Electric Utility Fuel Procurement What Future Role Will Coal Play?

MAY 2012 VOL. 117 NO. 5

FEATURE ARTICLES NEWS/4 ROOF BOLTING/26

26 Roof Bolting Technology Improvements in machine design and consumables make a tough job a little safer

34 Electric Utility Fuel Procurement What future role will coal play?

40 Finding a Perfect Balance Powder River Basin mine balances nature preservation with energy development

44 The Benefits of Slurry Pump System Optimization Improved energy efficiency and reliability enhance GPS GUIDANCE/40 OPERATING IDEAS/52 the bottom line

48 Coaltrans Miami Examines Exports Activity Shifting energy markets force more coal off-shore, but can the industry adjust fast enough?

52 Lubrication Plans Pay Dividends

COAL IN THE NEWS

4 Anti-coal rally draws little attention in Portland 4 Markey calls for a review of coal leases in light of the export market 4 Ohio utility ordered to keep three coal-fired power plants online 5 CONSOL Energy restarts idled longwalls in May THIS ISSUE 6 Arch Coal renames Tygart Valley mine in honor of Steve Leer 6 Oxford files lawsuit against Big Rivers Electric

8 Craft remains optimistic This month, Coal Age offers a market perspective through 10 Foresight Energy seeks to raise more money through an IPO the eyes of a utility coal buyer. Other feature articles include 12 Illinois may soon decide on FutureGen 2.0 tips on pumping, roof bolting, and drilling. On the cover, 16 Ingram to acquire U.S. Barge Line an Atlas Copco Pit Viper drills blastholes in coal at Western 18 Clean coal campaign teams with NASCAR Fuels’ Dry Fork mine (Photo courtesy of Atlas Copco). 20 Federal judge issues injunction against Peabody subsidiary, supports UMWA organizing win DEPARTMENTS 22 2011 coal company CEO compensation 2 Editorial WORLD NEWS 4 Coal in the News

5 TransAlta abandons Canada’s largest carbon capture project 5 World News 12 Rio Tinto exporting coal from Mozambique in May People 14 Dateline Washington 6 Teck sees record coal revenue 16 Calendar Vele’s first coal destined for export market 18 Awards 8 China presses coal mining industry to improve safety 20 Letters to the Editor Dalrymple Bay: Coal ready for export 52 Operating Ideas Chinalco to acquire Mongolia’s South Gobi mine 54 Suppliers News 10 Colombian coal exports remain high 56 Product News BHP offers metallurgical coal update for Australia 61 Classified SAIL to import coking coal 64 Legally Speaking

May 2012 www.coalage.com 1 editor’s note Utilities Abandon Carbon Capture www.mining-media.com

hose that attended the Keynote session at Coal Prep 2012 Mining Media International Editorial Office learned firsthand of the headwinds the U.S. coal industry T 11555 Central Parkway, Suite 401 now faces. A fuel procurement manager from America’s largest Jacksonville, Florida 32224 U.S.A. coal-burning utility painted a rather grim picture for U.S. coal Phone: +1.904.721.2925 consumption (See Fuel Procurement, p. 34). It was something Fax: +1.904.721.2930 everyone in the room suspected, but until now no one from the Editor-In-Chief—Steve Fiscor, [email protected] utility side had said it publicly. Natural gas had taken a substan- Western Field Editor—Russ Carter, [email protected] tial market share from coal and proposed regulations from the European Editor—Simon Walker, [email protected] BY STEVE FISCOR Environmental Protection Agency (EPA) will force utilities to / EDITOR-IN-CHIEF close more coal-fired plants sooner than anticipated. Latin American Editor—Oscar Martinez, [email protected] In her introductory remarks, Kim Chilcote from American Electric Power (AEP) Associate Editor—Gina Tverdak-Slattery, [email protected] told the audience that the message she was about to deliver would not be pleasant. Associate Editor & Photographer— She said she was a coal person at heart and that made it difficult for her as well. She Lee Buchsbaum, [email protected] described how an unusually warm winter and low gas prices this year would segue Graphic Designer—Austin St. Clair, [email protected] into a diminished coal burn for years to come. Afterward she fielded questions and listened sympathetically to angry remarks. The hostility was not aimed at her, but Mining Media International toward the Obama administration and the EPA. Corporate Office During the Q&A session, someone asked about carbon capture and sequestra- 8751 East Hampden, Suite B1 Denver, Colorado 80231 U.S.A. tion (CCS). She reminded the audience that for several years AEP operated a CCS Phone: +1.303.283.0640 pilot plant at its Mountaineer facility in West Virginia. What the company learned Fax: +1.303.283.0641 was that the costs to build and operate the system were extremely high and so were President/Publisher—Peter Johnson, [email protected] the parasitic losses. AEP funded the research and then pulled the plug on the project. An academic came unglued at the notion that utilities would simply walk away Vice President of Sales & Marketing—John Bold, [email protected] from CCS. He believed it was the linchpin to continued coal use and that rate pay- U.S. & Canada Sales Manager—Victor Matteucci, [email protected] ers would simply have to bear the cost. Scandinavia, UK and European Sales Manager—Colm Barry, [email protected] In World News this month, Coal Age also reports that another utility, based near German Sales Manager—Gerd Strasmann, [email protected] Edmonton, Canada, home of the Oilers, was throwing in the towel on its carbon Classified Advertising—Norm Rose, [email protected] capture project (See TransAlta Abandons, p. 5). Instead of sequestering or pump- Show Manager—Tanna Holzer, [email protected] ing the CO2 into a deep saline formation, Project Pioneer would use it for enhanced Ad Traffic Manager—Erica Freeman, [email protected] oil recovery (EOR). The drillers would pump CO2 into oil reservoirs to push out the remaining oil that did not flow freely from the formation. The study, however, proved that the efforts would not be feasible. If EOR is not practical in the middle of the Canadian oilfields, it’s a safe assumption that pumping CO2 hundreds of miles in the U.S. for the same purpose would not be feasible. The Worldwatch Institute, an advocacy group that support global sustainability, recently reported that there are 75 large-scale, fully integrated CCS projects in 17 Coal Age, Volume 117, Issue 5, (ISSN 1040-7820) is published monthly by Mining countries at various stages of development, but only eight are operational—a figure Media Inc., 10 Sedgwick Drive, Englewood, Colorado 80113 (mining-media.com). that has not changed since 2009. Currently, the storage capacity of all active and Periodicals postage paid at Englewood, CO, and additional mailing offices. Canada Post Publications Mail Agreement No. 40845540. Canada return address: Station A, PO planned large-scale CCS projects is equivalent to only about 0.5% of the emissions Box 54, Windsor ON N9A 6J5, Email: [email protected]. Current and back issues and additional resources, including subscription request forms and an editorial from energy production in 2010. In March, the EPA proposed regulations on CO2 calendar, are available online at www.coalage.com. emissions from power plants, essentially saying that power generators would be SUBSCRIPTION RATES: Free and controlled circulation to qualified subscribers. unable to build coal-fired power plants without CCS technology. Scaling up CCS Non-qualified persons may subscribe at the following rates: USA and Canada, 1 year, projects to the point that they could make a serious dent in emissions reduction $56.00, 2 year, $96.00, 3 year, $162.00, Student, $16.00, Outside the USA and Canada, 1 year, $77.00, 2 year, $137.00, 3 year, $225.00 surface mail (1 year, will require a massive investment. Who is going to foot the bill? $145.00, 2 year, $257.00 airmail delivery). For subscriber services or to order single copies, write to Coal Age, 8751 East Hampden, Suite B1, Denver, CO 80231 USA; call +1.303.283.0640 (USA) or visit www.mining-media.com. ARCHIVES AND MICROFORM: This magazine is available for research and retrieval of selected archived articles from leading electronic databases and online search services, including Factiva, LexisNexis, and Proquest. For microform availability, contact ProQuest at 800-521- 0600 or +1.734.761.4700, or search the Serials in Microform listings at www.proquest.com.

POSTMASTER: Send address changes to Coal Age, P.O. Box 1337, Skokie, IL 60076 USA. REPRINTS: Mining Media Inc, 8751 East Hampden, Suite B1, Denver, CO 80231 USA Steve Fiscor, Coal Age Editor-In-Chief phone: +1.303.283.0640, fax: +1.303.283.0641, www.mining-media.com [email protected] PHOTOCOPIES: Authorization to photocopy articles for internal corporate, personal, or instructional use may be obtained from the Copyright Clearance Center (CCC) at +1.978.750.8400. Obtain further information at www.copyright.com.

news Anti-coal Rally Draws Little Attention in Portland

Millennium Bulk Terminals, a Columbia River port in Longview, Wash., has applied for permits to make it one of the largest coal exporters in North America. “I’m not sure a rally in Portland for a few hours will overshadow the commitment we’ve made to creating jobs here in Longview,” said Millennium Bulk Terminals-Longview President Ken Miller. “Millennium is making a significant investment in our community and we are proud of our plan to create hundreds of jobs in Cowlitz County.”

Markey Calls for a Review of Coal Leases in Light of the Export Market Environmental lawyer Robert F. Kennedy Jr. makes anti-coal remarks during a rally May 7, 2012, in Portland, Ore. (Photo: Rick Bowmer/AP) With more emphasis being placed upon coal exports off the West Coast, it was only a matter of time before Washington realized it Leading an environmental rally against proposed coal ports in the might be leaving a scrap of money on the table. Or perhaps this is Northwest, environmental lawyer Robert F. Kennedy Jr. said a just one more way for anti-coal Democrats to find additional ways proposal to open new ports in the region will lead to political cor- to bankrupt the industry. Either way, on April 24, Rep. Ed Markey ruption and environmental damage, while the actual number of (D-Mass.), the Ranking Democrat on the House Natural jobs it will create is minimal, according to the Associated Press. Resources Committee, asked the Government Accountability Several proposed plans would bring coal mined in Western states Office (GAO) to conduct its first review of the government’s coal to ports in Oregon and Washington for export to Asian markets. leasing program since 1994. Since 1990 coal production from fed- Environmentalists say the dust emitted from trains hauling coal eral leases—almost all of which are on Bureau of Land would pollute the proposed routes, while opening the door to further Management (BLM) property, has increased 78%, peaking in environmental damage from its use in Asia. Protesters are saying 2004. Also, the number of active coal leases managed by BLM has similar things in other coal exporting regions, such as Australia. tripled since 1990 to more than 300. Overall, the BLM is in charge “Anybody who touches coal gets poisoned by it,” said of coal leasing on 570 million acres of land and is supposed to Kennedy, president, Waterkeeper Alliance. “You don’t just get award leases only if an offer meets “fair market value,” Markey sick. It poisons democracy, it poisons communities, it poisons explained in his letter. values. Coal is crime. Do not let it come through this community.” Markey’s four page letter references the central role of exports Others believe the coal shipments would create much-needed in earnings reports and financial projections from several U.S. jobs at the ports in a state where unemployment has hovered near coal producers including industry leader Peabody Energy which double digits since the global financial crisis began in 2008-2009. recently stated that coal export capacity could double within 10

± BREAKING NEWS

Ohio Utility Ordered to Keep Three Coal-fired Power Plants Online At the instruction of electric grid manager PJM Interconnections, on May east Ohio, Durbin said. PJM wanted the three Ohio plants to stay online 2, 2012, Ohio utility FirstEnergy Corp. stated it will delay the September as a backup to ensure enough power generation during the upgrades. closings of three coal-burning plants in northeast Ohio for three years so The company provided a copy PJM's analysis of reliability effects as the company can upgrade some transmission lines. According to the an exhibit in an April 30 filing with the Public Service Commission of Associated Press, the three coal plants that will now remain open until West Virginia. 2015 are in Cleveland, Eastlake and Ashtabula. They will only operate “Deactivation of these generating units will adversely affect the when demand increases, and Akron-based FirstEnergy still plans to close reliability of the PJM transmission absent upgrades to the transmis- the coal units once the transmission lines, mostly in northern Ohio, are sion system,” PJM wrote in its analysis, adding a long list of anticipat- improved, company spokesman Mark Durbin said. ed line overloads and voltage violations. Although PJM did not identify PJM Interconnections, which oversees the power grid in Ohio and a the needed transmission upgrades that are underway, FirstEnergy said dozen other East Coast states, reviewed plans for closing the in the filing, “The necessary upgrades will be made by FirstEnergy sub- FirstEnergy plants and told the company it needed to upgrade its sidiary Potomac Edison at an estimated cost of approximately transmission lines before shuttering the coal-burning units in north- $75,000…and are expected to be completed prior to June 1, 2013.”

4 www.coalage.com May 2012 news continued

TOP 10 COAL-PRODUCING STATES WORLD NEWS ¸ ˛ ˝ ¸ (in Thousand Short Tons) TransAlta Abandons Canada’s Largest Carbon Capture Project Week Ending (4/28/12) TransAlta Corp., Canada’s largest publicly-traded electricity gener- YTD ‘12 YTD ‘11 % Change ator, announced it and several partners have decided to abandon Wyoming 127,308 142,053 -10.4 the nation’s largest carbon capture and sequestration project. West Virginia 43,220 46,359 -6.8 Project Pioneer was a joint effort by TransAlta, Capital Power, Kentucky 34,317 36,188 -5.2 Enbridge Inc., Canada’s largest oil pipeline company, and the fed- Pennsylvania 18,786 19,971 -5.9 eral and provincial governments to demonstrate the commercial- Texas 13,699 14,269 -4.0 scale viability of CCS technology. Indiana 11,608 12,331 -5.9 The first step and an essential part of the project was to prove Illinois 11,390 11,653 -2.3 Montana 11,175 12,330 -9.4 the technical and economic feasibility of CCS through a front end Colorado 10,010 8,589 16.5 engineering and design (FEED) study before making any major cap- North Dakota 9,355 9,537 -1.9 ital commitments. Following the conclusion of the FEED study, the industry partners determined that although the technology works U.S. Total 329,165 356,913 -7.8 and capital costs are in-line with expectations, the revenue from carbon sales and the price of emissions reductions are insufficient years. “Coal exports are rising as U.S. electricity producers move to allow the project to proceed at this time. away from coal in favor of natural gas and renewable energy,” “The markets for CO2 sales and the price of emission reductions Markey wrote in a letter to Comptroller General Gene Dodaro. are not sufficient at this time to allow the project to go ahead,” said “With such rapid market changes taking place, American taxpay- Dawn Farrell, TransAlta, president and CEO. “While we are disap- ers must be assured they are receiving the full value for energy pointed that Project Pioneer will not go ahead, we now know the tech- resources held in the public trust, especially when mining compa- nology works and we still believe there is a future for CCS.” nies are seeking to export hundreds of millions of tons of coal for Pioneer would have been able to trap as much as 1 million tons premium prices.” of CO2 a year from the Keephills No. 3 coal-fired power plant west Markey asked the GAO to examine how the BLM has conduct- of Edmonton, and then sell the gas to energy companies to use in ed its coal sales over the last two decades; the process used to enhanced oil recovery applications. Construction was due to start estimate “fair market value” determining the price of those sales; this year. whether the agency’s estimate of fair market value accounts for lower reserve estimates and increased exporting to higher priced Coal Prices Expected to Fall Further markets; and if BLM adequately tracks and makes publically Japanese coal companies recently settled their 2012 benchmark available information pertaining to sales and lease payments. prices at US$115/metric ton (mt), a fall of 11% on the 2011 price “We lack information about how the rapid growth of coal mining of US$129.85/mt. According to The Herald, ‘spot,’ or one-off, sales on federal land combined with shrinking reserves and increasing of Hunter coal have struggled to make US$105/mt and analysts exports produced from federal leases affect the value of U.S. coal,” expect the falls to continue. The latest edition of the Australian Markey writes. “The House Natural Resources Committee has an Coal Report said thermal coal from South Africa’s Richards Bay ter- interest in ensuring that BLM’s leasing process promotes competition minal was about to dip below US$100. A leading indicator of Hunter for coal tracts and that the ‘fair market value’ established by BLM is coal prices, the Global Coal Newcastle index, was at US$102.95. So accurate. Having GAO undertake this review of the federal coal leas- far this year, Japanese customers have bought 55% of the coal ing program will give us the information we need to better under- shipped from Newcastle; China 15% and South Korea 10%. stand how the program is working and what implications rising coal exports and declining domestic demand might have for its future.” Rio Tinto Starts Exporting Coal from Mozambique in May Eric Finlayson, managing director, Rio Tinto Coal Mozambique, said CONSOL Energy Restarts Idled Longwalls in May the first lots of coal mined by Anglo Australian group Rio Tinto in CONSOL Energy announced it will re-start the longwall at its Tete, Mozambique, are due to be exported to the Asian market, Blacksville mine May 1. “The company has largely concluded specifically India in mid-May 2012. According to Macau Hub, negotiations with thermal coal customers concerning deferred Finlayson said the trains and coal trucks acquired by the company shipments, enabling us to resume our thermal guidance for the to carry the coal mined in Moatize to the Port of Beira along the second quarter and beyond,” said Brett Harvey, chairman and Sena Railroad had been tested and approved by state rail and port CEO, CONSOL Energy. “A similar situation exists in the coking manager Portos e Caminhos de Ferro de Moçambique. Finlayson coal markets, where overseas steelmakers have been taking also noted the importance of finishing building work at the provi- advantage of a lull in the strong longer term market to pressure sional coal terminal at the rail and port complex in Beira, as export coal producers into accepting prices lower than the benchmark.” capacity is currently limited by development of facilities to trans- CONSOL idled its longwall at Buchanan, March 9, in an effort to port the product. He added Rio Tinto is setting itself up in refrain from selling its premium hard coking coal at a discount. As a Mozambique to become the largest exporter of coal from the Moatize result of extensive negotiations, CONSOL has now come to terms basin, a region that has large coal reserves. with its customers and, as a result, will re-start the longwall at Buchanan May 1. Continued on pg 6...

