JUNE 2012 VOL. 117 NO. 6 FEATURE ARTICLES NEWS/4 SIGNAL PEAK/32 28 Panama Canal Expansion: The Future Brightens for Export Coal 32 Signal Peak Energy’s Bull Mountain Mine has Pulled it Together and is Pulling Ahead 45 High-tech Solutions Relieve Pressure on Mine Planners Accuracy, speedy data analysis and process integration form the foundation of effective planning systems 50 Nano Drying Technology A new approach for fine coal dewatering 60 Advancements in Technology Improve Workshop CONSOL TERMINAL/66 OPERATING IDEAS/72 Component Handling and Safety Purpose-built machines move large awkward components in confined spaces 66 As Exports Grow, CONSOL Energy’s Baltimore Marine Terminal Takes a More Central Role 72 Managing Environmental Compliance COAL IN THE NEWS 8 Century to add another longwall, upgrades prep plant 8 Alliance CEO offers a positive perspective 8 Coal miners, environmental activists clash at Kentucky hearings 10 Peabody Energy submits successful bid for coal reserves THIS ISSUE at North Antelope Rochelle mine 10 NMA says EPA’s proposed NSPS rule is unlawful, unprecedented and unwise This month, Coal Age profiles Signal Peak Energy’s Bull 12 Vectren cuts output Mountain mine. The first major underground coal mine to 16 Alpha makes significant changes to rock dusting policies be commissioned in Montana, it plans to become one of the 16 Addington loses bankruptcy fight safest, most productive longwall operations. On the cover, a view of the Bull Mountain longwall face; the canopies on 20 Colorado’s New Elk metallurgical mine lays off workers the shields have been extended to protect the miners from 20 NMA addresses permitting delays that obstruct investment, face sloughage. jobs and economy 22 Tenaska’s strategy backfires DEPARTMENTS 4 WORLD NEWS Editorial 8 Coal in the News 9 Vale sells Colombian coal assets 9 World News Xstrata, JX Nippon initiate pre-feasibility study 14 People in British Columbia 18 Dateline Washington 10 Chinese railway to link coal producers to sea outlet 20 Calendar Another Australian coal export record 22 Awards 12 Botswana coal destined for Asian markets 28 Transport Tips 72 Russia to export coal to China Operating Ideas 76 Suppliers News 80 Product News 85 Classified 88 Legally Speaking June 2012 www.coalage.com 1 company profile - paid advertisement Castrol Industrial While the cost of lubricants typi- cally represents less than 5% of the total expenditures, these products can impact on average more than 40% of the operational budgets affecting productivity and equipment maintenance schedules. Castrol con- tinues to develop products to help customers get the most from their machinery and minimize waste. Castrol is focused on mining and has been for 35 years, delivering lasting value along with our proven expertise in the industry. We pro- vide the mining industry with a full range of trusted products from gen- eral industrial to high performance. Castrol’s range of high performance mining lubricants provide reduced wear for critical components and meet the required OEM specifica- tions for equipment used in the Soon after opening his oil company in Castrol Industrial North America mining industry. 1899, Charles Wakefield introduced a Inc manufactures a broad range of Castrol has been in business for new lubricant that would revolutionize lubricants designed to withstand the over 100 years and we will continue transportation in the first half of the harshest conditions and most diffi- to be so for the next century. The twentieth century. In the 1950’s cult operations. Whether the need values of Castrol are passion, per- Wakefield introduced industrial lubri- is for gear oils, greases, wire rope formance, progress, and integrity, cants into the product offering. He lubricants, walking cam compounds which will continue to drive our called his new company Castrol. or hydraulic oils, we have the prod- industrial business to the benefit of Today Castrol Industrial has become a ucts to support your applications. our customers and employees. We high performance company with a strive to ensure that we are bringing global footprint, recognized for pro- the best of our past forward to the viding products and services that posi- benefit of our customers. tively impact productivity, quality and Castrol continuously works with costs in manufacturing operations. our mining customers to under- At Castrol, the product delivered stand their needs and deliver the to our customers represents the tip products required to exceed their of the iceberg. Our ability to expectations. Come discover why research and develop new solutions only Castrol Industrial has ‘The is based on a collection of technolo- Technology Inside’. gy platforms that are focused