. companies can compete with untapped markets especially since 95% fear of nonpayment — the credit risk. foreign competitors — many of whom have of the world’s consumers live outside the Getting paid is the primary concern of similar backing by their home governments. United States. Despite the potential up- U.S. companies selling goods and services side, many companies still feel that ven- beyond our borders. If the foreign buyers Selling on Open Account turing overseas is too complicated or too don’t pay, there is very little recourse for EXIM’s export credit insurance is a popular product among U.S. exporters. The insurance policy protects foreign accounts receivable generated by the sale of goods and services from U.S.-based companies to international customers. The policy covers up to 95% of the sales invoice against nonpayment due to commercial (e.g., bankruptcy, protracted default) and political (e.g., war, insurgency) risks. A key advantage of this coverage is that it also improves competitiveness in the world market. While many American exporters resort to cash in advance to avoid nonpayment risk, most foreign competitors are able to offer open account credit terms, which are significantly more attractive to potential buyers. Buyers expect credit terms, and coal companies that are unable to extend credit may lose out on valuable opportunities. An EXIM export credit insurance policy empowers U.S. businesses to negotiate credit terms with foreign buyers up front, typically in 30, 60 or 90 days. This feature is a powerful marketing tool and can be the competitive edge that wins deals. EXIM can protect a coal company’s entire portfolio of customers or just a single buyer. In addition to reducing the risk of nonpayment and offering open account credit terms to foreign buyers, EXIM’s ex-

38 www.coalage.com October 2018 operating ideas continued

Thus, this insurance is designed to take lion of coking coal sales from Wilson The Export-Import Bank (EXIM), a U.S. federal the worry out of exporting so companies Creek Energy LLC to a buyer in Uru- government agency, enables U.S. companies can enter new markets and boost their guay. Meanwhile, Lehigh Anthracite to enter new markets with confidence and increase sales in existing ones. EXIM products sales with the backing of the U.S. govern- obtained insurance for a 60-day open equip businesses of all sizes with the necessary ment. The coal industry and many others account term on a sale of anthracite tools to compete and win sales in international have used EXIM insurance to a great ef- coal to a customer in Norway. markets. EXIM empowers American exporters to fect — here are a few examples: grow their business by extending open account Contura Energy is a private, Tennes- EXIM gave these coal exporters the credit terms while protecting against buyer see-based coal supplier with custom- peace of mind and the assurance to win nonpayment, providing access to working capital to improve cash flow, and offering financing ers across the globe. It supplies metal- new business. Contact the EXIM Bank at for buyers of capital equipment and services. lurgical coal to produce steel and ther- (202-565-3901) to learn more or email Ex- More than 90% of EXIM transactions support mal coal to generate power. In 2017, [email protected]. small businesses — no business and no deal Contura exported 8.2 million tons of are too small. Visit www.exim.gov. coal to 22 countries. In one of those James Burrows is EXIM’s senior vice presi- transactions, EXIM covered the politi- dent, Office of Small Business. He has more port credit insurance can enhance a com- cal and commercial risk of a $7 million than 30 years of professional experience in pany’s borrowing capacity. By assigning sale to a buyer in Egypt. both the public and private sectors of the these secured foreign accounts receivable financial services industry, including com- to a lender, the exporters improves its li- Two Pennsylvania coal companies mercial banking, retail banking and invest- quidity and eases cash flow constraints. have used EXIM’s short-term export ment banking. Burrows joined EXIM Bank credit insurance to support sales to a as the vice president of Small Business in Oc- EXIM Support for Coal Exports single foreign buyer because they tober 2012 and was promoted to the senior EXIM’s support is available to businesses wanted to extend open account credit vice president in 2013. Burrows has also held of all sizes, and small businesses com- terms while protecting against buyer management positions at both large and re- prise 91% of EXIM’s total authorizations. nonpayment. EXIM covered $17 mil- gional commercial banks in the U.S.