May 2012 www.coalage.com 5 news continued

Continued from pg 5... Arch Coal Renames Tygart Valley Mine in Honor of Steve Leer Indonesia to Impose Export Tax on Coal Arch Coal, Inc. recently announced that Arch’s Tygart Valley No. 1 Indonesia will tax coal exports. According to The Jakarta Post, the mine will be renamed the Leer mine in recognition of the leader- Trade Ministry’s Director General of Foreign Trade Deddy Saleh, ship of Steven F. Leer, who was elected executive chairman of said, “We have come to the conclusion that coal has to be subject- Arch’s board after two decades with the company as chief execu- ed to export tax. We need to apply export tax on coal to prevent over tive officer. exploitation, to maintain our coal reserve, to protect our environ- “We wanted to honor Steve for two decades of exceptional ser- ment, and to increase state earnings.” Indonesia had earlier said it vice and leadership,” said Arch’s Lead Director James R. Boyd. “It is would apply export taxes to other minerals, creating uncertainty in fitting to name this brand-new, world-class mining complex in hon- the country’s large mining sector, but until now it was unclear or of Steve and his vision of safety excellence, environmental stew- whether coal would be included. ardship and strategic growth. We view the Leer mine as one of Arch’s most exciting new growth projects and an integral part of our Xstrata Coal to Sell Interests in Nova Scotia company’s future.” Xstrata Coal is seeking an operating coal company to assume its The new Leer mine is a metallurgical coal mine currently under interest in the Donkin coal project in Canada. Xstrata Coal holds a development in Taylor County, W.Va. With the startup of the long- 75% interest and Erdene Resource Development holds a 25% inter- wall in mid-2013, the Leer mine is expected to produce 3.5 million est in the Donkin coal project joint venture, a proposed multi-con- tons of premium metallurgical coal annually, for sale to overseas tinuous miner underground operation at the site of the existing and domestic steel producers. The Leer mine will employ more than Donkin mine located in Cape Breton, Nova Scotia. 300 employees. “Over the past decade, Xstrata Coal has evolved, as has our “I’m honored to have my name forever associated with this new business strategy, and core to that is a focus on larger volume operation, which I believe is destined to become one of the world’s mining complexes,” said Peter Freyberg, CEO, Xstrata Coal. “We premier coal mines,” said Leer. “It has been a great privilege to be believe the Donkin coal project is a valuable asset to a qualified associated with Arch for 20 years and counting, and I am more partner and remain positive about its viability. We will continue to enthusiastic than ever about the company’s exciting future work closely with Erdene and the Province of Nova Scotia to secure prospects.” an operating partner to advance the project to production.” It’s estimated the Donkin mine could produce 2.75 million met- Oxford Files Lawsuit Against Big Rivers Electric ric tons per year of steam coal. In a late April lawsuit, Oxford Mining Co., a subsidiary of Ohio- based Oxford Resource Partners, hit back at major coal customer Teck Sees Record Coal Revenue Big Rivers Electric Corp. for terminating a coal supply agreement In its first quarter earnings report, Teck Resources said gross profit (CSA) that was to have run through 2015. for its coal segment $168 million over last year due primarily to Oxford said Big Rivers’ February decision, which the Henderson, higher selling prices, increased sales volumes, and lower unit cost Ky., generation and transmission co-op blamed on Oxford’s alleged of product sold. Production for the first quarter increased by 43% failure to meet coal specifications contained in their contract, could compared with the same quarter of 2011. “This significant increase result in as much as $20 million in damages. It already has caused is due partly to our expanded production capacity and partly to Oxford to idle the Briar Hill surface mine and reduce operations at unusual weather-related events and the strike at our Elkview mine the Rose France surface mine, both in western Kentucky’s in the first quarter of 2011,” said Don Lindsay, president and CEO, Muhlenberg County. Teck Resources. “We continue to execute our growth strategy, with Oxford went public in the U.S. in 2010 and acquired several approximately $65 million of investments in expansion capital existing mines and high-sulfur coal reserves in the region from made during the quarter, including investments in the Quintette Phoenix Coal Co. They included both Briar Hill and Rose France. re-opening project, expansion of the maintenance shop at the Earlier this year, Oxford applied for a Section 404 Clean Water Act Fording River mine to accommodate new larger capacity haul permit from the U.S. Army Corps of Engineers for an expansion at trucks, and the expansion of the processing plant at the Elkview Rose France. mine, which has now been commissioned. The volume of material In its breach of contract complaint filed in Ohio County Circuit moved in the first quarter exceeded our previous best first quarter Court in Hartford, Ky., Oxford said that in 2010 it sought to ensure by more than 15%. Unless we are required to restrict production through 2015 “a secured long-term market for a significant portion because of customer demand, we expect to produce 24.5 to 25.5 of its coal production at pricing it could count on, thereby produc- million [metric] tons in 2012.” The average coal price of $223/mt in ing a stream of revenue it could rely on to fund its continued opera- the first quarter was up 8% over last year. tions and meet its other working capital needs.” Following an extended bidding and negotiation process, Big Vele’s First Coal Destined for Export Market Rivers on July 1, 2010, entered into an amended CSA with Oxford, Coal of Africa Ltd. announced the first shipment from the compa- which revised and restated an existing coal supply deal between the ny’s Vele Colliery in Limpopo Province was loaded into 30 rail wag- two parties, Oxford said. Among other provisions, the amended ons at the existing Musina siding April 24, 2012. This first Ôtest’ CSA provided Oxford “with a guaranteed supply arrangement with fixed and known pricing through 2015.” The accord called for Continued on pg 8... Oxford to supply “various tonnages of coal in 2010 and 2011, and a

6 www.coalage.com May 2012 news continued

minimum of 800,000 tons of coal in 2012 and each calendar year Continued from pg 6... through and including 2015.” shipment train of approximately 1,500 metric tons of thermal coal Throughout 2010 and 2011, Big Rivers benefited from the low is destined for the Matola Terminal in Maputo, Mozambique, from prices, relative to market, provided by the amended CSA, Oxford where it will be shipped and sold to Asian markets. said. However, the market price of coal has fallen since late 2011 while the agreed-upon pricing under the amended CSA “substan- Shenhua Production Reaches Record High tially increased at the outset of 2013, with the result that the 2012 Shenhua Shendong Coal Group Corp. announced its commercial pricing was above the market price of coal.” coal production touched a record high of 54.84 million metric tons Also starting in 2012, Big Rivers was required under provisions of (mt) in the first quarter, up 2.41 million mt compared to the same the amended CSA to begin reimbursing Oxford mining operations period of last year. The production in March alone also broke a new cost increases for diesel fuel, equipment and explosives. record of 18.85 million mt. This is when Big Rivers started to complain about Oxford delivering coal that typically fell short of both average minimum quality China Presses Coal Mining Industry to Improve Safety specs and the rejection limits set out in the amended CSA and its The Chinese government recently urged the coal industry to improve predecessor coal supply contract, Oxford said. work safety by ordering mines to invest more in safety facilities and As a result, Big Rivers “determined to source its coal supply the education of workers. According to Xinhua Online, the State needs covered by the amended CSA either on a reduced pricing Administration of Work Safety announced it had raised the mini- basis extracted from Oxford or elsewhere for less money, despite its mum requirement for safety investment for coal mining companies. contractual obligations to Oxford,” according to the suit. “At that Under the new rules, coal mining enterprises will put aside at least time, Big Rivers began to make complaints about coal quality, and CNY 30 ($4.80) for each ton of coal output of mines that have high for the first time threatened to reject Oxford’s coal, as a pretext to levels of gas and CNY 15 ($2.40) for other less dangerous mines. extract from Oxford a reduction in the pricing under the amended The standard is set at CNY 5 ($0.80) for surface mines. The funds CSA or to set up Oxford for a termination enabling Big Rivers to seek will be used for improving safety facilities, safety education and coal elsewhere at lower pricing.” preventions of health damage, underground shelters and monitor- This alleged strategy by Big Rivers, Oxford said, “was made clear ing equipment. when a Big Rivers representative told an Oxford representative in a meeting in late February 2012 that, if Oxford would reduce the price Dalrymple Bay: Coal Ready for Export charged under the amended CSA to the currently prevailing market Despite recent wet weather disrupting some major mining companies’ price, ‘everything would be okay’ despite its new quality com- operations, Dalrymple Bay Coal Terminal reports it has a good supply plaints, and all of those complaints about quality would go away.” of coal ready for export, the Daily Mercury reported. Although the coal Oxford said Big Rivers wanted the price rolled back from terminal has the capability of shipping more than 7 million metric 2.0402/mmBtu to $1.8946/mmBtu, a reduction it claimed would tons (mt) a month, it is only processing about 4 million mt a month at have slashed prices under the amended CSA by more than $2 mil- the moment, due to a decreased global demand for coal. A DBCT lion annually. spokesman said, “There has been sufficient coal to load three quar- Oxford said it rejected the proposal, Big Rivers canceled the con- ters of vessels at any time in the last few months. The wet weather tract and Oxford responded by filing the lawsuit. caused just a slight delay of about a day, although it was more due to A Big Rivers official said the contract was shelved because of strong winds and the seas that built up rather than rain.” Oxford’s “repeated failure to meet contract coal specifications.” As of late April, Big Rivers had not yet replaced the Oxford contract, the Leighton Asia to Provide Services for Borneo Coal Mine official added. Leighton Asia has won a A$420 million contract to provide mining services to PT Marunda Grahamineral’s coal mining project in Borneo. Craft Remains Optimistic According to Bernama, the project involves the annual extraction of Alliance Resource Partners’ earnings fell in the first quarter, fail- more than 2 million metric tons of thermal and coking coal. The con- ing to meet its expectations, as a mild winter and a slow U.S. tract represents Leighton’s first strategic move into coking coal min- economy combined to delay coal deliveries and drive up invento- ing in Borneo’s emerging Central Kalimantan region. Under the ries at its operations by more than 575,000 tons. But, Joseph Craft contract, PT Leighton Contractors Indonesia will provide project man- III, longtime president and CEO of the Tulsa, Okla.-based compa- agement, mine planning and surveying services. It will also supervise ny, still believes Alliance has an opportunity to make 2012 its 12th and secure the site as well as supply materials, heavy equipment, straight year of record earnings. “We expect to reduce our inven- labor transportation, medical services and site infrastructure. PT tory over the balance of the year,” he told coal analysts during an Leighton Contractors and PT Marunda Grahamineral have yet to final- April 30 conference call. “We hope 2012 will be another record ize the contract terms and conditions. year for ALRP.” Alliance is focusing on the Illinois Basin and Northern Chinalco to Acquire Mongolia’s South Gobi Mine Appalachian coalfields, which Craft sees as growth regions, particu- Chinese multinational aluminum company Aluminum Corporation larly the IB. “For the IB, we see production of 115 to 120 million tons of China (Chinalco) has signed a lock up agreement with this year,” he said. “We think it has an opportunity to grow another 20 million tons over 2013-2014, with most going to the U.S. steam Continued on pg 10... market, but some going to the export market as well.” About 110 million tons were produced in the IB in 2011.

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For the three months ended March 31, Alliance earned $83 mil- Continued from pg 8... lion, compared to $95.3 million a year earlier. The company Canadian international mining company Ivanhoe Mines. The enjoyed a healthy increase in coal sales revenue, rising 5.4% to largest shareholder of the coal producer South Gobi Resources Co. $429.6 million. based in Mongolia with capacity of 4.57 million metric tons of raw Alliance did set one record during the latest quarter—for produc- coal per year. According to the agreement, Chinalco will purchase tion. Its 8.5 million tons represented a 3.5% jump over a year ago. the entire shareholding of Ivanhoe Mines for about US$1 billion to Craft acknowledged the coal industry faces challenges, not the acquire a majority stake of SGR. least of which are extremely low natural gas prices that hovered around $2/mmBtu in the spring. That has led some electric utilities Colombian Coal Exports Remain High to switch from coal to gas, causing coal’s share of domestic electrici- Colombian coal exports have remained at relatively high level, edging ty generation to fall below 40% for the first time in years. 0.2 million metric tons (mt) lower February to 6.7 million mt in March. Craft, though, predicted that gas prices “have hit their bottom This is still 0.7 million mt higher than the year ago level. According to and will be going up in the future.” As a result, “We don’t anticipate SSY Online, total exports in the first quarter 2012 reached 19.7 mil- in the 2013 timeframe, or even 2012, any further gas switching. lion mt with an increase of 3.2 million mt on the corresponding 2011 When you get beyond that, a lot will hinge on the election in 2012,” a level. Exports to European counties continued to dominate in March reference to the race between President Barack Obama, a Democrat, (at 4.9 million mt), but significantly shipments to the Far East and his likely Republican challenger, Mitt Romney. Many in the reached a seven-month high of 0.5 million mt. industry accuse the Obama administration of waging a “war on coal,” especially through new pollution control regulations by the BHP Offers Metallurgical Coal Update for Australia Environmental Protection Agency and heightened enforcement by Queensland Coal production remained constrained in the March the Mine Safety and Health Administration. 2012 quarter as a result of industrial action and heavy rainfall. The Craft said he sees the thermal export market continuing to extent to which industrial action will continue to affect production, evolve in the latter half of this year. In addition to the European sales and unit costs is difficult to predict, however with inventories market, “We’re seeing interest increasing in the Asian market as well now severely depleted, the impact on future quarters may be signif- as India,” he said. “There is increased activity. As we look at 2013, we icant. Force majeure was declared across all BMA sites in April don’t see any reason why the demand appetite would not continue. 2012 and remains in place. A planned longwall move and plant We believe it will continue…world demand for coal continues to be shutdown at Dendrobium led to lower production at Illawarra Coal at a strong pace, contrary to what we’re seeing right now in the (Australia) in the March 2012 quarter. A longwall move at Appin is United States.” scheduled for the June 2012 quarter. In the U.S., he said, coal demand has “pretty much flattened out, and we’ll have a sustained 800 million to 900 million ton burn in the Chalco to Buy 30% Stake in Winsway Coking Coal U.S. for the next 10 to 15 years.” Aluminum Corp of China Ltd., the country’s largest aluminum producer, plans to acquire a 29.9% stake in imported coking coal sup- Foresight Energy Seeks to Raise More Money through IPO plier Winsway Coking Coal Holdings Ltd. for a total consideration of Foresight Energy Partners, an Illinois Basin high-sulfur steam coal $308 million, making it the largest single shareholder of Winsway producer, now is seeking to raise $300 million from an initial pub- Coking Coal. Chalco said that the takeover is expected to strength- lic offering (IPO), three times the amount it sought in an original en its downstream logistics operations and allow further integra- February 2 filing with the U.S. Securities and Exchange tion of its investments in the coal sector especially trading of coal Commission. from Mongolia and the proposed acquisition of SouthGobi In an updated April 12 submittal to the federal agency, Resources Ltd. Foresight, with headquarters in St. Louis, disclosed the revised amount. The company filed for an IPO shortly after being formed SAIL to Import Coking Coal by Cline, who owns four underground mining complexes in Steel Authority of India Ltd.’s Coal Import Group has floated a global Illinois: Williamson, Sugar Camp, Hillsboro and Macoupin. notice inviting tender for procurement of 500,000 metric tons (mt) of According to the filing, Foresight generated more than $500 mil- imported freshly mined prime quality washed or unwashed hard cok- lion in coal sales in 2011, earning an $82.1 million profit in the ing coal. The material is to be delivered during June-November 2012, process. The company produced 7.2 million tons of coal in 2010 and with the first shipment is to be made in June or July. Bids are invited 10.4 million tons in 2011. The coal is sold to electric utilities in the from overseas coal producers owning coal mines or overseas coal U.S. as well as the “seaborne thermal coal market.” suppliers duly backed by letter of authority of the concerned coal pro- In recent years, the company has exported approximately 33% of ducer. The imported coking coal to be supplied should have a size its coal to Europe, South America, Africa and Asia. ranging from 0-50 mm while the total moisture content should be Foresight described itself as a low-cost producer of “high Btu 8%, ash content should be 8%, whereas sulfur content should be thermal coal” that operates longwall mining systems at three of its 0.6%. Interested parties can submit their bids until May 14, 2012. complexes, Williamson, Sugar Camp and Hillsboro. Macoupin is a The bids will open immediately after expiry of the deadline for sub- continuous miner operation. During 2011, Foresight said its con- mission of bids. solidated cash costs of production were $19.85/ton, “which we believe makes us the lowest cost underground producer in the ˛ United States.”

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Foresight has invested more than $1.6 billion in the four min- m PEOPLE IN THE NEWS ing complexes, which all have “long reserve lives which we believe will provide us with significant sustainable free cash flow.” The Arch Coal, Inc. has appointed Paul A. Lang complexes are designed to support up to eight longwall systems, executive vice president and COO, and Deck S. giving them a combined productive capacity of up to 65 million Slone senior vice president, strategy and public tons a year. That essentially would double the current output policy. Douglas Conaway has also been appoint- from all Illinois coal mines. ed vice president of safety. Arch also announced For 2012, 2013 and 2014, Foresight has secured coal sales commit- that Jennifer M. Beatty has been promoted to vice Paul A. Lang Deck S. Slone president, investor relations. C. Henry Besten, ments for approximately 14.5 million tons, 13.8 million tons and 11.3 senior vice president of strategic development, will retire in June after 40 years of million tons, respectively, of which all in 2012, 9.3 million tons in 2013 service with Arch and its predecessor companies. and 6.9 million tons in 2014 is priced. The respective prices for the three years are: $58.32/ton in 2012, $59.80/ton in 2013 and $63.53/ton in 2014. Alpha Natural Resources recently announced that Paul Vining Foresight said it currently operates one longwall each at will add the position of president to his current role as chief com- Williamson and Sugar Camp. It plans to begin operating a longwall at mercial officer. Kurt Kost, Alpha’s current president, is leaving the Hillsboro in the third quarter of this year, “having already invested company following 31 years of service. He will remain with Alpha most of the expansion capital necessary to develop these mines.” until the end of May 2012, serving in an advisory capacity. Vining The company said it plans to use IPO proceeds to make a contribu- Paul Vining will continue to have responsibility for sales and marketing, and tion to Foresight Reserves. Morgan Stanley and Citigroup Global will add responsibility for Alpha’s mining operations, assuming Markets are serving as joint book-running managers for the IPO. all of Kost’s duties. Illinois May Soon Decide on FutureGen 2.0 Peabody Energy announced that all 11 directors were re-elected for one-year This could be a watershed year for the long-delayed FutureGen near- terms at the company’s 2012 annual meeting of shareholders. Re-elected direc- zero emissions coal-fired power project proposed for Illinois, as devel- tors are: Gregory H. Boyce, chairman and CEO, Peabody Energy; William A. Coley, opers are expected to find out by year’s end if the plant’s 166-mw output former CEO, British Energy Group plc; William E. James, co-founder and managing will be included in an upcoming Illinois Power Agency solicitation. general partner, RockPort Capital Partners LLC; Robert B. Karn III, former manag- The project has undergone several changes since it was ing partner, Arthur Andersen in St. Louis; M. Frances Keeth, former executive vice announced by former President George W. Bush in 2003. In president, Royal Dutch Shell, plc; Henry E. Lentz, former managing director, Lazard December 2005, the FutureGen Industrial Alliance, a non-profit Freres & Co. LLC; Robert A. Malone, former executive vice president, BP plc and consortium of coal mining and electric utility companies, entered CEO, First National Bank of Sonora, Texas; William C. Rusnack, former president into a cooperative agreement with the U.S. Department of Energy to and CEO, Premcor Inc.; John F. Turner, former U.S. assistant secretary of state for develop what was billed as the cleanest coal plant in the world with the Bureau of Oceans and International Environmental and Scientific Affairs; a target of zero emissions, hydrogen production and carbon dioxide Sandra A. Van Trease, group president, BJC Healthcare; and Alan H. Washkowitz, sequestration capabilities. In December 2007, a 444-acre site near former managing director, Lehman Brothers Inc. Mattoon, in Coles County in east-central Illinois, was selected. In January 2008, the project was restructured after its estimated American Electric Power has appointed Alberto Ruocco vice president and chief cost began rising to about $1.8 billion. In the summer of 2010, it was information officer. reconfigured as FutureGen 2.0, with a lower $1.3 billion price tag and plan to repower Ameren Illinois’ Meredosia power plant in Colombia Energy Resources, Inc. has appointed Brian L. Miller vice president of Morgan County with oxy-combustion technology. Coles County business development, strategic planning and marketing. Miller has held numer- subsequently withdrew from the project. Since then, developers ous senior management positions in the natural resources and coal industry, most have been trying to advance the project to the construction stage. recently as a vice president of Alpha Natural Resources. Last year, the Illinois General Assembly passed legislation facili- tating the planned construction of a 32-mile-long, underground Xylem has appointed Grant Salstrom managing director, Godwin. pipeline to carry CO2 from Meredosia to a storage location else- He will be responsible for the growth and development of the where in the west-central Illinois county. Godwin and Flygt brands within the dewatering market in the Now, the FutureGen Alliance, which also has changed over the Grant Salstrom United States. years, has submitted a draft proposal to the IPA, which buys electricity on behalf of Commonwealth Edison and Ameren Illinois, the state’s DSI Underground Systems Mining USA recently announced personnel promo- two largest electric utilities. IPA’s purchase plans are sent to the Illinois tions/additions: Jeff McCall has been appointed East sales manager; Jeff Bauschard Commerce Commission for approval or denial. “The Alliance wants to has been appointed West sales manager; Scott Shapkoff has been appointed North have this included in the next round of purchases in Illinois,” said America special projects manager; Ted Allen has been appointed Cambridge plant FutureGen spokesman Lawrence Pacheco. A power purchase agree- operations manager; and Mike Yaworsky has been appointed Salt ment “is a key component for moving the project forward,” he said. Lake City plant operations manager. IPA Director Arlene Juracek is expected to forward the agency’s power purchase plan to the ICC late this year, with a final commis- Richard Tagge, former general manager of Mine Radio Systems sion decision by late December. In the meantime, Pacheco said Africa, has returned to the United States to take over the role of FutureGen intends to make an announcement this summer about MRS U.S. sales manager. Richard Tagge the CO2 pipeline route through Morgan County.

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Addington Hopes to Restructure Debt years, after three creditors in mid-2009 filed an involuntary Longtime eastern Kentucky coal operator Larry Addington, who petition with the eastern Kentucky court to force the coal filed personal bankruptcy January 26, wants an opportunity to producer into Chapter 7. Since then, Appalachian Fuels has restructure his debts and is opposing efforts by the United States been selling off assets, for the most part one at a time, including trustee to convert his case from a Chapter 11 reorganization to a a deal with Massey Energy Co., now owned by Alpha Natural straight Chapter 7 liquidation. Resources. According to Addington’s bankruptcy filing in the U.S. In Addington’s case, the trustee told the court the case should Bankruptcy Court for the Eastern District of Kentucky, he owes be transferred to Chapter 7 to give creditors a better chance to $37.2 million to numerous creditors while having assets of $7.1 recoup their losses. million. Caterpillar Financial Services Corp. is the largest unse- Through his attorney, Donald Mallory, Addington disagreed. cured creditor, owed $9.5 million for leased equipment that In an April 12 filing with the court, Mallory said, “the practical Addington personally guaranteed, court records show. realities and necessities of the…case demonstrate that there is no One of Addington’s companies, Appalachian Fuels LLC, other party with the likelihood of providing a substantial recovery has been undergoing bankruptcy reorganization for almost three to creditors of the estate other the debtor. In fact, the debtor’s

DATELINE WASHINGTON EPA’s Beyond Coal Campaign

BY LUKE POPOVICH

A useful word has crept into policy discussions in this Administration confirms scattered evidence that coal’s share of the market, town—it is “orderly,” as in the “orderly exit” of bank- now around 42%, is falling and may fall lower before finding the bottom. rupt countries from the Eurozone, the “orderly default” Obviously cheap and abundant gas is a tempting alternative to coal on big bank loans or an “orderly withdrawal” from today. Maybe it will be next year, too. But gas being historically a volatile Afghanistan. Change, in other words, may be source of electricity generation, Akins and other utility executives are inevitable but it need not be harmful. And when pleading with the administration not to put all our eggs into the gas change is disruptive it shouldn’t be destructive. basket. A decade ago they saw gas prices quadruple within a few years Makes sense. when federal incentives favored gas capacity but not gas production. So then why isn’t the administration applying that same “orderly” Just five years ago most deep thinkers wanted LNG terminals to bring logic to its “energy policy?” That’s the question the NMA and coal-using gas into the country; they now want those same terminals to export the utilities have been asking. The serpent’s nest of new air regulations that stuff. And not long ago the environmental community stood with gas the EPA is hatching for coal-based power plants will destroy a signifi- industry executives praising their carbon-light fuel as a “bridge to the cant chunk of current capacity over the next several years. Reputable future” of “green” energy. The same people have now launched a analysts have forecast up to 20% or more of the existing fleet could be “beyond gas” campaign to regulate hydraulic fracturing and stop gas retired thanks to a slew of concurrent EPA rules aimed at controlling exports. mercury, air toxics, nitrogen oxide, sulfur dioxide, heavy metals, particu- Another, more basic objection to the EPA’s “beyond coal” approach late matter and greenhouse gases. came first from the NMA and now comes from Congress—i.e. the agency True, the greenhouse gas rules announced this spring are aimed only is failing to present the public with transparent and plausible alterna- at future plants for now. But many believe—and the EPA hasn’t tives. The government has not totaled up the cumulative impact its reg- denied—that sooner rather than later similar controls will be applied to ulations would have on coal combustion, let alone on the electricity grid existing plants. Environmental lawyers may “force” the EPA to do this in and the economy it supports. Instead, the EPA has used a balkanized, court. And anyway, compliance with the Cross State Air Pollution Rule rule-by-rule approach specifically to avoid such a look—and the ugly and the new utility technology rule will also impact the coal fleet by forc- reality we would see. The little costs the EPA reluctantly acknowledges ing modifications to boilers and combustion processes—modifications look even smaller next to the bloated benefits it claims but can’t sub- that may also trigger further costly controls on existing plants. stantiate. Apparently we should worry. We have earnest assurances from senior This is not the makings of an orderly, thoughtful transition. An EPA officials that they’re not out to destroy coal-based generation. orderly transition from a fossil fuel economy to a carbon light economy They’re not crucifying them either. No, really. Were it not for these assur- would look much different. For one thing, it would cautiously move us ances, a person might reasonably conclude that the real purpose here is away from energy we have in abundance to sources we cannot scale up wholesale coal capacity destruction, and that what we’re actually seeing for decades. It should acknowledge the risks of destroying valuable is a plan to euthanize old coal plants. capacity with unsupportable standards and unrealistic compliance If this is not the intention, it may be the result. About 33 gw of coal- deadlines. It could require compliance standards for coal that actually based capacity has already been slated for retirement. “At the peak of 2007 reflect technology for coal and not for an entirely different energy source. and 2008, we were taking about 80 million tons of coal a year,” said AEP Shoulda, coulda, woulda. Doesn’t. CEO and Chairman Nick Akins in a recent interview. “Today, that’s probably Popovich is a spokesperson for the National Mining Association, the down to the order of 55 million tons of coal a year.” The Energy Information industry’s trade group based in Washington, D.C.

14 www.coalage.com May 2012 news continued ability to formulate a plan that is approved by the creditor con- scribed narcotic medication as part of his medical treatment, he stituency will almost certainly lead to higher recovery to creditors entered into personal guarantees and at such time, did not have than would protracted litigation whereby the only parties who the requisite capacity to enter into contracts, etc.,” Mallory said. would benefit would be the respective counsel.” Addington no longer is suffering “any impairment as a result of Mallory disputed assertions by the liquidating trustee in the case medication which would impair or cloud his mental facilities in that Addington, who underwent multiple surgeries after being diag- administering this estate,” Mallory said. nosed with throat cancer in 2006, is “under the influence” of pre- Court documents also show that Addington no longer owns a tiny scribed narcotic medication and, as a result, is “incompetent.” island, Caye Chapel, off the coast of Belize. Addington purchased the Addington has said he was “incapacitated,” not incompetent, island a quarter-century ago and developed it into a golf resort. when he personally guaranteed coal company debts, his attorney Information filed by Mallory shows the island was listed for sale at stated. “The clear distinction being that while he was being pre- $75 million for several years. At one point, Addington had an offer for $50 million, “but it was rejected because it was thought to be too low,” CALENDAR OF EVENTS Mallory said. Addington indicated the Bank of Belize attempted to foreclose on the property and took the equivalent of a deed in lieu of May 30-31, 2012 AIMS 2012 7th International Symposium: Rockbolting and Rock foreclosure. Mechanics in Mining—will be held in Aachen, Germany. Contact: Mirjam Rosenkranz, RWTH Aachen University-Institute of Mining Engineering (Tel: 49-(0)241-80 95673; Patriot Coal Idles More Output Fax: 49-(0)241-80 92272; E-mail: [email protected]; Web: Patriot Coal Corp. will further reduce thermal coal production in www.aims.rwth-aachen.de). response to continued weakness in market demand. The company disclosed the planned idling of the Freedom underground May 30-June 1, 2012 Western Mining Electrical Association Bi-annual Meeting—will be held at the Harrah’s in Reno, Nev. Contact: WMEA (Web: www.wmea.net). mine and, pursuant to the WARN Act, gave 60-day notice to affected employees. The Freedom mine is located in the Bluegrass June 13, 2012 Brookwood-Sago Seminar “Measuring Progress Toward a Safety Culture complex near Henderson, Ky., and produced 1.2 million tons of of Prevention in Mining”—will be held at the Crowne Plaza Hotel Pittsburgh International thermal coal in 2011. Following this action, Patriot will have no Airport in Pittsburgh, Pa. Contact: Penn State University (Tel: 814-865-7472, Fax: remaining uncommitted Illinois Basin thermal coal for 2012 814-863-1621; Email: [email protected]; Web: www.eme.psu.edu/miner- delivery. stownhall.html). “Thermal coal markets remain weak as a result of the mild winter, June 17-20, 2012 14th U.S./North American Mine Ventilation Symposium—will be held at coupled with low natural gas prices and reduced demand for electric- the University of Utah in Salt Lake City, Utah. Contact: Department of Mining Engineering, ity related to the economic downturn. We are taking this step to align Dr. Felipe Calizaya (Tel: 801-581-5422; Fax: 801-585-5410; Email: production with committed sales,” said Patriot Executive Vice [email protected]; Web: http://web.utah.edu/14mineventsymposium/index.html). President and COO Ben Hatfield. “Additionally, during the first quar- July 17-19, 2012 Colombian Mining Conference 2012—will be held at the Hotel Irotama ter, we idled three smaller Central Appalachian thermal coal mines Resort Golf Marina in Santa Marta, Colombia. Contact: Ibarra Garrido Investments (Tel: that together produced about 1.2 million tons in 2011. In total, includ- 575 3685666, Colombia or 786-224-2062, USA; E-mail: [email protected]; ing this announcement and the previously announced closure of the Web: www.ibarragarrido.com). Big Mountain complex, we have reduced Patriot’s annual thermal production by more than 4 million tons compared with 2011.” July 31 - August 2, 2012 31st International Conference on Ground Control in Mining— The company plans to provide updated guidance for 2012, will be held at the Lakeview Golf & Spa Resort in Morgantown, W.Va. Contact: Karen Centofanti (Tel: 304-293-3901; E-mail: [email protected]) or Karla including anticipated thermal coal volume, in conjunction with its Vaughan (Tel: 304-293-3886; E-mail: [email protected]); Web: icgcm.con- first quarter earnings announcement. ferenceacademy.com. Ingram to Acquire U.S. United Barge Line August 22-23, 2012 2nd Underground Coal Gasification Network Workshop—will be Ingram Barge Co. has reached an agreement to acquire U.S. United held in Banff, Alberta, Canada. Contact: Debo Adams, IEA Clean Coal Center (Tel: 44 Barge Line, LLC (UBL), a barge transportation company headquar- (0)20 8246 5268; E-mail: [email protected]; Web: www.UCG.coalconfer- tered in Tampa, Fla., with a major operating office in Metropolis, Ill. ences.org). “The acquisition will allow Ingram to continue its leadership role in September 5-6, 2012 MEMSA Annual Technical Symposium—will be held in Clearwater, the inland marine industry in providing best-of-class customer ser- Fla. Contact: Mining Electrical Maintenance Association (Web: www.miningelectri- vice and frequency of call for its customers,” said Craig E. Philip, cal.org). CEO, Ingram Barge Co. The acquisition will add 17 towboats and September 20-21, 2012 Platts 35th Annual Coal Marketing Days Conference—will almost 650 barges to the Ingram fleet. Approximately 300 UBL asso- be held in Pittsburgh, Pa. Contact: Erica Giardina (Tel: 781-430-2115; Email: eri- ciates will join Ingram. [email protected]; Web: www.events.platts.com). “This acquisition will allow us to renew and replenish our barge and towboat fleet and add the excellent, well respected marine September 24-26, 2012 MINExpo—will be held at the Las Vegas Convention Center employees of UBL to our family of associates,” said Orrin H. Ingram, in Las Vegas, Nev. Contact: Hall-Erickson Inc. (Tel: 866-717-6463; E-mail: minex- [email protected]; Web: www.minexpo.com). chairman of the board, Ingram Barge. UBL will be acquired from its owner, United Maritime Group, November 14-16, 2012 Western Mining Electrical Association Bi-annual Meeting— LLC, in a transaction that is expected to close in the second quarter will be held at El Tropicano Hotel in San Antonio, Texas. Contact: WMEA (Web: of 2012, subject to receipt of applicable regulatory approvals and www.wmea.net). satisfaction or waiver of other customary closing conditions.

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“This acquisition will maintain our ability to provide effective, “Fatalities are preventable,” said Joseph A. Main, assistant efficient and economical transportation services,” Philip said. secretary of labor for mine safety and health. “Many mines oper- “We anticipate the acquisition of UBL will enable Ingram to serve ate every shift of every day, year in and year out, without a fatality a broader base of valued customers with the type of focused cus- or a lost-time injury.” tomer service for which Ingram, and UBL, have been known.” Main noted that fatalities can be prevented by using effective United Maritime Group was purchased in 2007 by an investor safety and health management programs in the workplace. group led by Miami-based Greenstreet Equity Partners from its “Workplace examinations for hazards—pre-shift and on-shift, former parent TECO Energy and has operated in the coal termi- every shift—can identify and eliminate hazards that kill and nal, inland barge and ocean transportation businesses. injure miners,” he said. “Providing effective and appropriate training will ensure that miners recognize and understand haz- MSHA Releases First Quarter Mine Fatality Update ards and how to control or eliminate them.” The Mine Safety and Health Administration (MSHA) released a first MSHA has taken a number of actions to identify mines with quarter summary of mining deaths across the country. Ten miners health and safety problems, and has initiated several outreach died in work-related accidents at the nation’s mines during the first and enforcement initiatives, including “Rules to Live By,” a fatali- three months of 2012. ty prevention program highlighting safety and health standards Six coal mining deaths occurred in the following categories: most frequently cited during fatal accident investigations. Last exploding vessels under pressure, drowning, handling materials, rib month, MSHA circulated an accident prevention alert to the min- fall, machinery and electrical. An uncharacteristic trend identified ing industry in the wake of four consecutive weekends of mine over the quarter is that five of these fatalities—three of them involv- fatalities. The following weekend, a fifth fatality occurred. ing mine supervisors—occurred on five consecutive weekends. Four mining deaths in the metal/nonmetal industry occurred from acci- Clean Coal Campaign Teams with NASCAR dents involving powered haulage, a fall from an elevated walkway Dale Earnhardt Jr. has signed an agreement to represent and drive and, in two separate incidents, fall of material. awareness to the American Coalition for Clean Coal Electricity (ACC- CE) as part of its nationwide campaign to promote the importance of % 2012 AWARDS clean coal technology. The agreement is part of a larger sponsorship between ACCCE and JR Motorsports that includes primary branding on JRM cars for four events in 2012 and associate branding for the CONSOL Energy Earns Virginia Reclamation Award duration of the NASCAR Nationwide Series season. CONSOL Energy was awarded the 2011 Best Completed Deep Mine Award This is the first-ever sponsorship of a NASCAR team for ACCCE, from the Virginia Division of Mined Land Reclamation and the Virginia which supports energy policies that balance coal’s role in supplying Mining Association (VMA) for reclamation of its Consolidation Coal Co. E-2 the United States with affordable and reliable electricity. mine in Buchanan County, Va. Katharine Fredriksen, CONSOL Energy “We are extremely pleased to announce this new partnership, senior vice president of environmental strategy and regulatory affairs, not- which includes both elements of our primary assets—Dale Jr. and JR ed the reclamation award is indicative of CONSOL Energy’s commitment to Motorsports,” said Kelley Earnhardt Miller, general manager of JR being a good steward of the environment. Motorsports. “Teaming up with the American Coalition for Clean Coal “We consider being a good steward of the environment as one of the Electricity is somewhat new territory for us, one that we hope will take most important obligations we have,” Fredriksen said. “To be honored by the Dale Jr. and JR Motorsports brands to new homes and markets. the state of Virginia for our efforts further validates our commitment to our The ACCCE’s initiative to inform and educate about opportunities of core value of compliance, and our recognition that our responsibilities go powering with clean coal is something we can truly support with coal beyond those required by statutory obligations.” being such an abundant and affordable natural resource.” Charlie Bauguess, manager of closed operations for CONSOL Energy, The ACCCE will receive primary logo placement and branding on noted that one of things of which he is most proud of in conjunction with Cole Whitt’s No. 88 Chevrolet in Nationwide Series races at Dover the E-2 site award is that an adjacent stocked trout stream was protected during mining and reclamation. “The reclamation we conducted on E-2 is International Speedway (June 2), Michigan International Speedway proof positive that industry and the environment can and do co-exist,” Bauguess said. “Design and implementation of our reclamation plans oftentimes serves to not only protect wildlife and fish habitat, but to enhance it. As a fisherman, I am especially pleased to see in our reclamation of E-2 that a state trout stream was protected and enhanced through a reduction in sediment to that basin.” The E-2 site reclamation consisted of the Dismal Creek E-2A portals, fill F-1 and the Mine Rock Fill. CONSOL had an alternate material topsoil variance and implemented a post-mining land use of unmanaged forest on the site. The portals site was approved to operate within the buffer zone of Dismal Creek. While reducing sediment to a stocked trout stream, Consolidation Coal achieved a productive forest on breaker rock fill using current Forest Reclamation Approach Guidelines. DMLR released the per- The American Coalition for Clean Coal Electricity and JR Motorsports have reached an mit in March 2011. agreement in which ACCCE’s logo will appear on Cole Whitt’s Chevrolet during several NASCAR series races.