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October 2018 www.coalage.com 39 suppliers news Famur Set to Become Top 3 Global Player in 2023

A comprehensive offer with recurring revenue representing more than 25% of total revenue — Famur wants to be a supplier of comprehensive solutions for the mining and cargo handling sectors. During the next five years, the company plans to significantly increase its installed machinery base in Poland and foreign markets, and intends to steadily develop its aftermarket business while stabilizing the lease revenue. At the same time, it plans to expand its portfolio by offering high value-added services, such as predictive maintenance and diagnostic Mirosław Bendzera, president, Famur, explains the company’s new five-year strategy. reporting, to ensure that more than 25% of the group’s revenue is recurring revenue. Rapid international expansion, maintain- tions tailored to customer needs that offer Entering a new, rapidly growing market ing a leadership position in Poland, offer- value for money, optimizing manufactur- of solutions for the hard rock mining sector ing end-to-end solutions that exploit tech- ing and logistics processes to deliver qual- — The company intends to enter the rapid- nological innovation, and entering the ity products always on time, and providing ly growing hard rock mining business. This hard rock mining segment are the prin- professional 24/7 after-sales support and goal is to be achieved by acquiring a com- cipal goals defined in the Famur Group’s a complete range of added services,” said pany with revenue between PLN 100 mil- new growth strategy for 2019–2023. The Famur President Mirosław Bendzera. lion-200 million ($26 million-$52 million) Polish company is set to increase its rev- Maintaining leadership position in and driving its further organic growth. enue to PLN 2.5 billion to 2.7 billion ($660 Poland — Famur will seek to maintain its “Expansion into foreign markets is million to $713 million) by 2023, of which strong position at home as the supplier of one of our key engines of growth and more than 50% is to be export revenue. choice for customers in Poland. They can should make it possible to derive more Following the implementation of the new count on Famur to expand its range, step than half of our revenue from abroad in strategy, Famur wants to become the pre- up product innovation, and deploy a cus- 2023,” Bendzera said. “Clearly defined di- ferred global supplier of end-to-end, inno- tom-tailored training and maintenance rections of expansion and the right strat- vative solutions for the mining and cargo and support systems. Plans are also in place egy of growth or entry into each of the se- handling industries and a top three man- to commercialize new solutions that use lected markets, as well as development of ufacturer of machinery for the soft rock robotic, virtual reality, simulation and Big end-to-end solutions and a stable position mining sector. Data technologies, and to implement the in Poland will allow us to become one of The new growth strategy puts custom- Smart Mine concept at mines in Poland. top three global manufacturers of mining ers and their needs at the center of the com- Becoming a top three global supplier of equipment for the soft rock mining sec- pany’s activities, as reflected not only in its soft rock mining solutions — Famur plans to tor. We also want to build a third strong vision, but also in its mission statement, significantly increase its presence in inter- segment within the group, in the rapidly which emphasizes that Famur is built by national markets within the next five years, growing hard rock mining business.” people who share a commitment to sup- so that in 2023 more than 50% of its revenue One of the key areas supporting the porting customers in achieving their goals comes from exports. In the priority mar- implementation of Famur’s strategy is by providing effective solutions in confor- kets, where it has an established position smart technology, where the focus will be mity with the highest environmental stan- now, the company will strengthen its or- on development and commercialization dards. The cornerstone of the strategy are ganic growth through expanding the main- of technologically advanced solutions en- the values that will serve as a guide for day- tenance and support centers and increas- abling the transformation and further im- to-day operations of the entire organization. ing the availability of after-sales services. provement of efficiency and safety in the “In our strategy, a strong focus is In opportunistic markets, where Famur is mining sector while reducing operating placed on close cooperation with the cus- still building its position, it wants to grow expenses and adverse environmental im- tomer, which encompasses providing as- by forming strategic alliances with local pacts of mining operations. The company sistance in obtaining financing, designing partners or by acquiring businesses with a also wants to scale up through organic effective, reliable, safe, innovative solu- stable customer base and market share. growth, strategic partnerships and M&As,