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(June 16), Iowa Speedway (Aug. 4) and Kentucky Speedway (Sept. 22). “In the court’s view, failure to issue a Section 10(j) injunction in ACCCE had associate sponsorship placement on Whitt’s car starting this case will send a clear message to Willow Lake employees that Big this week at Richmond International Raceway and continuing through Ridge... is too big for the law and not even the NLRB can do anything to the remainder of the season. ACCCE was an associate sponsor on Dale help Willow Lake employees,” Murphy wrote in his decision. Earnhardt Jr.’s No. 5 Chevrolet in the Nationwide Series race at “Big Ridge’s actions have dramatically shifted the status quo Talladega Superspeedway on May 5. between itself and its employees by refusing to bargain with the employees’ representative and retaliating against vocal UMWA sup- Federal Judge Issues Injunction Against Peabody Subsidiary, porters,” Murphy said. “As time passes, Big Ridge’s actions diminish Supports UMWA Organizing Win UMWA’s ability to organize and effectively represent Big Ridge’s U.S. District Court Judge Patrick Murphy of the Southern District of employees after NLRB issues its final decision.” Illinois issued a ruling granting an injunction sought by the United The UMWA filed for an election last year with more than 93% of Mine Workers of America (UMWA) and the National Labor Relations employees signed on cards authorizing the union to be their collec- Board (NLRB) ordering Big Ridge Mining, a subsidiary of Peabody tive bargaining representative. After an intense and illegal anti-union Energy, to cease engaging in anti-union threats and reprisals at its campaign by the company, the union won a close vote in May 2011. Willow Lake mine. Judge Murphy also ordered the company to rein- The company has refused to recognize the UMWA as the workers’ state a miner the company illegally fired after the UMWA won a May representative even though a NLRB Administrative Law Judge has 2011 organizing campaign at the southern Illinois mine. rejected the company’s objections to the outcome of the election. “Big Ridge’s employees are currently suffering significant ✍ harm due to the employer’s refusal to bargain collectively with LETTERS TO THE EDITOR their chosen representative, and UMWA’s ability to represent the employees’ interests in the future will likely suffer irreparable Dear Steve: harm in the absence of interim injunctive relief,” Murphy said. Murphy ordered the company to cease: Once again, Murray Energy Corporation (“Murray Energy”) and Subsidiary • Threatening employees with mine closure, job loss or other Companies must express our concern about your reporting in Coal Age Magazine unspecified reprisals because they support the UMWA; on matters affecting our Companies. Perhaps, I am being too sensitive, and, in • Promising employees benefits if they oppose the UMWA; the regard, I tested my sensitivity with that of other executives of our Companies • Discharging or otherwise discriminating against employees and third parties. They came to the same conclusion that I did. because they support the UMWA or discouraging employees In your article you left out something very important in our written, prepared from supporting the UMWA. statement of March 9, 2012, which you received. That statement is, Murphy also ordered Big Ridge to offer immediate reinstate- “Significantly, the agreement reflects the lack of evidence that any conduct by ment to the fired employee, Wade Waller, a miner with 28 years the Company caused the accidents of August 6 or 16, 2007.” of experience, seven of them at Willow Lake. All of the parties whom I had review the article came to the conclusion that your title, “Genwal Pleads Guilty Ending Crandall Canyon Investigation”, clearly Colorado Supreme Court Decides on the State’s Plan means that Genwal Resources, Inc. was guilty of somehow causing the unfortu- to Dump Coal nate deaths on August 6 and August 16, 2007 at the Crandall Canyon Mine, On April 23, the Colorado Supreme Court decided that lawsuits over which you discuss in detail. These misdemeanors, to which we pled guilty to end the state’s plan to force power plants to convert from coal to natural this drawn out investigation and its effect on our current employees and the fam- gas can go forward. The Colorado Mining Association scored a vic- ilies of the victims, had nothing to do with the victims’ cause of death. But, tory for coal when the court ruled a lawsuit against the Colorado again, you left that statement out of your article. Public Utilities Commission (CPUC) can proceed. To this day, no one is sure what caused the mountain to collapse at the In 2010, the CPUC ruled that many of the state’s coal-fired gen- Crandall Canyon Mine. When I arrived there, within four (4) hours of the accident erating plants would have to be converted to natural gas to bring as I was in Montana, the University of Utah had identified an earthquake, with the state into compliance with Environmental Protection Agency the epicenter about one and one-half (1 ½) miles south of the Mine. The regulations. The CPUC then claimed that opponents had not prop- University subsequently retracted this statement. No one really knows what hap- erly filed their appeals and their cases should have been dismissed. pened, but unquestionably, it was a tragic experience for all parties involved, and According to the Craig Daily Press, a lawsuit challenging the particularly the families of the victims. Colorado Public Utilities Commission’s approval of an implemen- In any event, Steve, we at Murray Energy and Subsidiary Companies have tation plan for House Bill 10-1365, also known as the Clean Air, never been given as fair of reporting from you as we believe that we deserve, Clean Jobs Act, will be heard in Denver District Court. whether intentional or unintentional. Again, I may be far too sensitive here, but I What the state Supreme Court actually ruled was to uphold the did check other folks’ opinion of your article and the import of your article based rights of the Associated Governments of Northwest Colorado on all of the facts, and everyone agreed with me. (AGNC) to question the validity of an agreement between the PUC Maybe you will consider printing this. You have my permission. and the Public Service Company of Colorado following passage of the bill. PSC is a subsidiary of Xcel Energy, Inc., established in Sincerely, December 2010. Murray Energy Corporation “We are very pleased the Colorado Supreme Court has made Robert E. Murray clear the AGNC’s right to have its day in court,” said Mike Sampson, Chairman, President and Chief Executive Officer Garfield County commissioner and AGNC chairman. “The adverse

20 www.coalage.com May 2012 news continued impacts of the PUC approved plan on Northwest Colorado commu- rental fee of $3/acre in addition to an 8% royalty payment for nities are staggering. Northwest Colorado communities rely on developed coal. valuable jobs associated with responsible coal mining and the Oxbow currently operates the Elk Creek mine, which is an under- PUC’s ill-conceived decision threatens these jobs.” ground longwall coal mine just north of the town of Somerset, Colo. If the plan goes forward, several coal-fired power plants in the The 785-acre federal coal lease tract contains approximately 3.8 mil- Denver area will be converted to natural gas or shut down by lion tons of recoverable coal that will be bypassed if not leased. Coal 2018. mining has been conducted in the area for more than 100 years. The Elk Creek mine has been in operation since 2002 and produces BLM to Sell the Rights to Mine the Elk Creek Tract to Oxbow approximately 3.8 million tons of coal annually. The Oxbow mine The Bureau of Land Management (BLM) announced it will host a employs generates approximately $7.6 million in royalties, of that, competitive coal lease sale on May 15 for a Lease by Application approximately 50% goes back to the state of Colorado. filed by Oxbow Mining, LLC, for a 785.79-acre tract in the Elk Currently, Oxbow Mining’s one mine, Elk Creek, produces 5 mil- Creek area in Gunnison County. The BLM’s open, competitive lion tons of high-quality bituminous coal annually. The D-seam coal leasing process awards the lease to the high bidder who success- from this underground mining operation has high calorific value fully meets or exceeds the fair market value of the coal, which is and is low in ash, sulfur and mercury. Elk Creek’s coal is much determined by the BLM. The minimum bid for the tract is sought after because it meets all environmental standards and is $100/acre or fraction thereof. All leases are subject to an annual perfect for power generation needs.

2011 Coal Company CEO Compensation

Average compensation for CEOs of the major public coal companies was Arch Coal Chairman and CEO Steven Leer received the largest dollar $4.3 million in 2011, according to an SNL Energy analysis of proxy data value increase in compensation in 2011, making $5.8 million, or $2 million filed by 12 coal producers and coal-landowning companies. That repre- more than in 2010. Leer, who has been Arch’s CEO since its formation in sents a 1.7% decline from 2010 for the same group of companies. 1997, recently announced plans to retire as CEO in April and pass the role Median pay, however, soared almost 43%, to $2.8 million from about $2 on to President and COO John Eaves. During 2011, in which Arch acquired million in 2010. International Coal Group Inc. in a $3.4 billion deal, Arch stock lost almost Meanwhile, share price values for the 12 analyzed companies plum- 59% of its value. meted an average of nearly 33% during 2011 as a global coal markets CONSOL Energy Chairman and CEO J. Brett Harvey remained the weakened. highest-paid coal company executive in 2011. Harvey has been CEO of Among the 12 companies studied, seven compensated their CEOs the coal and gas producing company since 1998. His total compensation more in 2011 than in 2010. in 2011 dropped to $14.5 million from $16.7 million in 2010. The bulk of Cloud Peak Energy President and CEO Colin Marshall received the his pay beyond his $1.1 million salary was in stock and option awards. highest percentage pay hike in 2011, receiving total compensation of Alpha Natural Resources CEO Kevin Crutchfield took the biggest pay nearly $3.5 million, up from $1.9 million in 2010. The increase was cut in 2011. His compensation declined almost 33% to $6.7 million from almost exclusively attributable to a stock award during 2011 valued at almost $10 million in 2010. Crutchfield received far less stock awards $1.5 million and stock option awards. In 2010, Marshall received no such and also did not receive a bonus under the company’s non-equity incen- awards. tive plan in 2011 because the company did not hit earnings targets.

22 www.coalage.com May 2012

roof bolting Roof Bolting Technology Improvements in machine design and consumables make a tough job a little safer

BY STEVE FISCOR, EDITOR-IN-CHIEF

A continuous miner operator might load a always looking at ways to improve their coal mine with a hard roof rock. Other coal record amount of shuttle cars in a shift, products. At the end of the day, it’s all about operators are using them on slope driving but the section doesn’t advance until the operator “buy-in.” The only thing more applications.” roof is bolted. Just like all of the other jobs frustrating to a roof bolter than trying to The big difference in comparing roof underground, when the conditions are install a rib bolt with limited protection is to drilling between coal and hard rock applica- good, the work is relatively easy. Ground find you have a box of limp resin cartridges. tions would be the head room. A coal drill conditions often change and the miners would have to be low-profile. “We could not have to deal with those conditions. Improving Roof Bolting Machines place a standard 2.5- to 3-ft rock drill ham- Roof bolting is hard work, where miners In addition to its recently announced HV mer on a coal drill,” said Ward Morrison, often have to lift cumbersome pieces of 32 roof drill for harder rock, J.H. Fletcher industrial mineral engineering manager, heavy metal into awkward positions. When has now modified its lower profile DDR Fletcher. “The diameter or the breadth of conditions change, and the miners are out roof bolter with the Rib Access design, the drill is not an issue for coal mines, but of their element, safety can become a con- which has become very popular with its the length is. This new HV 32 unit has been cern. High roof conditions can present a other models operating in higher seam built in a much more manageable 20-in. problem for people who usually work with heights. The HV 32 drill adds a percussive size. This unit is short and fat, while most low profile machines and vice versa. action to the rock drill giving it better pen- rock drills are long and thin.” Better engineered designs and improved etration for harder rock. “Really, it’s a rock The hydraulically-driven unit is similar technology are making the job safer and drill,” said Ben Hardman, sales and mar- to most rock drills except for its shape. more productive. The folks that build roof keting, J.H. Fletcher Co. “It’s mostly “The controls are also very similar to what bolters are constantly improving their geared toward limestone mines, but sever- we have on standard coal machines,” machines. Likewise, the companies that al coal operators have found a use for Morrison said. “One lever-operated valve manufacture bolts and resin cartridges are them. One unit is running in a Maryland is used for each action: feed, impact and

The Rib Access design (seen here in plan view) protects roof bolters from sloughing ribs.

26 www.coalage.com May 2012 roof bolting continued rotation. It’s a very simple change for a ergonomic features with respect to material repackaging the motor-pump configura- coal operator to move from rotation to handling. With a cover plate height of 36 in., tion, we made the walkway wider.” percussive action.” The rotation and the double-boom DDR has the lowest chas- Fletcher will display one of these impact section bolt together and that fea- sis for a walk-thru machine. Operating machines at MINExpo 2012 with an air cur- ture makes the device easier to maintain. height is a little higher (50 in.) and up to 8 ft. tain system mounted on it. “The air curtain Fletcher’s success with the Rib Access The Rib Access DDR can be equipped with is a centrifugal blower mounted on the HDDR boom in western U.S. applications either crawler pads or rubber tires. chassis that filters the air and ventilates is well-documented. “They have become a “As far as tramming from one entry to through the canopy,” Hardman said. “The standard design feature now,” Hardman another, it moves as quickly as any of the operator always has filtered air. We made said. “With the lower seam heights in the other machines,” said Dave Morris, senior this improvement first on a roof Ranger. East and the more difficult mining condi- product manager, Fletcher. “The tramming This will be a first for a walk-thru DDR. So tions, the walk-thru DDR has become one function can be controlled remotely. The far, the mines that use it, love it.” Operator of our top sellers. This lower profile remote operation is becoming more impor- buy-in can make or break a new project, machine has a non-lifting boom. One of tant. When the machines are fully loaded Hardman explained. “In this case, they the problems operators encountered was with bolts, resin, plates, etc., with a lower loved the unit,” Hardman said. materials handling. Installing the bolts chassis, visibility can be limited. The remote and plates on the rib and brow was a little tramming feature allows the operator a lot Supporting Heavier Loads difficult. The Rib Access design on the more freedom. Instead of climbing into the While not much has changed recently in walk through DDR was the obvious next deck, they can stand back from the machine the area of fully grouted rebar bolts (pas- step to protect coal miners.” and see their surroundings well.” sive bolts), many of the vendors market- Four Rib Access walk-thru DDRs are The roof bolters still have to climb ing roof control systems have announced currently operating in the field. “These through the middle of the machine to set new products as far as active systems, machines have been operating for four to the ATRS and perform their primary duties. such as tensionable roof bolts and cable six months,” Hardman said. “That num- The position controls are operated from bolts for primary and secondary support. ber will increase greatly soon. A number the mid-point of the machine. The drilling As Waverly McFarland, vice president of of customers have machines on order capacity remains the same, but safety and marketing for Minova explained, the and, once they see the Rib Access walk- productivity improves from a materials cable bolt’s ability to resist shear forces thru DDR, they will more likely convert handling aspect while bolting the rib. caused by horizontal roof movements those machines.” “The object was to provide full protec- and large downward deformations has The Rib Access feature protects the min- tion for the miners at all times,” Morris made them a very viable solution for ers from rib sloughage and it also has some said. “This was a crawl-thru chassis. By heavy ground conditions. Steel Supports for Slopes and Roof Falls

When DSI merged with American Commercial, it The arches within these canopies carry the static gained immense experience in steel supports for load. The space between the arches is normally filled mining and tunneling operations, such as steel arch- with wood lagging because it’s usually inexpensive es, supports, liner plates and lattice girders, etc. The and easy to install. “Wood has limited strength,” crossover application for this technology for coal Smith said. “In a potential high impact area, a mine operations is in either new slope construction (or would want to use the safest, most economical rehabilitating existing slopes), or supporting large design, which would be arches set on 3-ft centers. In underground expanses, such as turnouts or roof some roof fall situations, coal operators have placed falls. “We engineer steel structures to support under- fill above the canopies to lessen the impact.” ground operations,” said Ron Smith, vice president, Most modern slopes use a compartmentalized sce- engineering, DSI Underground. “We design the steel nario, with men and materials transported on the bot- configurations to support the really large openings tom and a conveyor in a top compartment. “That’s a at the bottom of the slope. great opportunity for our horseshoe arches because you “We also specialize in portal canopies, which are Portal construction with arch supports at the Sage can place a deck beam at spring line and divide those very useful in protecting portal construction from a Creek mine near Hayden, Colo. two areas,” Smith said. “In a side-by-side configura- dangerous highwall,” Smith said. “In zones where it’s tion, the mine would want to use a square set because impossible to stabilize the roof, such as major roof and Grade 50 was priced at a premium,” Smith said. of the shorter height and longer span. The straight falls, miners can erect the arches with high-strength “Now, with all of the advances in steel production, we beam, however, does not offer the same strength as lagging on a movable platform in a safe area and then can use a higher grade steel that has 50 ksi for the the arch.” A design compromise would use a flatter advance their way back into an area safely.” same price. More loads can be supported with the same arch, which has a little less rise to it. That design The biggest change Smith has seen in his nearly section.” Mining conditions are site specific and DSI retains some of the strength of the curved or bent 40-year career is the improving industry standards for can custom fabricate these sections for each mine, beam, Smith explained, while getting away from a steel. “We used to build everything with an A36 steel while keeping the same structural integrity. straight beam which requires a much heavier section.”

28 www.coalage.com May 2012 roof bolting continued

McFarland said. “With a continuous thread, these bolts can be trimmed to specific lengths as needed. They offer a high ulti- mate load and maximum bondage with all grouting material. The bolts can be easily cut using standard mining equipment.” The low weight relative to steel makes them easier to transport and install.

A Stiffer Resin Cartridge Echoing those sentiments, Renn Oler, engineering director for DSI Underground, mentioned that he and his team are having similar success with passive and active systems. In addition to its composite bolt (Mateen GFRP) and the Tandem Anchor bolts, DSI will soon introduce a tensionable cable bolt. Several longwall mines are using the Tenax, Tencate polymer mesh roof support system. “The composite bolt is particularly interesting, not only because of its high tensile strength, which is double or triple The Minova Tensionable Cable Butt applies active tension. the strength of the steel, but it is also non- sparking,” Oler said. “DSI has one of the Minova’s Tensionable Cable Bolt (TCB) grouted environment while offering a fast strongest nuts on the market. That will system offers the same versatility of tradi- setting upper half for quick anchoring and only increase the strength of the cable bolt tional cable bolts while providing the abil- a slower setting lower portion to lock in or any of the other active systems. ity to apply active tension that results in the bolt tension and roof compression,” The DSI resin assisted Nos. 5, 6 and 7 roof compression in the immediate roof. McFarland said. Tandem Anchor bolts use a design that “Using existing bolting equipment, the The more frequent requests that Minova emphasizes the slit in its shell and cham- TCB provides top-to-bottom tension from hears from the field is: ease of installation fer on the nut. As the tandem anchor is the bearing plate to the anchorage zone,” and increased holding capacity for chal- rotated and loaded, the plug pushes the McFarland said. “Depending on the min- lenging ground conditions, especially with shell down over the chamfered nut. ing cycle and application specifics, these rib support and control. “Our FiRep GRP Without the silt and chamfered nut, the bolts can be installed for both primary [Glass Fiber Reinforced Plastics] bolts are an shell shatters due to the extreme forces the and/or secondary support.” excellent option for these rib applications,” plug applies to the leaves. The use of the TCB System reduces the Over the years roof bolters have com- requirements for additional secondary plained that resin cartridges will go limp support since the high-capacity cables are after long periods of time. “Polyester resin able to maintain more volumes of frac- cartridges have to be treated differently tured and separated roof material. In addi- than other mine consumables due to the tion, TCBs can be installed in adequate shelf-life of the product,” said Oler. “Mine lengths to intersect competent roof sus- operators are routinely told to rotate their pension materials or help form competent inventory and avoid storage locations roof beams when installed with sufficient where polyester resin products are resin grout. “As part of our ongoing con- exposed to heat, or direct sunlight. Even tinuous improvement focus, we have with these precautions, some resin prod- added strand indentations to our cable ucts have to be scrapped due to shelf-life bolt configurations,” McFarland said. and heat exposure issues.” “These indented strands impart higher DSI Underground Systems has been anchoring capacity to the cable bolt, working diligently to solve the problems increased support stiffness, and offer the associated with the shelf-life polyester option of eliminating the traditional resin cartridges “We recently launched Garford Bulb from the bolt design.” FASLOC Extreme line of polyester resin Minova’s Very Low Insertion Force products,” Oler said. “The Extreme prod- (VLIF) resin is a key component of its TCB uct will stay firm for an extended period. system. “The VLIF resin cartridges make it It’s a stiffer package. Our cartridges are The DSI Tandem Anchor assembly. easier to insert the cable bolt into a fully now lasting much more than six months.”

30 www.coalage.com May 2012

fuel procurement

Electric Utility Fuel Procurement What future role will coal play?

BY STEVE FISCOR, EDITOR-IN-CHIEF

Coal-fired power generation has histori- bones of the electric interconnection in the rules,” Chilcote said. “The company is cally been an inexpensive source for United States. concerned about the timeframe and electricity. This situation, however, has The company operates in two manners, implementation process. These rules will already started to change—a trend that regulated and competitive. Most of the utili- have a significant impact on the coal will continue. To comply with recently ties that AEP owns operate as regulated util- industry. Certain states will feel the impact proposed rules from the Environmental ities, meaning they pass certain costs along more than others, especially the heavily Protection Agency (EPA), utilities now to customers and the process is governed by industrialized states that rely heavily on face a serious decision: install expensive state commissions, Chilcote explained. The coal-fired generation.” The top 10 most- pollution control equipment or close company owns AEP Texas, which is a com- affected states would be: Illinois, West coal-fired power plants. From a feasibili- petitive (unregulated) utility and AEP Ohio Virginia, Ohio, Alabama, Michigan, ty standpoint, the decision seems to be is now considering the competitive market. Indiana, Pennsylvania, Tennessee, cut and dry. Two other variables, the With 40,000 megawatts (mw) of generat- Kentucky and North Carolina. future costs for natural gas and state of ing capacity, the company is one of the There is a common misconception in the grid, complicate the decision. largest power producers in America. “We the U.S., which is promoted by environ- Delivering the Keynote at the 2012 are one of the largest electric power genera- mental advocacy groups, that the air is pol- International Coal Preparation Confer- tors and the largest coal consumer,” luted. In reality, Chilcote explained, the ence & Exhibition, which took place dur- Chilcote said. “For AEP, coal consumption quality of the air in the U.S. has improved ing May 2012 in Lexington, Ky., Kimberly has recently averaged 65 to 70 million tons substantially over the last few years.

Chilcote, manager coal procurement, per year. At its peak, coal consumption Mercury, CO2, ozone, lead, NOx, particulate American Electric Power (AEP), offered a reached 80 million tons or more. matter and SO2 have all decreased. “This sobering message to the U.S. coal busi- Unfortunately in 2012 a new chapter in this has happened with no additional rules since ness. She offered a utility perspective on AEP story begins. Coal consumption for 1990,” Chilcote said. the train wreck of EPA regulations and the 2012 will probably amount to a little more timeline for implementation. She also dis- than 50 million tons.” Chilcote singled out Recently Proposed Environmental cussed the competitive disposition of nat- low natural gas prices and the mild winter Regulations from the EPA ural gas. While most of her message was this year as the primary culprits. The first recently proposed rule has had not good news for the 200 coal operators Going forward, however, the EPA regu- many renditions. It started as the Clean Air and processing professionals in the room, lations will be the major limiting factors Interstate Rule, then became the Clean Air she did offer a few potential outcomes that for the continued use of coal. “AEP in gen- Transport Rule, and now its referred to as would reward continued reliance on eral is not opposed to the proposed EPA the Cross State Air Pollution Rule (CSAPR, coal as the fuel of choice for electricity generation. CSAPR: State Budgets v. Historical Emissions While most utilities had long term plans to upgrade pollution control equipment or close older plants, the proposed EPA rules have compressed the timeline for enacting those plans, Chilcote explained. Furthermore, the role of natural gas as a long term reliable low cost supply has increased with the discovery and exploration of shale gas. These market forces are having an impact on the role coal will play in the future of power generation. Headquartered in Columbus, Ohio, AEP provides generation, transmission and dis- tribution services to approximately 5.3 million customers in 11 states. It has 39,000 circuit miles of transmission lines, including 2,116 miles of 756 kV lines, the back-

34 www.coalage.com May 2012 fuel procurement continued casper in utility speak). “The goal of all of CSAPR rule are significantly lower in 2012 we will see with this reduction as far as mer- these rules has been to reduce the emis- and 2014 vs. the proposed rule (See Table, cury is minimal,” Chilcote said. “In addition sions that cross state lines, especially those p. 34). The timeline to comply would have to mercury, the rule also covers nine toxic headed toward the East Coast,” Chilcote been very compressed. metals and three acid gases. It is pretty far said. The rule that will have the most signifi- reaching. It will hit 46% of the electric gen-

CSAPR would reduce SO2 and NOx by cant impact on coal use will be the Mercury eration in the U.S., which would be1,350 73% and 54% respectively from 2005 levels. and Air Toxics rule, which is also known as coal- and oil-fired units at 525 plants. It will It was proposed in July 2011 with an imple- the Maximum Achievable Control have a significant impact.” mentation date of December 2011. “As a Technology rule or Utility MACT. The final More rules are being implemented by utility, we had six months to comply and rule was issued in December 2011. “Under the EPA, including ash, CO2, PM and frankly that is not enough time to develop a MACT, every plant must meet the same water. “All of these rules are going to force strategy,” Chicote said. “This is a federal emissions levels as the top 12 plants,” electric utilities to do one of two things: plan. The states had no input. The EPA’s Chilcote said. “It’s a pretty strict rule and install pollution control equipment or estimated compliance costs of $2.4 billion compliance will be difficult.” close the plants,” Chilcote said. “The pol- annually would be passed along to ratepay- There are MACT standards for mer- lution controls include scrubbers, SCRs ers. Fortunately, a federal court ordered a cury, other metals and acid gases. The [selective catalytic reduction systems], stay on December 30, 2011. They are cur- metals are measured as particulate mat- activated carbon injection and fabric fil- rently conducting hearings and the timing ter (PM) and the acid gases as measured ters. All of which cost more money. for this rule is unknown.” as SO2. The estimated annual cost to Utilities need years to design, permit and As originally stated, this rule would comply would be $9.6 billion annually. install this equipment.” impact 28 states and the District of Compliance is required three years after AEP has voiced its concerns. The com- Columbia. AEP has assets in this region. the final rule (April 16, 2015). pany believes the time for implementation CSAPR would have been implemented in Regarding mercury, 30% comes from (three years) is an unrealistic schedule. two phases. The first was supposed to start outside the U.S., Chilcote explained. Power Retrofits of emissions controls take more in 2012 with an initial reduction and then plants generate about 2% of the mercury than three years to complete. The costs in another reduction was slated for 2014. On emitted into the air. Most of it occurs natu- both capital investment and economic average, state budgets in the finalized rally through volcanoes and geysers. “What impact in communities will be significant. Grid reliability will also be a concern. U.S. EPA Regulatory Agenda There will be significant reduction in generation due to retirements and retrofits (out- ages). There is insufficient time to accommodate new generation development and grid modifications. Rate payers will see a dramatic increase in electricity costs. In addition to the unrealistic timeline and the exorbitant costs, there are concerns regarding men and material. “If all of the utilities are taking the same action, there is not going to be enough people and steel to get this equipment built and installed in the next three years,” Chilcote said. AEP believes the EPA should phase in the proposed rules over a longer time. In that case: Mercury and Air Toxics (MATS) • Environmental improvement would be achieved; • Grid reliability would be maintained; • The communities AEP serves and its facilities are protected; and • Cost are kept as low as possible. From 1990-2012, AEP invested $7 billion, which has amounted to an 80% reduction in

NOx and 73% reduction in SO2 (See Impact of Pollution Control Investments). “From 2014-2020, the additional increment in

reduction in SO2 and NOx will be very minor and the additional cost will be $6-$7 billion,” Chilcote said. “We are going to spend the same amount of money again to get a fraction of the original reduction.”

36 www.coalage.com May 2012 fuel procurement continued

Abundant, Low-cost Natural Gas has now become a significant player in utili- especially the Marcellus and Utica shale If the impending EPA rules were not enough ty markets,” Chilcote said. formations. to make operators reconsider the coal busi- The shale gas play has been big news, Gas consumption and production con- ness, it now has to compete with record low especially in the Midwest. New technology tinues to grow, according to data from the natural gas prices. This year gas prices have is allowing drillers to retrieve gas that’s U.S. Energy Information Administration been lower than they have been since the was once stranded. Much of the AEP ser- (EIA). This was one of the mildest winters 1990s, Chilcote explained. “So, as a fuel, gas vice region overlies many of the gas plays, on record and residential gas usage was down 3.9%, Chilcote explained. “Gas-fired Impact of Pollution Control Investments electric generation, however, was up 16%,” Chilcote said. “That 16% was taken away from coal.” Gas production is up 7.9% from last year, according to the EIA. “Right now, the U.S. has 2,479 billion cubic feet (Bcf) in storage, which is 934 Bcf above the five year average,” Chilcote said. “There is more gas being produced and there is more gas in storage, which will dampen gas prices.” At the Henry Hub, the average price for March was $2.18 per million Btu (MBtu), that’s down $0.32/MBtu from February. “The big question is: Will gas prices stay this low?” Chilcote asked. “Already, the projec- tion for 2012 gas price is estimated at $2.51/MBtu, the original estimate from 2011 for 2012 was $3.17/MBtu. For 2013, the forecast is $3.40/MBtu which is down Coal Procurement—2012 Projected $0.56/MBtu from the original estimate.” Chilcote said AEP does not believe gas prices will stay this low forever. “Prices will eventually climb again, but when?” Chilcote said. “There is a lot of speculation on this subject. Will it be this year or next year? We believe it will be in the next three to five years.” AEP’s annual coal burn dropping from 65 million tons to 50 million tons was mostly due to gas displacement. “The good news, if there is any good news, is that’s all of the gas displacement that is going to occur,” Chilcote said. “Gas has taken a share and it won’t be able to take much more until more gas-fired power capacity is built. There are a few gas plants being built, which will come online AEP Generating Capacity in the next few years, but there is not a lot of gas-fired plants being permitted and built right now.” The coal industry has lost 10 million tons at AEP, but going forward the 50 million tons or more should be a fairly stable level.

AEP Today & Tomorrow AEP’s 2012 projected burn reflects a fairly diverse system. “We buy coal from every basin,” Chilcote said. “In the West, we primarily burn subbituminous coal and lig- nite. We have brought some coal from the 1990 2010 2020 Powder River Basin into the East. Our CAPP [cenral Appalachian] burn is really going to

38 www.coalage.com May 2012 fuel procurement continued decline in the next few years, especially with rules. We would have to retire these units AEP Retirements scrubbers. We see our biggest growth eventually, but we will now be forced to potential in northern Appalachia [NAPP] or most likely retire these by 2014. When all of the Illinois Basin. Right now we have not these units retire, it will be questionable purchased a lot of Illinois Basin coal.” whether the grid will be able to handle it.” When AEP began installing scrubbers in First Energy (another electric utility serv- 1990, coal was king at the company. AEP ing Ohio) declared it will have to shut a few had no natural gas generation in what is units in 2012. During the first part of May, now referred to as the company's seven- PJM Interconnection, which regulates the state eastern footprint after the 2000 merger electric market in that part of the U.S., told with Central & South West added four new First Energy it cannot shut those units states. In the last decade AEP has added because the grid could not handle it (See more than 3600 mw of natural gas generat- Breaking News, p. 4). “There is a lot of work ing capacity in its eastern footprint. “During that needs to be completed on the grid the 1990s, companies bought, built, and between now and when these AEP units are eventually stranded gas-fired units,” scheduled to close,” Chilcote said. “It will be Chilcote said. “AEP purchased several of interesting to see if this work can be com- those assets and built its gas portfolio. The pleted in time for these units to close.” company added 2,000 mw in 20 years, but By 2020, AEP coal capacity will shrink coal’s share of generation dropped from further with a 25% reduction coal-fired 75% to 65%.” assets. “It’s not great picture for coal,” electric generation is definitely going to When AEP assesses its system, it’s easy Chilcote said. “Coal will still be king—kind change. EPA regulations will force utilities to see the company has a lot of older units. of. Gas will not have taken over, but it will to install pollution control equipment or They were built in the 1940s and 1950s. “As have an even larger portion of the generat- close plants. Natural gas will continue to be a utility, it doesn’t make sense for us to ing mix.” a competitive threat to coal use. Although invest the money to install the pollution Of the units that U.S. utilities are plan- both of these will have an impact on the control equipment on these units,” Chilcote ning to retire, all of them are coal-fired coal burn, America will still need coal to said. “We have more than 5,000 mw sched- units. Many of them burn CAPP coal. In the keep electricity as affordable as its rate pay- uled to retire due to all of the proposed EPA next few years, how much coal is burned for ers have come to expect.

May 2012 www.coalage.com 39 Finding a Perfect Balance

Powder River Basin mine balances nature preservation with energy development

The coal at the Dry Fork mine is drilled at a 20° angle. The mine has two coal formations. Here the lower 55-ft Canyon deposit is being drilled.

The Dry Fork mine is a surface coal mine with those rural cooperatives. Dry Fork is As Good as New located in the Powder River Basin (PRB) an industry showcase representing how Every element is part of the reclamation approximately 7 miles northeast of Gillette, mining, energy production and nature plan. Animals, trees, surface rocks—it is Wyo., on Garner Lake Road. The mine was can realize sustainable success. Dry Fork all documented in the permitting pro- constructed in 1989 and began commer- practices balance between conservation cess. “It’s a constantly evolving permit,” cial operation in 1990. About 70 employees and mining. It is a 24/7 operation at the said Director of Regulatory Affairs Beth work in the mine, which is well known for heart of the PRB and is scheduled to pro- Goodnough. “Currently it’s 25 volumes its safety and environmental achieve- duce an estimated 5 to 6 million tons of long and growing. ments. In 2009, the mine celebrated having coal annually, of which 1.5 to 2 million “We make efforts to replace wildlife gone nearly seven consecutive years with- tons will be used in the new Dry Fork micro habitat impacted by mining by out a lost time injury, and it recently Station, a 385 megawatt power plant, replacing shrubs, building rock piles, received three prestigious environmental located adjacent to the mine. planting trees and bushes, and installing awards including the Office of Surface The Dry Fork mine is a truck and load- rock and bluff type ledges in the reclama- Mining Excellence in Surface Mining er operation with Le Tourneau 1850 and tion,” Goodnough said. “The permit Award, the Wyoming Game, Fish Industry 1400 loaders and Cat 793D 240-ton and requires us to restore one shrub per Reclamation and Wildlife Stewardship 789B 190-ton haul trucks. The drilling is square meter on 20% of the reclamation. Award, and an Excellence in Surface Coal done with a new Atlas Copco DML blast- The seed mixes are rather complicated Mining from the Wyoming Department of hole rig with the new Atlas Copco Grizzly and include the Wyoming big sagebrush, Land Quality. Paw 10.625-inch bit. In the past, the mine silver sagebrush and a variety of native Western Fuels-Wyoming, Inc. is drilled 9-inch holes with an older drill, grasses and forbs. The mixes are tailored owned by a collective of cooperative but with the new DML, operators were to grassland areas, wetlands, bottom- power companies. The mine primarily able to increase hole size, allowing them lands, shrub patches and mixed sage- supplies coal to the utilities associated to expand their pattern by nearly 30%. brush/grassland post mine areas.”

40 www.coalage.com May 2012 gps guidance continued

On average, the Dry Fork mine produces 5 to 6 million tons per year for Western Fuels-Wyoming.

To support habitat, rock outcrops are sustainable. The region is known for fol- coal of different properties, which allows also replaced where the integrity of the lowing thorough reclamation processes. the mine to mix loads to a power plant’s rock makes it possible. Another recently specifications. Coal depth is a varying fac- constructed feature is a 4-acre alluvial The Right Machine tor in the PRB region. This makes reclama- valley floor that was recreated in a The DML is a new drill for Dry Fork, but tion a bit more difficult too. “We map reclaimed area to look similar to the one “it didn’t take but a couple weeks to get everything to ensure post-mining con- that had been present prior to mining. In comfortable with the controls. I like the tours coincide with pre-mining elevations. another area, the mine has succeeded in carousel system. It’s very user friendly. This includes setting topsoil aside during establishing a wetlands channel and has There are good safety features on this rig, initial excavation so it can be replaced three restored wetlands ponds. too, keeping you from screwing up,” said after reclamation. Basically the reclaimed In addition to reclamation, all climate Drill Operator Mark Lindsey. land will look just like it does before, just and subterrestrial elements are examined Lindsey thinks the drill has “lots of air lower because the coal has been and monitored. power and drills fast overall.” The DML is removed,” said Barnes. “Wetlands, hydrology, air quality, cli- outfitted with a 1900 cfm air compressor. The coal in this part of the Powder matology, archeology, wildlife—every- “I wasn’t too sure I’d like the GPS, but River Basin exists in two layers. “The coal thing is monitored, documented and now I’m spoiled because the depth is deposits came in two events,” said Barnes. reported monthly or annually. I see dif- always right on the money. Now I really The mineable Anderson layer is on ferent inspectors once or twice a month, like it,” he said. top, which is about 18 ft thick, and the federal and state. We have a variety of “It’s an advantage with the larger lower Canyon deposit is generally 55 ft folks with different focuses watching diameter hole because we don’t have to thick. A sedimentary stratum about 2 m what we do,” said Goodnough. As for how shoot daily,” said Mine Superintendent thick separates the two coal seams. When close reclamation efforts are to pre-min- John Barnes. He likes that the driller can drilling in coal, “The Grizzly bit drills like ing conditions, Goodnough said, “We’re be doing other things and they can stay a hot knife in butter and it’s easy drilling. trying to do in 10 years what it took ahead. Each blast usually requires 35 to It won’t plug up either,” said Lindsey. nature hundreds of years of evolution to 40 holes. When overburden is less than 30 When drill hole depths allow, both over- accomplish.” ft, they drill vertical holes. Deeper than 30 burden and coal are drilled in a staggered In total, the mine manages approxi- ft and they drill on a 20˚ angle. The over- pattern at a 20˚ angle. mately 10,000 acres of land. Of the mined burden is generally 60 ft deep. “The To be successful here, a mine has to area, nearly 20% of what has been dis- Grizzly Paw bit performs well when employ efficient and intelligent people turbed has been reclaimed to what it was, drilling through rock,” said Barnes. The and equipment. Getting the coal is just before any mining activity. Goodnough drill’s penetration rate is typically around part of a process that ends in reclaimed said the goal is to restore disturbed land 25 to 32 ft/minute. land…where the deer and the antelope right behind mined land. “We want a 1 to 1 Dry Fork is toward the north end of the will continue to play. ratio as we go forward, an acre reclaimed PRB and produces higher moisture, low This article originally appeared in Atlas for an acre disturbed,” she said. Dry Fork sulfur, subbituminous coal at 8,000 to Copco’s publication, Mining & Construction isn’t alone in its efforts to keep the PRB 8,200 Btu/lb. The mine has two pits with USA.