40 www.coalage.com October 2018 suppliers news continued where the selected business model will be nance services. Sulzer’s extensive network of associated generators and pumps, motors, adapted to the nature of both the operat- service centers throughout North America transformers, valves, switchgears, and oth- ing segments and individual markets. will provide expert, local support from one er equipment that affects plant reliability of the world’s leading independent repair and performance. Using intelligent models Polydeck Celebrates 40th specialists of electromechanical equipment. based on predictive analytics, the solution On October 11, Polydeck Screen Corp. cel- Nidec Industrial Solutions has a long takes data from multiple sources, applies ebrated its 40th anniversary at the compa- and distinguished history of manufactur- domain and analytical expertise, and then ny’s Spartanburg, South Carolina, campus. ing medium-voltage drives for industrial seamlessly integrates into a customer’s It was a two-day celebration attended by applications. With the expertise to design existing Computerized Maintenance Man- employees, partners and affiliates. and manufacture custom-made drives for agement System (CMMS)/Enterprise Asset The anniversary merits both grati- individual applications, Nidec has a strong Management (EAM) environment to im- tude and praise, Peter Freissle, president, presence in the market. prove maintenance planning, reduce out- Polydeck, said in the opening speech. “The The new agreement will see Sulzer ages, and increase workforce efficiency. purpose of this event is to celebrate suc- provide both sales and technical support “APM for Power Plants is evidence of the cess and thank God,” he said. “Less than for MV drives. The company’s experienced benefits this strategic alliance brings to our 0.5% of companies make it to this point in field service teams offer expert support customers,” Laura Anderson, head of the their careers.” on site, while the local service centers are Siemens Power Generation Services Con- Company literature traces Polydeck’s equipped with modern repair facilities to trols and Digitalization business, said. “By history to 1959 when Freissle met Helmut ensure any downtime is minimized. At the combining Siemens’ and Bentley’s comple- Rosenbusch on the former’s second day same time, Sulzer’s customers will have di- mentary and proven areas of expertise, this in Johannesburg. Freissle said the meet- rect access to high-quality MV drives and innovative offering will help our customers ing was an answered prayer for a teenager excellent OEM support. manage costs, improve reliability, and in- who had arrived in South Africa broke and crease the performance and availability of had spent the previous night at a homeless Siemens, Bentley to Offer Integrated their thermal power infrastructure.” shelter. Rosenbusch was a third-genera- APM Solution for Power Plants APM service solutions are tailored to tion screen manufacturer with ambitions Siemens and Bentley Systems have an- each organization’s unique needs, based on of launching his own business. The two nounced a joint technology and service variable factors such as plant configuration, Germans clicked and shortly thereafter solution, consisting of their complementa- on-site resources, equipment expertise, and Screenex South Africa launched. ry offerings, to speed up the digitalization plant operations and maintenance strategy. Roughly 10 years later, the compa- of power plants and provide intelligent an- The scope of options ranges from on-prem- ny developed a prototype polyurethane alytics with a range of innovative offerings ises installation or cloud-based MindSphere screen panel. The technology gradually and managed services solutions. The new hosting, to turnkey setup of APM — com- gained acceptance and grew in popular- service, to be hosted on Siemens’ cloud- plete with Siemens asset models — to APM ity and demand. Polydeck Screen Corp. based open IoT operating system, Mind- as a service, with a fully integrated managed launched in 1978. Sphere, will combine Bentley’s advanced service solution setup and run remotely by The company has continued to grow asset performance software capabilities Siemens power plant experts. globally and opened facilities in Chile. That with Siemens’ complementary technology “We’re excited to be delivering, in this growth saw a more pronounced uptick in and service expertise to empower power case for power plant owners, operational the recent past. “More than 50% of you sit- plant owners to take full advantage of dig- advantages made uniquely possible by our ting in this room as employees have joined italization, which helps improve mainte- work with Siemens to leverage IoT and per- us in the last five years,” Freissle said. nance operations and planning. formance digital twins,” Greg Bentley, CEO, Throughout, the company remained Siemens’ asset performance manage- Bentley, said. “In effect, we are together ad- private and family-owned. “We have the ment (APM) solution, part of the compa- vancing APM toward asset performance shortest lead time in the industry and the ny’s Omnivise digital solutions portfolio, modeling — where our engineering tech- best quality in the industry, because of you covers the entire power plant, including the nologies (ET) compound the value of IT guys,” Freissle said. “We’re part of some- combustion and steam turbines as well as and operations technologies (OT).” thing really special. Every one of you made this possible for us and I thank you from the bottom of my heart.”

Sulzer Signs Deal With Nidec Industrial Solutions As part of a growing portfolio of services, Sulzer has signed an agreement with Nidec Industrial Solutions that will introduce customers to the high performance, energy-ef- APM for Power Plants combines Bentley’s advanced asset performance software capabilities ﬁcient drives with class-leading mainte- with Siemens’ industry and domain expertise.