May 2012 www.coalage.com 41 gps guidance continued The Grizzly is Making a Comeback in Wyoming

New Grizzly Paw bit is finding success in the Powder River Basin

Atlas Copco has developed a new drill bit RPM the more aggressive the bit will cut. It He said keeping the pressure up also keeps specifically for softer overburden in geolo- took a really fancy machine to make this the compressor from heating up. gy like that of Wyoming’s Powder River bit just right,” he said. Overburden at his mine requires drilling Basin (PRB). For two years engineers, rock Schroeder pointed out that it takes a nearly 190 ft of hole depth with 12 1/4- tool technicians, machinists, drillers and different mindset when purchasing this and 10 5/8- inch diameter bits. customers worked together on a bit that bit; it has to be looked at based on cost per On the current bit they have drilled would increase productivity in the consol- foot. “I will guarantee the Grizzly for 375,000 feet using 14 buckets of teeth. This idated sandstone formation that is infused 200,000 ft. You can’t do that with other life-on-bit is not possible throughout the with hard igneous boulders. bits,” he said. mine as other areas have more abrasive Traditionally, the most successful bit in rock. “200,000 ft drilled is no problem, but the region has been a bit with hardened every situation after that is different,” said carbide teeth. However, when harder rock Schroeder. is encountered, a tricone may be needed The mine’s drill and blast foreman said to penetrate the formation. The Atlas other bits require more weight on bit too. Copco Secoroc Grizzly Paw bit allows the “When you don’t have to apply as much driller to penetrate glacial till and overbur- weight on bit, wear is reduced. Our old den to the coal seam. bits could go through as much as a bucket Drilling in the PRB generally requires a day.” He said there are benefits to other less than 200 ft of angle holes with 9-inch departments in the mine. “Maintenance is to 12-inch class bits. The most common not my area, and it’s hard to quantify, but I are 10 5/8- and 12¼-inch bits, although can tell you maintenance is less, too, Grizzly Paw sizes are currently available in because I don’t have to push the drill as 9, 9 7/8, 11 and 11¼ inches. Other sizes hard.” will be designed upon request. Pin sizes The driller agreed with the D&B fore- available are 6 5/8 and 4 ½ inches. man, “It saves on cables and cylinders. It The Grizzly Paw has evolved over nine has to.” He said he averaged weight-on bit generations in the last two years. It started at 9,000 lb when drilling with the Grizzly out as a sketch on a napkin from Elko Paw versus 12,000 lb with the bit he was Senior Area Manager Jim Wheeler. He using before. With the other bit, “I have to knew what he wanted and sat down with check the teeth after every hole. With the engineers to start the process. With the A driller with 22 years’ experience who Grizzly Paw I check every other hole unless help of computers and programmable log- tested the bit said, “I hope we never have I’m drilling in more abrasive sandy areas,” ic controls, the angle of the teeth and to use the old bit again.” the driller said. An average 12-hour shift placement of air holes were moved and The driller said that with the Grizzly drills 15 to 16 holes or 3,000 ft. “I can get 20 adjusted until they were just right. Paw bit he will out-drill the compressor. holes, but I want the rig working for the “There is more to this bit than one He doesn’t apply as much down pressure next guy,” he said. would think. This is high tech. At one time with the Grizzly Paw. The digital readout The D&B foreman said the most we overcorrected a full degree on the tooth shows a maximum of 1,200 feet per noticeable result of going with the Grizzly angle and the bit didn’t cut. This is the hour (fph) but he keeps it at 800 fph on Paw bit is consistency. “Driller to driller best formula for long-term wear and average. everyone has a different skill level. This bit aggressive cutting,” said Atlas Copco This mine drills with an Atlas Copco is more forgiving and equalizes the less Product Manager Rob Fournier. DMM3 with 2,600 cfm. He says at his mine skilled drillers with those with more expe- Atlas Copco Rock Drilling Tools they insert a choke above the bit to keep rience.” With the increased footage on Specialist Walt Schroeder has been work- the pressure up, but he knows others in each bit, greater penetration rates and ing with customers in the PRB to test the the area don’t do this. “We go deep and lower maintenance costs, he said the bot- bit in the varying formations and on dif- like to keep the pressure between 50 and tom line is the biggest benefit: “Overall my ferent rigs. “We’ve found the higher the 60 psi and the choke will help with that.” cost per foot is down, way down.”

42 www.coalage.com May 2012 slurry pumps

The Benefits of Slurry Pump System Optimization Improved energy efficiency and reliability enhance the bottom line

For most mineral processing application, thereby resulting in lower operating pumped is the Best Efficiency Point (BEP) tions, slurry pumps represent a key com- costs. And while it is often the anticipated of that pump. At this point, internal ponent. Too often, however, many plants energy cost savings that are used to justi- forces in the pump are at a minimum. As will take a “fit and forget” approach to fy a slurry pump improvement project, the operating point of a pump moves maintenance of these vital pieces of the fact is, benefits often extend well away from the BEP, this energy transfer equipment—at least until a critical repair beyond energy savings. efficiency falls and axial and radial forces is needed. There can be severe cost For example, shaft misalignment is increase. penalties associated with this approach. responsible for up to 50% of all costs Although some energy loss is Some of the most significant include related to rotating machinery break- inevitable (for instance, friction at wetted reduced productivity, and higher than downs. Accurately aligning shafts can surfaces, seal faces and within bearings) necessary energy and maintenance costs. prevent slurry pump breakdowns and some of the energy that is not being A carefully planned and implemented reduce unplanned downtime that results transferred from the shaft to the fluid is optimization program can help alleviate in a loss of production. wasted. Of this wasted energy, some is these unnecessary costs. The point at which the highest pro- lost by internal recirculation within the Generally speaking, optimization portion of energy from the shaft of a pump and some as heat or vibration, or leads to reductions in energy consump- pump is transferred to the fluid being any combination of them. These are ero-

44 www.coalage.com May 2012 slurry pumps continued sive forces, and so the relationship excessive consumption of both energy and after alignment for the 12 pumps between reliability and energy efficiency and spare parts. demonstrated an average of 8% energy is clear—as more energy is wasted, ero- An SKF condition monitoring pro- savings (maximum of 20% in some cases) sive forces increase in intensity, so relia- gram with Microlog Analyzer showed or approximately 180 MWh/year, along bility is reduced. that the high vibration levels were clearly with reduced vibration levels and due to misalignment. Using the SKF increased reliability. Energy Savings with Alignment TKSA 40 system technicians corrected In addition to higher maintenance Optimization in Pumps the misalignment to help improve the costs, the costs of unreliability due to A plant recently experienced high vibra- operation of the electric motors. forced shut downs can be high. The costs tion levels on 12 pumps, resulting in Measuring energy consumption before of unplanned shutdowns vary, and in many cases are difficult to quantify. The SKF Energy Monitoring Service— Pump Systems is designed to help pump operators track efficiency, as well as actual operating efficiency relative to BEP. Periodic measurements of pressure, flow and power for each pump being tracked provide the data needed for the analysis, which is conducted using SKF @ptitude software. This is based on the company’s Operator Driven Reliability concept and provides plant operators with the information they need to establish the optimization opportunities available within their pump systems. In addition, it can be incorporated into any condition monitoring program. SKF recommends that condition monitoring programs be adapted to include this data because condition monitoring alone does not provide all of the information needed to assess the health of a pump: energy efficiency is a key component of the information needed. Pump system optimization provides real opportunities for mine operators to improve reliability and to reduce costs. There are many tools and training cours- es available to help provide the knowledge needed to implement a program to realize these opportunities. Where investment is needed to capture the benefit, the full array of cost savings should be estimated to provide a realistic return for that investment. Given that energy costs are by far the largest component of the life cycle costs of owning a pump, plant operators owe it to themselves to assure the highest level of pump optimization attainable. By incorporating the right tools and services into their condition monitoring programs, plant operators can go a long way toward maximizing the energy efficiency of their pump operations.

46 www.coalage.com May 2012 slurry pumps continued

MDX Technology Cuts Pump TCO by Millions

GIW Industries, a leader in the design, The mine relies extensively on slurry largest cyclone-feed pump in the world. manufacture and application of heavy pipelines to transport copper ore. But the However, working with GIW had advan- duty, centrifugal slurry pumps, hard rock slurry is brutal on pumps and tages for the company. Because GIW announced that its installation of MDX equipment. Wear parts suffer under the operates its own foundry, it can pro- pump technology at a major copper mine constant abrasion of the ore, and most duce parts cost- and time-effectively — in Chile has resulted in a dramatic reduc- competitor pumps require frequent even a pump as large as this one. The tion of total cost of ownership (TCO) for maintenance and replacements. The new GIW MDX pump, with an 84-inch those pump applications—amounting to company had GIW installations for other impeller and weighing 100,000 lb, millions of dollars in savings for the min- applications and realized it was seeing replaced the 150,000-lb competitor ing company. greatly improved wear life with those pump, providing a lighter, more Elias Aho, global sales and projects pumps. The mine decided that replacing durable pump that runs on significantly manager for GIW, said that a sulfide con- its lower-performing pumps with GIW less energy. centrator, owned by BHP Billiton, reports MDX technology was the right move. The new MDX pump has already increased revenue of $8 million due to When the pump stops, the mill stops. surpassed the mine’s goal of doubling productivity increases, with an addition- And the cost of that downtime is dramat- the wear life of the pump. GIW engi- al savings of $1 million in energy costs. ic at a large mining installation. For this neers are now working on a program of “TCO for slurry pumps includes not mine, every hour of downtime represent- continuous improvement, aiming to only the initial cost of the pump, but also ed $150,000. To replace a slurry pump, extend the pump’s wear life another factors such as wear life, annual cost of the mill has to be down for 10 hours. And 40% to 50%. By cutting its maintenance parts, labor, energy and downtime for with the previous pump, the mill engi- downtime in half, the mine has real- maintenance,” said Aho. All of these fac- neers were performing pump replace- ized an $8 million increase in revenue. tors are addressed by the advanced engi- ment eight times per year. In addition, it has reduced its neering, materials and technology But the application presented its energy cost by an additional $1 million provided by GIW MDX pumps. own challenges: This mine operates the annually.

May 2012 www.coalage.com 47 coaltrans

Coaltrans Miami Examines Exports Activity Shifting energy markets force more coal off-shore, but can the industry adjust fast enough?

BY LEE BUCHSBAUM, ASSOCIATE EDITOR AND PHOTOGRAPHER

The dominant theme for the 2012 Anywhere but Here tunities. When we think about the West, Coaltrans Conference in Miami was the Going forward, between China and India, we’re thinking Cherry Point and continued movement of coal away from coal demand may exceed more than 500 Millennium,” said Eaves, referring to the domestic markets and into the export million tons. And, while over the next 20 planned ports on the Columbia River sphere. Once again, the two big drivers for years, Asia will be served primarily by near Longview and on the Pacific coast these shifts are the potential markets in other producers, “beginning around near Bellingham, Wash. “It could be China and India as well as other develop- 2016 and 2017, the U.S. will really start three to five years but at the end of the ing nations. Though China, which has ramping up exports off the West Coast. day, we will really unlock the opportuni- tremendous coal reserves of its own, will New port capacity will allow western coal ty for Powder River Basin coal and west- continue to be served by Australia, to go over to the Asian market in large ern coal going into the international Indonesia and South Africa, as well as new numbers, perhaps 10 to 15 million tons markets. However, there will not be a mines coming online in Russia and of additional supply over the next five to whole lot of growth until we open up Mongolia, those Asian and foreign mar- 10 years,” said John Eaves, president and those ports,” said Eaves. kets are becoming crucial for the success COO, Arch Coal. Eaves also believes western bitumi- of U.S. coal suppliers. Observing that in 2011 the U.S. nous coal will have a much larger role to With low natural gas prices and dra- exported about 108 million tons—the play in the international markets as well. conian environmental regulations most since 1992—Eaves sees this as part Though Arch is now shipping limited squeezing domestic coal markets, it is of a longer-term trend. While Arch has an amounts through Long Beach, Calif., the now clear that the entire coal industry established position on the East Coast company’s 38% equity stake in the will have to adjust to a new economic through an ownership stake in the DTA Millennium Bulk Terminals and Arch’s paradigm. In this new world, railroads Terminal in Hampton Roads, Va., and agreement with Ridley Terminal in will be focusing on moving coal not from now along the Gulf Coast, in the near- Prince Rupert, B.C., will allow increasing a particular production region to one of term as a series of large new western amounts of PRB and western bituminous hundreds of power plants, but from coal ports open up, export tonnage will to reach larger markets. “During this field to tidewater. How successful a pro- become much higher. “We’re forecasting time, the U.S. will grow from being a ducer is at gaining efficiencies of scale that by 2015-2016, the U.S. will have the swing supplier to being a base supplier of through high volume long-haul moves capacity to export roughly 250 million high quality coal into the international from mine to port may be the key to suc- tons. Right now, every port operator in market for years to come,” said Eaves. cess. Or, the recipe for failure. the west is looking at expansion oppor- Bob Pusateri, executive vice president-energy sales and transportation, U.S. Coal Exports CONSOL Energy, echoed much of what Eaves discussed confidently discussing the future of metallurgical and pulver- ized coal injection (PCI) blends. While the future of these coals overseas is bright, little will be able to reverse the decline of central Appalachian production and the displacements caused by low natural gas prices. “No one knows for sure how many tons have been dis- placed by natural gas, roughly 40 million tons or more by our calculations. But it’s becoming clear that nearly every plant that has the ability to burn gas has or is shifting over to it now,” Pusateri said. For producers like CONSOL Energy that are able to sell into the lucrative coal export markets, a robust future awaits. “Last year was a very good year for exports and CONSOL Energy enjoyed a

48 www.coalage.com May 2012 coaltrans continued record year. Exports will continue to be a NS Corridor Development major part of the U.S. coal market for the rest of the decade,” Pusateri said. Though most industry observers are familiar with the Chinese and Indian growth stories, he also mentioned that CONSOL Energy is looking at much larger market base. “We’re also talking about the coal fired power plants in Turkey, Chile, Vietnam and Indonesia, and beyond. Coal will continue to provide a means of energy for the whole world,” said Pusateri. However, China has developed into a huge player in the international met coal trade and “we don’t think there’s any reason to believe this will change. China is built on steel.” The blend of Pittsburgh No. 8 coal that CONSOL Energy produces has historically been a metallurgical stalwart. “A lot of people refer to it as crossover met coal. But it is responsible for the growth of America’s great steel industry,” Pusateri said. In the U.S., metallurgical demand continues to be driven by domestic auto For Western Rail are Exports a Dream? production and sales. Following a rough 2008-2009, “auto sales were very strong in November and December of 2011. In fact it was the best December since 2007,” Pusateri said. And while he hopes the U.S. economy’s resurgence is right around the corner, like most coal operators, CONSOL Energy is betting that “exports are a long- term story. And, to that end, it is expanding to serve those markets,” Pusateri said. CAPP Production Diminishes As markets change and Central Appalachia (CAPP) goes into decline, where will the new coal growth come from? That was the subject of venerable analyst John Hanou of Hanou Energy to another region. Pennsylvania anthra- is going to go, but I have no doubt that Consulting. The answer—in large part—is cite saw its peak around World War I. the demand is there. PRB production will the Illinois Basin. After World War II, it went into steep expand—but because of all the scrubbers “Historically, coal supply meets coal decline—just as CAPP product began to that are being built and the high demand demand. Even though production matu- flood the market. “Then, between 1985 for export, we’re seeing a resurgence in rity is reached after the peak supply for a and 1995, CAPP met its peak—now 20 to the Illinois Basin,” said Hanou. In 2010, particular region has passed, historically 30 years ago. Further west, though the over 107 million tons were produced out there continues to be increasing demand Illinois Basin has a tremendous reserve of the that region. Last year, that figure for the product. That, in turn, is mainly base, coal quality is poorer in general climbed to about 115 million. In 2012, determined by cost and certain uncon- than CAPP, with higher sulfur and lower we’ll see roughly 129 to 141 million tons trollable factors,” Hanou said. “In the Btu coals predominating,” said Hanou. of production from there. We’re still on a coal business, some basins will run out Though the Illinois Basin (ILB) has been tremendous upslope. And if the demand of their economic supply. But demand mined extensively for well over a century, is there, it can even expand beyond that.” keeps increasing, so we end up having a it has not yet reached that exhaustion Production from the Western Btu deficit. The supply in a particular peak. Bituminous fields in Colorado and Utah basin may be decreasing, but the Further west, the PRB has impacted could also increase, particularly because demand has to be met somewhere else.” the demand for both ILB and CAPP coal that coal is relatively high in Btus, and very Looking at the history of coal produc- because of the very low cost and very low low in sulfur. “It should do pretty well in tion in the U.S., as one region’s low cost sulfur production coming from that the export market. Production in Utah can reserves are exhausted, production shifts region. “I don’t know where the demand expand, there are enough reserves out

May 2012 www.coalage.com 49 coaltrans continued there and enough mines. They have had to handle traffic has remained strong,” So what happens to the network now? some infrastructure issues, and they can’t said Heller. They evolve. NS and CSX have both been expand as fast as say the Illinois basin, but “Way back in 2008, when we were realigning traditional routes to take more it still has potential,” Hanou said. And with talking about coal traffic growth, you ILB steam coal into areas previously new terminals coming on line, that coal would have heard about the 70 to 100 served by CAPP products. However, can be more economically shipped in new coal-fired power plants on the draw- much of the new capacity has come in large quantities. ing boards along with new coal-to-liq- areas—much of which is on CSX—in The real competition to the expanding uids, coal-to-gas, and coal to everything CAPP, because of a decline in market Illinois Basin coal is going to come from plants. That is a world we are not cur- share. “But when you consider that this the Pittsburgh No. 8 seam. In 2011, pro- rently in or contemplating. It is perma- is a relatively small group of lines that ducers mined more than 80 million tons of nently dead. The combination of low previously provided much of the coal to Pittsburgh No. 8 and a lot of new produc- economic growth, low natural gas prices, the steam and export market, now that tion is coming online. “CONSOL Energy, and very stringent environmental regula- capacity has freed up other coal spots for Murray Energy, Alpha Natural Resources tions makes it pretty grim for the expan- the export market,” said Heller. and Alliance Resource Partners all have sion of new coal projects,” said Heller. But as one reviews railroad earnings expansion plans. If they all work out like “That paradigm will not change until reports, it reveals that they have found a they want to, Pittsburgh No. 8 production something in terms of real carbon cap- way to recoup what would otherwise be could easily grow in the next five years or ture and sequestration gets put in place. tremendous losses. “For NS, there’s vir- so by 30, 40, or maybe 50 million tons,” So all of the growth in coal traffic will tually no increase in coal traffic, but yet said Hanou. have to come from exports.” there’s been a 26% increase in revenue. Most of this new production will come The problem is that the U.S. rail net- This reflects the growth in export traffic. from highly efficient longwall mines work, outside of central and parts of This traffic is extremely profitable. Which extracting out of virgin reserves. This is northern Appalachia, was not built to in turn means there will be an increased particularly true in the ILB. “What’s take coal to tidewater. Instead, in the Wall Street focus on and anticipation planned by these companies is 190 million post-World War II era, the rail infrastruc- about eastern carriers handling more tons of production. That’s not going to ture has been reconfigured to haul steam export coal,” said Heller. happen. I don’t think the market can stand coal from mines to power plants. “If you Focusing on a handful of corridors is that. However, 45% to 50% of that expan- look at the routes over which steam coal a challenge. There are 105 domestic utili- sion, about 87 million tons, has already moves in the U.S, they’re pretty spread ty power plants that CSX serves and 81 been capitalized. So you figure another 40 out,” said Heller. Only CAPP coal enjoys domestic industrial plants. Conversely, million tons is going to be mined either a straight shot to Norfolk or Hamptons in 2011 there were only five export loca- way,” said Hanou. Road export facilities in Virignia. To a tions. “They’ve had to reposition loco- “As a result of all the new, low cost pro- lesser extent, Alabama coal can easily be motives and cars. It also means that the duction, CAPP will not recover going for- shipped to the Gulf as can a lot of Illinois traffic is obviously spread over a smaller ward, but it’s not going to go away either. Basin coal. But the reality is very differ- section of the system which means con- However, it will never be the basin that it ent for western Bituminous and PRB gestion problems can arise and they used to,” said Hanou. coal, and, to a great degree, Northern have. But these have actually helped Appalachia. While capacity has appeared their collective bottom lines. I know that New Rail Corridors & Strategies in the rail network, that capacity is differ- if I were a western railroad, I too would With all the changing and shifting pro- ent in location than the export routes.” be focusing real hard on exports and cre- duction and markets, what is required of the rail industry to keep U.S. coal mov- Bulk Carrier Fleet Supply Growth: ing? What sort of infrastructure and logis- Annual Average Percentage Change tics will need to be created to keep the new production flowing to the export markets? Jamie Heller, president, Hellerworx, a rail consultancy group, tried to answer those questions. No single commodity is more important to the railroad industry than coal. 44% of all tonnage moved by the railroads in 2010 was coal and it generally accounts for one quarter of the industry’s revenue. Even with the downturn, the railroads are still moving tremendous tonnage. “Our railroads are in really good shape. Remarkably during the recession, they continued to invest in infrastructure and facility expansion, although not necessarily in the coal area. Because of that, the railroads’ capacity

50 www.coalage.com May 2012 coaltrans continued ating export opportunities, and that’s that if you have cargo today from ‘I’ll take the delivery in 2011 rather than what BNSF has been doing,” said Heller. Australia to Europe, the ship owner December of 2010.’ While scrapping is Whichever way the markets settle, would often pay you to haul it,” he said. on the increase, the game is high stakes coal is going to continue to dominate As shipping patterns change, older poker. A lot of what should never have railroad profits. But this may not take the vessels are getting scrapped at higher been built was. And there are ships still form of the kind of rapid growth Wall rates as newer, larger, more efficient car- being built, and still being financed and Street wants. The railroads have never go ships come into service. At the same supported for a market that no longer been particularly interested in cutting time, shipping companies are delaying exists. Things are pretty miserable for rates anywhere, at anytime. But when the production of new vessels since they many ship owners. Some are getting one considers the domestic utility pic- are having a tough time maximizing rather desperate. My advice: Watch your ture, export growth is becoming much existing inventories. “Owners are saying back!” Masters warned. more important to the industry. “However, railroads competing with railroads is really something Wall Street doesn’t appreciate. So you’re looking at pushing traffic by cutting prices. I think that is going to be a while. The railroads have been pretty good at shaking rail rates to meet what they need to in order to match profitability,” said Heller.

Once You Get to Tidewater, What Happens Next? Getting that coal to market, however, is going to be a bit tricky, said Robin Masters, vice president of shipping at Simpson Spence and Young in New York. Faced with a glut of new ships entering the market and virtually no back haul for them returning from China and India, “it’s quite a dangerous time for one side of the coin and for those who are actually aboard ships. For those of you who charter vessels, forward freight agreements (FFA) will be challenging and, for ship owners, expectations are meager. Today most ships are trading at low operating costs,” Masters said. Predicting a “bumpy ride ahead,” for both ship owners and those who charter vessels, Masters warned that for many routes, ships may not be available. “If you’re looking at freight when you had a fair chance of picking up a vessel in the Gulf or the Caribbean, these vessels may not be available today. The major long- haul trade route is actually from Brazil to China. There was a time when freight was counted coming from Rotterdam. Today there’s not enough ships in Rotterdam. That count base is dead and when somebody prices that freight, it’s priced in the ship, in China,” said Masters, lamenting that the traditional ways of pricing ships and freight rates that have changed drastically following the economic crash of 2008 and the rise of China and other Asian markets. Currently many ships are going all the way past South Africa, to Brazil, and back without stopping. “In fact, it’s so bad,

May 2012 www.coalage.com 51 operating ideas Lubrication Plans Pay Dividends

BY STEVE FISCOR, EDITOR-IN-CHIEF

What most miners know is that a machine cannot be adequately the same type of chemical make-up that would be found in an lubricated unless the maintenance crew understands the equip- 80W-90 gear oil for an automobile. The duty cycle for an elec- ment and the environment in which it operates. That’s a position tric shovel does not necessarily relate to that of a car. with which Bel-Ray Lubricants identifies. Bel-Ray has been actively Bel-Ray believes lubricants should be developed specifically involved in mining for 45 years and it has studied each piece of for mining applications. One of the ways it is showing its level of equipment and the environment in which it operates before it tried commitment is through the Total Lube Partnership (TLP). “We to develop a lubricant for the application, explained Don Howard, are committed to providing, not only the best lubricants that can R&D Manager, Bel-Ray Lubricants. “We study the application and be formulated for these machines, but also the services required learn everything we can about it,” Howard said. “Then we chose the to properly maintain them,” Howard said. “As a company, we key factors or problems and address them individually. We develop assume responsibility for providing high-quality lubricants that a basic lubricant that meets all of the requirements whether its OEM are consistent with respect to thickness and viscosity from batch specifications or an industry standard, and then we add to that to batch. Then we apply them to the machine.” product to accommodate the severity of the application as far as The company also does some “free” consulting services for load, speed and operating environment.” miners. “We analyze components and centralize lubricating Many mines have learned the hard way that a general pur- systems,” Howard said. “We look at performance and con- pose gear oil or grease cannot be used for mining machinery. It sumption rates. The object is to maintain the optimum level of will not perform well. General purpose industrial gear oil uses lubricant consumption that provides the right amount of lubri- Oil Change: New Heavy-duty Diesel Lube Spec Due in 2016 When it comes to diesel technology, nothing ment of the new HD oil category. Although many performance characteristics will be stands still for long. Engine manufacturers have carried over from CJ-4, the principal objectives of PC-11, according to Shell experts, been busy for most of the past decade, for exam- are to provide higher performance in several areas, including: ple, planning, designing and testing new engine • Oxidation (thermal) stability; platforms and systems capable of meeting ever- • Aeration protection; tighter regulatory standards for lower emissions • Shear stability; as well as customer demands for higher reliabil- • Compatibility with biodiesel blends; and ity, economy and power. • Piston/liner scuffing and adhesive-wear prevention. The pace has been a bit slower lately for However, any new oil category also must be capable of meeting other diesel engine lubrication oils, however. The cur- demands, such as better overall fuel economy and decreased greenhouse gas rent performance category for heavy-duty diesel emissions—both of which generally require lower-viscosity oils. And, PC-11 oils engine oils, known as CJ-4, went commercial also must be backward-compatible with CJ-4 performance standards, which were more than five years ago. Over that period, diesel designed to apply to engines meeting emissions-compliance standards in effect technology has continued to evolve, driven by from 2007. design improvements that include increases in engine power density, combustion Shell believes it’s entirely possible for lower-viscosity oils to provide adequate pressures, fuel injection pressures, oil temperatures, and expanded use of wear- engine protection. It cites tests of its Rotella T5 10W-30 oil versus CJ-4 15W-40 oils resistant materials in engine components, to name just a few. that have shown equal or better engine wear protection results from the lighter oil The last seven heavy-duty oil categories to be developed—API CE, CF-4, CH- over the heavier product. “Thin [lower viscosity] oil is the oil of the future,” said Dan 4, CL-4, CL-4 Plus and CJ-4—were developed about three years apart starting in Arcy, global OEM technical manager, Shell. the late 1980s, a pace that serves to highlight the lag between introduction of CJ- Even so, oil suppliers and engine builders are concerned that a single PC-11 4 and the likelihood that when a new heavy-duty oil category is finally brought to product may not have the ability to provide satisfactory protection over the wide range commercial status in the future, CJ-4 will probably have been in effect for at least of engine applications it will encounter. Thus it’s likely, explained Arcy, that the new a decade. category will be split into two subcategories: one that preserves historical heavy-duty Citing concerns about the changes in engine technology, the age of the current oil criteria and one that provides fuel efficiency benefits while maintaining durability. category—certain engine tests for CJ-4 oils are becoming obsolete, for example— This will require engine-oil suppliers to develop two separate product lines to meet and the ability of CJ-4 oils to protect late-model engines, the Engine Manufacturers category performance specifications. Association (EMA) in June 2011 sent a formal request to the American Petroleum At this time, noted Arcy, the actual performance targets are still not entirely clear Institute (API) for development of a new performance category for HD oils, and API and defined, and it will be a “definite challenge” to have these targets defined and subsequently gave the green light to the project, which calls for the new category validated in time to meet the PC-11 release timetable. Work on defining the new cat- (PC-11) to be ready for commercial release in January 2016. egory began in December 2011, conducted by a development team comprising three In February, Shell Lubricants invited a group of trade-press editors to a briefing representatives each from API, EMA and the Truck Manufacturers Association and the held in Park City, Utah, to explain some of the major issues related to the develop- American Chemistry Council.

52 www.coalage.com May 2012 operating ideas continued cation economically. We look at root failure analysis. The TLP twice as viscous as the mineral-oil-based ISO 150. The operat- is our effort to become totally involved in the lubrication ing temp was within 2°, our power loss was within 8%, but our aspects of our customer’s machinery.” viscosity at operating temperature was 97% higher, meaning All of the mines expect lube suppliers to provide a quality that you can use a higher viscosity synthetic product, thicken product that will work. Some mine operators want the whole the lubricating film between the machine components and not range of services, from component inspection to oil and grease significantly increase the operating temperature and the power analysis, while others just want the product, Howard explained. loss.” Once the mines grasp this concept, they will realize the Acknowledging that some larger mines have brought used-oil true benefits of synthetics. analysis in house, there are many more that could still use the services of a third party provider. Used-oil analysis is one of the ways to predict an impending component failure. Lubricant Advisor While unexpected, catastrophic failures are rare in the min- The Lubricant Advisor on the Bel-Ray website is a neat tool that provides guide- ing business, bearing and gears do eventually wear out. “When lines for heavy equipment. The company started with a similar system for its a failure does occur, we will send a team of people out to the Power Sports division, which has hundreds of motorcycle and all-terrain vehicle site,” Howard said. “Most of the time we are looking at gear or applications, and then expanded it to include mining machinery. bearing failures and we have people who are very familiar with root cause failure analysis of gear systems and the different modes of wear. We can usually get a good idea of how and why a component failed, the mode of failure, and submit a complete report to the mine with our findings and recommend corrective actions.” Bel-Ray will also send independent experts into situations where the customer wants an independent verification.

The Benefits of Synthetics Howard has only been working in this area for 30 years, and over the last 10 to 15 years, he has noticed that most lube suppliers have moved away from dangerous chemicals and toward less hazardous finished products as far as toxicity and flash points. He believes that trend will continue. “A lot of what we do as lubricant formulators, however, is really driven by what the OEMs are doing with their equipment,” Howard said. Bel-Ray works with the OEMs and they occasionally give hints at what’s happening as far as machine design, Howard explained. “We will start formulating lubricants for increased loads and speeds,” Howard said. “Of course, everything these days is a little under-designed as far as handling load and operating at much higher speeds, which increases the load.” Also over the last few years, the use of biodegradable products has increased. Howard noted they are fairly expensive, usually two or three times the cost of a standard industrial lubricant. “There is no regulatory push to purchase a product that is three times as expensive,” Howard said. “The mines decide to use the product because they are operating in envi- ronmentally sensitive areas.” Over the next several years, Howard believes the industry will use more synthetic products for gear oils and open gear lubricants. This increase use of synthetics will come about as miners begin to understand the benefits of these products. “They will soon realize that you pay more, but they can be used twice or three times as long because they are highly filterable and extremely stable,” Howard said. In the Bel-Ray labs, Howard and his team are currently performing studies on the benefits of synthetics. “We have already learned quite a bit,” Howard said. “Because of the viscosity- temperature profile of these synthetics, we were able to take an ISO 150 gear oil and run it in a gear dynamometer and develop an operating temperature (not heat input) and calculate viscosity at operating temperature and power loss through our gear system. Once we acquired the data on a mineral-oil-based ISO 150, we then ran the same test on a synthetic oil, more than

May 2012 www.coalage.com 53 suppliers news

Metso to supply Tampa Electric with Two Bucketwheel Stacker Reclaimers

National Institute for Occupational Safety and Health (NIOSH)/MSHA study to evaluate the oxygen starter system on the SR-100 Self-Contained Self-Rescuer (SCSR), in which SR- 100 oxygen starters failed to operate in five out of 500 units tested. MSHA and NIOSH agree that action is needed to assure the safety and health of miners, and that the SR-100 SCSR must be phased out of use in a timely and orderly manner. In addition, NIOSH has determined the manual start procedure for the SR-100 should only be used as a last resort. The manufacturer’s manual start procedure (a.k.a. the Cold Start procedure), is more difficult to activate and it may take more time for the SR-100 SCSR to generate sufficient oxygen to allow for a rapid escape. MSHA wants to assure that miners Metso’s bucketwheel stacker reclaimer in operation. are trained to know what to do if they have a problem starting their SR-100 SCSR. For more information, go to: Metso will supply two identical bucketwheel stacker reclaimers http://www.msha.gov/regs/complian/PIB/2012/pib12-09.asp. to Tampa Electric Co.’s Big Bend Station, Apollo Beach, Fla. The Big Bend Station is situated on Tampa Bay in Southeastern StrataCrete Seal Receives MSHA Approval Hillsborough County. These two new machines will replace Strata Worldwide’s new 120 psi Reinforced StrataCrete Seal has been existing equipment that has been in operation for more than 40 approved by the Mine Safety and Health Administration (MSHA). years. Total order value is €11.9 million ($2.5 million). The new seal is an alternative to other 120 psi seals with improved According to the new contract, Metso will design, furnish, design features and easy installation. A rebar lattice is constructed manufacturer, shop test, inspect, package, store and handle the then coated and filled with either a high-strength gunite or a propri- two identical traveling bucketwheel stacker reclaimers prior to etary concrete mix that is pumped from the surface. arriving on site. All necessary equipment, accessories, controls The 120 psi seal is designed for openings up to 12-ft high and 40- and components will be provided for complete operation. ft wide with a seal thickness from 31- to 48-inches thick. The thick- Metso is replacing its machines that have been in service for ness is determined by the dimensions of the proposed seal location. 40 years. “We have a very good relationship with TECO starting The StrataCrete seal is specially designed to fit into areas that have from the parts and services Metso has provided over the years. limited space, such as in front of existing seals. The MSHA approval This order is proof that when you have your parts, service and number is 120M-14.0. capital equipment groups working together with the customer and for the benefit of the customer, great things can happen,” XHD Slurry Pump Wins Innovation Award said Mitch Sowards, sales manager, Metso. An ITT Goulds Pumps product serving the mining industry took top The first machine (North) is scheduled for commissioning honors at this year’s Pump Industry Awards, presented by the in May 2013. The second (South) machine is respectively British Pump Manufacturers’ Association. The XHD Extra Heavy scheduled for commissioning in the fourth quarter of 2013. Duty Lined Slurry Pump was chosen from among eight finalists as Stacking and reclaiming capacities are designed to handle the “most innovative pump, pumping system or other pump relat- 4,400 metric tons per hour (mt/h) on each of the two identical ed product introduced onto the market within the last 12 months, bucketwheel stacker reclaimers. The reclaim capacity can be a with effectiveness being demonstrated via application details.” variable of 1,100 to 4,400 mt/h depending on the current “The XHD pump’s innovative features are generating great requirements needed. These machines will be used by TECO interest in the mining and minerals market because they were for stacking and reclaiming coal and petcoke. specially designed to maximize uptime—and therefore value— for our customers,” said Buddy Morris, global product manag- MSHA Announces Phase-out Plan er, ITT Goulds Pumps. for CSE SR-100 SCSRs Announced last November, the XHD pump is designed to In a Program Information Bulletin (PIB No. P12-09), the Mine allow mines and related operations to move heavy slurries with Safety and Health Administration (MSHA) alerted mine opera- improved reliability at lower operating cost. It can be main- tors, independent contractors, MSHA personnel and miners’ tained even while running, and requires less downtime for ser- representatives to begin phasing out the use of the CSE SR-100 vice procedures with parts that are more accessible and SCSRs. The phase-out is based on the results of a recent adjustable than in other slurry pumps, according to ITT Goulds.