October 2018 www.coalage.com 41 product news Low-capacity Reclaim Feeders for Any Mine

are deployed on drills and collect mea- surements at 1-cm increments in drilled blast holes. Once the rock information is processed on the platform, it is available for blast planning and export to browser, mobile device or API. www.datacloud.com

Conveyor Digital Twin for Comparisons Voith released BeltGenius ERIC, software that allows mine operators to assess conveyor efficiency, the company reported. The system receives relevant performance data from the conveyor, which then goes to a server at Voith. The server hosts a digital twin of the system. ERIC (Efficien- cy and Reliability Intelligent Control) determines a baseline value linked to the energy consumption and known as the Energy Performance Indicator. The indicator allows for comparisons that reveal how efficiently the conveyor is operating. The data are visualized on the client’s indi- vidualized user interface, in the form of an online dashboard. The software provides a FLSmidth announced the Buffalo range profitability, DataCloud reported. It can way to optimize capacity and reduce ener- of low-capacity modular reclaim feed- be installed in minutes and runs on Data- gy consumption, Voith reported. ers are suitable for mines of any size. The Cloud’s MinePortal platform. The sensors www.voith.com series offers “different discharge heights and loading decks of various lengths to suit the required application.” The feeders can be mounted on skids or wheels. The motor control center is on board and only the power supply needs to be isolated prior to relocation. It is powered by electromechanical and hydraulic drives. Flow control is achieved through adjustable hy- draulics, variable speed drives and gear- box ratios. The feeders can be transported in standardized containers. www.flsmidth.com

Rock Data for Blast Planning DataCloud showcased RHINO, a geo- sciences logging tool that uses sensors, seismic-while-drilling techniques, and artificial intelligence to measure rock properties in near real time. The solution enables miners to develop and optimize differential blasting plans that produce significantly improved fragmentation profiles, driving greater productivity and

42 www.coalage.com October 2018 product news continued

4G Electronic Initiation System life, contains no VOCs, phosphates, APEs, Online Class for Lubrication Dyno Nobel launched the DigiShot Plus carcinogens, mutagens or other harmful Solution Sales 4G electronic initiation system, which is compounds. Momar delivers Resinator on- Luber-finer added Module 6 to its free on- designed to reduce blasting delays and in- site, and supplies or recommends certified, line education web program for distributers, troduce programming speeds seven times trained drivers to complete the application. sales associates and others. The company faster than existing systems. The system www.momar.com described it as a comprehensive training features a fast and simple deployment tool that educates users on outside filtration method, an automatic check to ensure the Synthetic Grease Reduces Torque, sales and the role salespersons play in help- correct number of detonators per channel, Nixes Costs ing fleet maintenance managers. energy monitoring right up to the point ExxoMobil launched Mobil SHC Polyrex www.luber-finer.com of blasting, and automatic detection and 102 EM synthetic grease, which, the com- testing of detonators, the company report- pany reported, is proven to increase the ed. Top benefits of DigiShot Plus 4G in- mechanical efficiency of electric motors. clude improved blasting efficiency, lower During proprietary-bearing energy-ef- vibration levels, improved excavation pro- ficiency rig tests that collected 2 million files and wall stability, as well as increased data points, the grease reduced torque by loader productivity and enhanced safety. up to 40% compared with a mineral-based www.dynonobel.com alternative, which results in an increased motor efficiency of up to 0.24%, the com- Remote-control Unit Reads pany reported. That can both lower energy Clamping Strips for Trefoil Clamping Inaccessible Meters costs and reduce the carbon footprint, the Beele Engineering announced new clamp- Rhosonics released the RCU Remote-Con- company reported. The grease is suitable ing strips that secure three high-tension trol Unit for measuring instruments lo- for use in electric motors of any size and cables in a trefoil clamp, dubbed the cated in inaccessible places. It enables the viable at up to 180°C. It is suited for fill-for- RockRoller. The strips, made of Beele’s user to get the data from, or adjust the set- life applications, the company said. NOFIRNO rubber, help bundle high-volt- tings on, a meter that is either hard to reach www.mobil.com age wires that will cross significant dis- or in a dangerous location using a hand- held device or PC/PLC. The unit connects to the measuring instrument by cable and monitors measurement results and change settings in near real time. The unit doubles Wounded Warrior Project helps veterans as a communication protocol converter, turn devastation into motivation. for example, changing a HART to a Modbus RTU signal, Rhosonics reported. The unit is available in three different versions. www.rhosonics.nl