54 www.coalage.com May 2012 suppliers news continued

Michelin to Build New Earthmover Tire Plant “With the acquisition of Gemcom, coupled with our 3D in South Carolina Experience platform capabilities, our objective is to model and Michelin North America will again expand its operations in simulate our planet, improving predictability, efficiency, safety South Carolina. The company is breaking ground on a new and sustainability within the natural resources industry and Earthmover tire manufacturing plant in Anderson County, S.C. beyond,” said Bernard Charlès, president and CEO, Dassault The company is also expanding its existing Earthmover tire Systèmes. “To support this ambitious goal, we have created a facility in Lexington, S.C. The two projects represent a $750 new brand, Geovia. Raw material provisioning and long term million investment. This expanded operation at Lexington will resource availability is a major concern for society. This begin production in October. announcement is a significant step toward fulfilling our purpose “Michelin intends to maintain and strengthen its leadership of providing 3-D experiences for imagining sustainable innova- in all its specialty businesses, especially Earthmover radial tions to harmonize products, nature and life.” tires,” said Jean-Dominique Senard, managing general partner, Today’s mining industry, the primary user of Gemcom’s soft- Michelin. “The market for Earthmover tires grew by more than ware, is growing quickly. There are more than 5,500 operating 20% between 2009 and 2011. This new facility will help us meet mines worldwide and approximately 15,000 mining projects. The sustained demand while also attaining our growth objectives associated mining software market is experiencing strong growth, for 2015.” with third-party analysts estimating a double digit trend for the The new Earthmover tire plant will be adjacent to Michelin’s foreseeable future. existing rubber processing plant in Starr, S.C., and will be the “This acquisition will clearly benefit Gemcom’s customer third Michelin plant in Anderson County. The company also base, bringing global support and enterprise collaboration. operates a 2.5-million square foot rubber processing plant, the Advanced technologies in 3-D modeling and simulation will not largest in the world, in Sandy Springs. only enable engineers and geologists to model and visualize resources but also improve sustainable mine productivity,” said Loesche Acquires More Combustion Technology Rick Moignard, president and CEO, Gemcom. “We believe that Loesche ThermoProzess GmbH has taken over the specialized with Dassault Systèmes’ support we will be able to address glob- department “Combustion Technology” of UCON AG al issues for our customers as a real partner. None of our com- Containersysteme KG. For more than 60 years, this division of petitors can match that in this industry.” Moignard will become UCON AG Containersysteme KG has been well-known as the CEO of the newly created Geovia brand, after completion of Küppersbusch Fachbereich Wärmetechnik. The company the Gemcom acquisition. developed, designed and delivered a large variety of industrial combustion systems. Loesche ThermoProzess GmbH is a subsidiary of Loesche GmbH. Loesche specializes in vertical roller grinding mills, which are used for cement raw material, cement, coals, minerals, ores and enhanced products. Acquiring thermo process technologi- cal solutions will expand the Loesche portfolio of services to cover industrial burners and hot gas generators.

From left to right: Günther Balgar, operational manager, Loesche ThermoProzess GmbH; Matthias Authenrieth, managing director, Loesche ThermoProzess GmbH; Dr. Thomas Loesche, managing director, Loesche GmbH; and Dr. Joachim Kirchmann, managing director, Loesche GmbH.

Dassault to Acquire Gemcom Dassault Systèmes recently announced its intent to acquire geo- logical modeling and simulation company Gemcom Software International for approximately $360 million. Privately-held Gemcom is a world leader in mining industry software solutions, headquartered in Vancouver.

May 2012 www.coalage.com 55 product news

Hitachi Unleashes the EX5600-6

For the undercarriage and hydraulic cylinder, parts common to the original EX5500-6 are used. The cab remains the same—roomy and comfortable with an air suspension seat, low-effort short- throw levers with electric fly-by-wire, and support for diagnosing the failure portion via the monitoring function of the large size LCD monitor. Provisions for extreme operating conditions, from tropical to arctic, are still available. Also retained are the convenient 45˚ folding-type service ladder and Hitachi Global e-Service enables owners to download critical field data to their office for remote field monitoring. Complete Machine Information Center data can be downloaded in the field with a laptop. www.hitachimining.com

Coupling Maintenance Power Transmission Solutions introduced a repair and maintenance program for Hitachi’s EX5600-6 offers several new enhancements, including increased horsepower and increased bucket capacity. Kop-Flex couplings, gear spindles and uni- versal joints that can cut replacement cost The EX5600-6 is heavier than its prede- change in the pump drive gear ratio and turnaround time by half or more, cessor, has more engine horsepower, and change. according to the company. The program the backhoe configuration has increased The hydraulic oil cooler has been includes repair and maintenance, as well bucket capacity. The estimated produc- modified. A new core and additional fan as custom-tailored inventory manage- tivity increases are 17% for the short- speed provides better cooling capacity. ment that ensures shipment of replace- reach BH backhoe, and 12% for the front Inside the cab, LED lighting has been ment heavy-duty couplings and gear shovel arrangement. The cycle time has adopted for longer life and less heat gen- spindles in 12-24 hours. been improved as well, according to eration. An interface with major mine www.Kop-Flex.com Hitachi. management systems commonly used in The bucket capacity for the EX5600-6 many mine sites, including Wenco Fleet backhoe version has been increased from Management Systems, is optional. 29 m3 (38 cu yd) to 34 m3 (44.5 cu yd). The Although the Cummins engine model reach of the backhoe front attachment number remains the same, it is a different has been shortened and the engine out- engine configuration to provide the put boosted to achieve higher productivi- increased horsepower. There is now a ty with a cycle time equivalent to the spin-on type filter for pilot system for dash 5 version. The capacity for the front easier serviceability. shovel configuration has been increased An exclusive auto-leveling mechanism as well, from 27 m3 (35.5 cu yd) to 28 m3 increases crowding efficiency with one- (38 cu yd). lever control. Hitachi’s computer-aided Scheduling Software Hydraulic pump output has been Engine-Pump Control coaxes optimum Runge’s new XPAC 7.12 sports new 3-D increased by 10%, without degrading con- efficiency from the engine and hydraulic graphics and reporting features that ventional cycle time performance. This pumps. This innovative system senses open a new world of data visualization, results in the higher flow rate at the same load demand and controls the engine and along with significant user interface pressure. Higher flow rate means faster pump output for maximum operating upgrades. The upgrade includes a com- speed. Pump speed is increased through a efficiency. pletely new reporting engine and more

56 www.coalage.com May 2012 product news continued power and versatility for the graphics when compared to a 1,000-watt HPS fix- Vibratory Ripper has already reported generator. The enhanced Analysis ture. Backed by a five-year warranty, the significant productivity gains compared Reporting Module includes a pivot table ModCom is designed to provide years of to ripping without a vibratory unit. based analysis tool that draws data service with virtually no maintenance, www.rwfbron.com directly from the mining model, includ- even when installed in harsh environ- ing calendar databases, and user- ments. The ModCom is available in a Siemens Integrates Motors defined expressions. This is a significant 300W Hi (up to 25,000 lumens) or 150W Lo under Simotics benefit because the module understands (up to 12,500 lumens). Optical packages The Siemens Drive Technologies the nature of the data and manages include narrow, 10˚, 24˚ or 50˚ beam Division has combined all of its electric issues such as weight-averaged fields, angles. The fixture will rotate 360˚ on its motors into one product family under resources and activities automatically. aiming axis and can be locked in 5˚ incre- the brand name Simotics. This branding The updated graphics engine now asso- ments. www.phoenixproducts.com decision covers applications in almost all ciates 3-D solids with each database areas, and these motors are an essential record, instead of the more traditional Vibratory Ripper component of the division’s integrated extruded polygons. BRON introduced a new line of vibratory drive train. The range encompasses low- The spatial accuracy of the new solids rippers for dozers up to 1,200 hp, voltage induction motors, motors for opens up many more possibilities. Users designed to work in applications in com- motion control applications, DC motors, can now use a topographical surface or pacted soil, shale, limestone rock and and high-voltage motors. Mines and other triangulations to define the start- coal. The BRON 4000 Vibratory Ripper prep plants would be interested in the ing point of the schedule, by automati- serves multiple industries, including Simotics SD Severe Duty motors, which cally assigning appropriate pre-schedule mining, road construction and utility. have a rugged cast-iron frame and cover values. “XPAC 7.12 has a new look, but The vertical mounted shaker creates a the power range from 750 W to 315 kW. it’s not just a facelift,” said Alun Phillips, hammer chisel with the single blade, www.usa.siemens.com/simotics Runge’s product manager for scheduling making it easier to cut through hard solutions. “It delivers some fundamental compact conditions. The patent-pend- advances in scheduling software. The ing BRON 4000 Vibratory Ripper is a combination of accurate spatial data and direct pin-on attachment with engi- powerful 3-D geometry opens up some neered mounts for most makes and mod- tremendous opportunities and the new els of dozers up to 200,000 lb, including reporting tool cuts down hours of work the Cat D10T Dozer. Heavy built con- to just minutes.” struction of the BRON 4000 Vibratory Like a modern browser, XPAC 7.12 Ripper keeps the dozer balanced for rip- has a tabbed user interface, which gives ping material. All components are fabri- the user greater control of more data cated using high strength steel that Transportable Fuel Tank sets. It is optimized for multiple moni- stands up to abrasion for high wear resis- Transcube’s 10TCG transportable fuel tors and adjusts its behavior to make the tance, including the blade. The blade tank is DoT approved for road transporta- best use of any monitor configuration. uses existing Cat tooth and guard. The tion and UL 142 certified for safe diesel XPAC 7.12 also lets users personalize the first recipient of the BRON 4000 fuel storage. The double-walled tank pro- workspace. www.runge.com.au vides 110% secondary containment of the inner container’s total capacity to elimi- LED Floodlight nate the risk of spills and contamination. The ModCom Series is an instant-on, sur- Internally baffled to prevent the surge of face-mounted LED fixture designed to fuel during transport, the 10TCG has DoT replace high wattage HID floodlights. The LED luminaire delivers up to 25,000 lumens and offers a 70% energy savings

58 www.coalage.com May 2012 product news continued approval for transportation of diesel fuel, LTM 1250-6.1 and the 220-ton LTM 1200- coverage area and warranty of the compa- unlike traditional fuel tanks. This gives the 5.1. And in August 2011, ALL added a 600- ny’s popular Powerfoil X. It uses a new unit the versatility to be deployed to ton LTM 1500-8.1 all-terrain crane. The patented airfoil system—a system that remote locations while full of fuel as well 265-ton, 5-axle LTM 1220-5.2 is engineered combines patented airfoils and winglets as the ability to be removed from a site for maximum lifting performance. The total with patent-pending AirFence technology with fuel still inside. The Transcube weight of the crane is fully used to optimize to increase overall coverage by 28%. The 10TCG has a capacity of 264 gallons. load capacities. With a 44- to 197-ft tele- winglet improves airfoil effectiveness by www.transcube.us.com scopic boom extension and a 40- to 141-ft eliminating efficiency-robbing turbulence long folding fly-jib system, it sets the stan- at the tip, while the AirFence captures air All-terrain Cranes dard when it comes to lifting height and that would otherwise slip off the end of The ALL Family of Companies purchased boom length. The 110-ton LTM 1100-4.2 is a the airfoil. The 8- to 24-ft. diameter five Liebherr all-terrain mobile cranes: two top-capacity member of the 4-axle mobile Powerfoil X2.0 was developed by a team LTM 1220-5.2, two LTM 1100-4.2 and one crane class. The 38- to 197-ft telescopic of engineers in the Big Ass Fan Co.’s cus- LTM 1350-6.1 models. This follows an boom can be extended by lattice boom tom-built R&D facility. This thorough acquisition almost 12 months ago of two parts and a double 35- to 108-ft swing-away testing and a host of durability enhance- versatile new Liebherr models, the 300-ton jib. The 400-ton LTM 1350-6.1, the largest of ments led the company to offer a nonpro- this mid-range package, sets the bench- rated 15-year warranty on the new mark for the 6-axle crane class. It features a Powerfoil X2.0. 49- to 230-ft telescoping boom and 20- to www.BigAssFans.com 256-ft lattice jib. It was designed to provide high capacities at long extended telescopic boom lengths. www.allcrane.com

Industrial Fan Powerfoil X2.0, the new- est industrial fan from the Big Ass Fan Co., significantly increases the

May 2012 www.coalage.com 59

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ADVERTISING INDEX PAGE All Erection & Crane Rental Corp ...... 47 Haulage & Loading Call for Papers ...... 57 ASGCO ...... 59 J.H. Fletcher ...... 13 Atlas Copco ...... 9 Jennmar ...... IBC Baldor Electric ...... 37 L&H Industrial ...... 17 Blastcrete...... 51 Liebherr ...... 19 Brady Mining ...... IFC Longwall USA Call for Papers ...... 45 Bron ...... 55 McLanahan...... 21 Carlson Software ...... 39 Metso ...... BC Carmeuse Lime & Stone ...... 53 MINExpo 2012...... 43 Caterpillar...... 32-33 Minova ...... 23 Coal Handling & Storage ...... 24-25 New York Blower ...... 27 DSI ...... 35 Precision Pulley & Idler...... 29 Eickhoff ...... 7 Spraying Systems ...... 44 FLSmidth ...... 11 Weir Slurry Group ...... 3 Graco ...... 59 Xylem Dewatering Solutions ...... 15

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May 2012 www.coalage.com 63 legally speaking

Trending: Discrimination Complaints and Requests for Temporary Reinstatement Under the Mine Act

BY DONNA VETRANO PRYOR AND MARK N. SAVIT

On March 27, 2012, Assistant ment of a miner if she “finds that such complaint was not frivolously Secretary of Labor for Mine Safety brought.” 30 U.S.C. § 815(c)(2). This standard is among the lowest bur- and Health, Joe Main, spoke before dens of proof that courts allow and hearings on the issue are strictly the U.S. House of Representatives, limited. 29 C.F.R. § 2700.45(d) provides: Committee on Education and the Workforce regarding the results of a hearing on an application for temporary reinstatement is limit- MSHA’s accident investigation into ed to a determination as to whether the miner’s complaint was the April 5, 2010, explosion at the Upper Big Branch (UBB) mine in frivolously brought. The burden of proof shall be upon the West Virginia. In his statement, Main said: Secretary to establish that the complaint was not frivolously brought…. To reflect our commitment to worker voice, we are using all our available tools to protect miners from discrimination when they Because the Mine Act does not define “not frivolously brought,” make complaints about dangerous conditions, or exercise other courts have been left to define the standard on their own. Courts and rights provided to them under the Mine Act. The fear of losing a the Commission have equated the “not frivolously brought” standard job—even temporarily until a discrimination claim can be liti- contained in section 105(c)(2) of the Mine Act with the “reasonable gated—makes a huge impact on a breadwinner for a working cause to believe standard.” Jim Walter Resources, Inc. v. Federal Mine family, and can force a miner to choose the care of his or her fam- Safety and Health Review Commission, 920 F.2d 738, 747 (11th Cir. ily over other safety concerns. 1990). It has also been equated with “not insubstantial” and “reasonable cause to believe.” Id. This standard is an incredibly low hurdle for In the agency’s attempt to promote the use of this provision of the Act, the Secretary to meet. And though it is not impossible to successfully they have also stepped up the use of the authority under the Mine Act challenge a claim for temporary reinstatement, it is rarely done as the to request temporary reinstatement for miners who claim unlawful dis- standard weighs in such favor to the miner: charge “while [they] fully investigate the case.” In fact, temporary rein- In at least one recent case, even though MSHA had already made a statement carries on long after the case is fully investigated by MSHA finding of no discrimination on a miner’s overall complaint and and has been held by the Federal Mine Safety and Health Commission decided to not represent the miner in the discrimination action, the to run until the final Commission decision on the merits of the miner’s Secretary of Labor continued to represent the miner in the temporary underlying complaint. This essentially means that if MSHA makes an reinstatement hearing. That the agency would make a finding of no initial finding of no discrimination, yet the miner decides to pursue the discrimination and then provide free legal counsel to a miner in order discrimination case on his own (an option under the Act), the miner to obtain temporary reinstatement, flies in the face of logic. And of will continue to be paid his/her normal rate of pay until a final decision course, if a miner obtains temporary reinstatement even if MSHA is rendered by an Administrative Law Judge—obviously a very costly makes a finding of no discrimination, the miner has every incentive to proposition for an operator seeking to challenge a baseless discrimina- move forward with the case but has no reason to expidite the pro- tion claim. ceedings, regardless of merit, due to the windfall he/she is experienc- Indeed, the number of cases in which a temporary reinstatement is ing as a result of the temporary reinstatement. sought are on a dramatic increase. From October 2007 to September The temporary reinstatement process is obviously very costly to 2009, the Department of Labor pursued a total of nine temporary rein- operators—between litigating the matter in court and actually paying a statement cases. By comparison, from October 2009, to September miner to sit home until a claim is fully litigated. When seeing how 2011, the Department of Labor sought 48 temporary reinstatements, an strongly this process leans in favor of the miner, and how heavily the increase of more than 500%. In fact, Main boasts that “For all types of agency is promoting the use of this portion of the Act, an operator Mine Act discrimination cases during that time period, the number of should take great care to document all discipline and termination of cases that DoL pursued rose by over 100%.” employees. Also important to consider are the common circumstantial Section 105(c)(1) of the Mine Act provides in part: indicia of discriminatory intent considered by the courts: (1) the operator’s knowledge of the protected activity; (2) the operator’s hostility or No person shall discharge or in any other manner discrimi- animus toward the protected activity; (3) coincidence in time between nate against...or otherwise interfere with the exercise of the the protected activity and the adverse action; and (4) disparate treat- statutory rights of any miner...because such miner...has filed ment of the complainant (in other words, are all employees treated or made a complaint under or related to this Act, including a equally?). Taking these factors into account may help operators make complaint notifying the operator or the operator’s agent, or prudent decisions when making routine disciplinary decision, yet try- the representative of the miners...of an alleged danger or safety ing to avoid baseless discrimination claims. or health violation.... Pryor is an associate with Patton Boggs LLP. She can be reached at 303-894-6145 or at [email protected]. Savit is a partner in the 30 U.S.C. § 815(c)(1). Following the investigation of a miner’s allega- Denver office of Patton Boggs LLP. He can be reached at 303-894-6117 or tions of discrimination, the Secretary can seek temporary reinstate- at [email protected].

64 www.coalage.com May 2012