WOUNDED WARRIOR MARK LALLI

Non-toxic Road/Soil Enhancer Momar Inc. introduced Resinator, a road and soil enhancer designed for use on unpaved roads in sensitive habitats. Ap- proved by the Penn State Center for Dirt SUPPORT WOUNDED VETERANS AT iamlivingproofwwp.org and Gravel Road Studies, Resinator reduces airborne dust by more than 90%, the company reported. With a toxicity proﬁle simi- ©2018 Wounded Warrior Project, Inc. All Rights Reserved. lar to baking soda, it is non-toxic to aquatic

October 2018 www.coalage.com 43 product news continued

tances through drill holes or pipes, the the cable, clamping strip and clamp, the company reported. company reported. The RockRoller is a metal clamp con- www.beele.eu sisting of three sections that are triangu- lar and wheeled. Beele’s rubber clamping Gas Detector Released to NA Markets strips, the hardness of which is matched Dräger released the X-am 8000 multigas to the application, secure the cables so they are not damaged. The NOFIRNO detector to the U.S. and Canada markets. during pulling. The strips are placed in the material is equipped with a special pro- It can simultaneously detect up to seven clamp parts and push the cables together ﬁle that creates an optimum grip between gases, including ﬂammable gases, vapors and oxygen. The company described it as smaller, lighter, easy-to-read, rugged, intuitive and capable of being converted to an area-monitoring device. It can be switched between pump and diffusion mode to save energy. www.draeger.com

Stockpile Management Kespry’s new enterprise-grade inventory management monitors, reconciles, and manages inventory data across sites, product lines and divisions. Users can reconcile data from their drone surveys with data from ERP and other systems of record for production and sales data. The data can be used to make better production decisions, inform sales teams of available product, and reduce write-downs by finance teams. “Physical inventory accuracy is a defining element of profitability for our 200+ mining and aggregates customers, and we’re excited to make the process of delivering accurate data much sim- pler,” said George Mathew, chairman and CEO, Kespry. “Our unique combination of drone-based topographic surveys, cloud-based analytics, and inventory management capabilities provide a single source of truth for every site, product line and organization.” Mining companies have been adopt- ing high-accuracy inventory measurement from drone solutions to improve profitability and reduce write-downs from end-of-period financial reporting. However, many production managers or accounting teams have been forced to at- tempt to reconcile aging and inaccurate ERP data with up-to-date accurate drone data. This is typically done with complex spreadsheets and manual adjustments. With this system, Kespry says miners can save time wasted on manual Excel work and identify discrepancies in inventory data faster to avoid costly issues such as overproduction. www.kespry.com/inventory-management

44 www.coalage.com October 2018

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Germany, Austria & Switzerland Gerd D. Strasmann Tel: +49 2191 931497 Fax: +49 2191 931499 [email protected]

Scandinavia, U.K. & European Colm Barry Tel: +46 (0) 40 414178 Fax: +46 (0) 40 414178 [email protected]

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46 www.coalage.com October 2018 ADVERTISING INDEX

...... PAGE ...... PAGE China Coal & Mining Expo 2019 (Together Expo)...... 9 MetCoke 2018 (Smithers Apex)...... 12

Coal Age Website ...... 45 Mining Media Int’l - Mining Magazines ...... 37

Columbia Steel Casting Co Inc...... BC Mining Media Int’l - Social Media...... 44

Derrick Corp...... 10 Preptech Inc...... 14

Elgin Separation Solutions ...... IFC Sandvik Mining ...... 11

Haulage & Loading 2019...... 15 Schurco Slurry...... 39

Hilliard Corp ...... 3 Strata Worldwide...... 33

Jennmar Corp...... IBC U.S. Tsubaki Power Transmission LLC...... 13

Longwall USA 2019 ...... 16-17 World Mining Equipment (WME) ...... 47

Matrix ...... 39 Wounded Warrior Project Inc...... 43

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

October 2018 www.coalage.com 47 legally speaking

Accident Investigation? What Could Go Wrong?

by avi meyerstein

You may have some If the case is more serious than you Witnesses need preparation. Before work to do to pre- thought, this conversation will bring in they go “on the record” with the govern- pare for your next the right outside resources to guide ev- ment, traumatized co-workers need to accident. How you erything in the right direction. sort through feelings of guilt and sep- handle the minutes, What’s a serious case? Did someone arate fact from speculation. They need hours, and days fol- die or suffer serious injuries? Was there to know what to expect from a govern- lowing an accident significant media coverage? Did it shut ment interview. Before the government can determine what down a critical part of your operations? contacts them (possibly at home), they kind of mess you may be dealing with — Are you worried someone may have need to know their interview rights. or not — for years to come. made a false statement, falsified a doc- They need to understand the impor- Worst case scenario? A serious acci- ument, or tampered with the accident tance of telling the truth. dent harms people and spins off a world scene? If yes, get legal help. What’s in those files? Another early of pain. The government can cite you, Stay two steps ahead. The best way pitfall is documents. Control the flow of issue penalties, and order you to change to steer the investigation in the right di- requests and production by establish- your operations. Government and pri- rection is to be ahead of the curve. Be the ing a single point-of-contact. Insist on vate lawsuits can take years and cost first to gather and review relevant docu- requests in writing. Make required re- millions. A false statement or document ments and evidence, without disturbing cords available immediately, but review can send someone to jail. You can face the scene or violating a state or federal other requested documents before pro- disruptions to your business, customer 103(k) order. Be the first to speak to the ducing. Try to reduce the burden and re- relationships, employee morale, com- important witnesses if you can. Get any spond quicker by negotiating narrower munity relations and public image. It’s expert(s) up and running quickly. requests (e.g., reduce time periods, sub- all on the line. The goal is to minimize surprises jects or people). Protect privileged, con- Can you limit these risks? Absolute- and ensure government investigators fidential and trade secret documents. ly. Focus on getting ahead of the curve. do not jump to the wrong conclusions. When looking at documents, as- Engage experienced counsel early, All too often, they are under pressure sess their risks. What do they say? Do at least to triage and strategize. I know to find answers quickly. Unfortunately, they suggest you didn’t sufficiently it sounds self-serving, but, speaking they often obtain information you don’t train the accident victim? Do they in- with the right lawyer — even briefly — at need (e.g., asking witnesses to specu- dicate failures to maintain, tag out or the beginning is often the less expensive late) and fail to obtain information you repair equipment involved in the ac- path. If you need counsel and wait too do need (e.g., not asking people about cident? Are the documents authentic? long, your legal team will be working preventive measures taken). You can Did someone know of and ignore a overtime from day one. frequently head off these problems with hazard or violation? Did someone “fill There are many incidents where a head start. in” missing records with new forms? your team can investigate successfully Staying two steps ahead is difficult Know these things before handing over in-house if they’ve had the right train- at times, impossible at others. But, you the documents. ing and experience. Even then, it’s wise have some advantages. It’s your mine. Prepare and train. Like everything to confirm that approach is appropriate You’re the first to know about the in- else, correctly handling MSHA investi- in each case and plot a strategy upfront. cident. Don’t sit around and wait for gations requires preparation and train- Speaking with a lawyer experienced someone else to start asking questions. ing. Preparing means having emergency in Mine Safety and Health Administra- Prepare for employee interviews. response policies that cover what you’re tion (MSHA) investigations can save Interviews are critical to an investigation, required to do by law (such as MSHA’s you tons of time, pain and money later. but they also pose risks. Intentionally or 15-minute reporting rule) and what you At the bare minimum, that conversation not, someone may provide inaccurate should do for your own good. should: triage the case, set up your inter- information that confuses the case. In Train your management team on nal investigation as privileged and “at- a tight-knit mining community, miners what to expect. The early hours after an torney-directed” (even if your in-house feel guilty and personally responsible for accident are critical. How you handle team will do most of the legwork), discuss each other’s safety. Many assume they them will make all the difference. litigation holds (evidence preservation), could have prevented the accident. A provide you with key resources (check- vulnerable miner may provide false or Avi Meyerstein is a partner with Husch lists, forms, and a refresher on what to misleading information that can confuse Blackwell. He can be reached at Avi.Meyer- expect), and discuss an initial strategy. the search for truth and create liability. [email protected].

48 www.coalage.com October 2018 MAKING SURE THE GROUND ABOVE STAYS UNDER CONTROL

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