on delivering a quick and effective For more information, contact us at: response to the specific needs of Castrol Industrial North America Inc customers, while making full use of 150 West Warrenville Rd. 603-1E the knowledge and support of a tru- Naperville, IL 60563 ly global infrastructure that is 877-641-1600 focused on the future. We push boundaries today and create tomor- [email protected] row’s breakthroughs. castrol.com/industrial 2 www.coalage.com June 2012 editor’s note Romney Promises to Lift the Cloud of Uncertainty www.mining-media.com Mining Media International Editorial Office 11555 Central Parkway, Suite 401 ooking at the upcoming presidential election from a self- Jacksonville, Florida 32224 U.S.A. Lserving “coal only” standpoint, the industry has only one Phone: +1.904.721.2925 choice, vote for the Republican candidate, Mitt Romney. Fax: +1.904.721.2930 Would the coal industry flourish under Romney? It’s safe to Editor-In-Chief—Steve Fiscor, [email protected] say it will not improve under four more years of Obama. The Western Field Editor—Russ Carter, [email protected] coal industry, as it stands now, hamstrung by reckless envi- ronmental policies and playing defense, will only suffer fur- European Editor—Simon Walker, [email protected] ther setbacks and frustration. Power producers would Latin American Editor—Oscar Martinez, [email protected] BY STEVE FISCOR continue to struggle with an incoherent energy plan, while Associate Editor—Gina Tverdak-Slattery, [email protected] / EDITOR-IN-CHIEF demand declines as the economy languishes. Associate Editor & Photographer— In late May, Romney spoke to an audience of about 1,500 Lee Buchsbaum, [email protected] coal miners and their families in Craig, Colo. He explained that he didn’t share President Obama’s anti-coal agenda. “He’s going after energy,” Romney said. “He’s Graphic Designer—Austin St. Clair, [email protected] made it harder to get coal out of the ground. He has made it difficult to get natural gas out of the ground and he is making it harder to get oil out of the ground.” Vowing Mining Media International to jump-start the economy he said he would not forget the miners. A few days later Corporate Office 8751 East Hampden, Suite B1 he gave a speech in front of Solyndra’s headquarters in California. The Obama Denver, Colorado 80231 U.S.A. administration gave the now bankrupt green energy company more than $500 mil- Phone: +1.303.283.0640 lion in loan guarantees. The political grandstanding was well-orchestrated. Fax: +1.303.283.0641 Reviewing his energy policies might provide better insight as to what the President/Publisher—Peter Johnson, [email protected] coal industry can expect under Romney (See Mitt’s Energy Plan: www.mittrom- ney.com/issues/energy). A PDF pamphlet titled, Believe in America—Mitt Vice President of Sales & Marketing—John Bold, [email protected] Romney’s Plan for Jobs and Economic Growth, sheds some light on what his team U.S. & Canada Sales Manager—Victor Matteucci, [email protected] has in mind. In it, Romney acknowledges coal as an abundant fuel source, throw- Scandinavia, UK and European Sales Manager—Colm Barry, [email protected] ing out the oft-cited 200 years of reserves. He also points to the potential dam- German Sales Manager—Gerd Strasmann, [email protected] ages to the economy from Obama’s original cap-and-trade proposal. As Classified Advertising—Norm Rose, [email protected] governor, Romney initially backed cap-and-trade policy, but changed direction during the GOP primary. He explains how Obama found another path to imple- Show Manager—Tanna Holzer, [email protected] ment his policies, using new regulations from the Environmental Protection Ad Traffic Manager—Erica Freeman, [email protected] Agency (EPA) and declaring carbon dioxide (CO2) a pollutant. He offers a bar chart, titled the Green Jobs Myth, which shows graphically how two jobs were lost for every green job created. Romney promises to lift the cloud of regulatory uncertainty that businesses face today. He says the Clean Air Act, Clean Water Act, and other laws need to be overhauled. Can he do all of that? It might be possible, if the Republicans sweep Congress, but probably not by acting alone as president. The notion that he wants Coal Age, Volume 117, Issue 6, (ISSN 1040-7820) is published monthly by Mining Media Inc., 10 Sedgwick Drive, Englewood, Colorado 80113 (mining-media.com). to overhaul the laws and make them more practical speaks volumes as far as a Periodicals postage paid at Englewood, CO, and additional mailing offices. Canada more common sense approach. What readers have to remember, however, is that Post Publications Mail Agreement No. 40845540. Canada return address: Station A, PO the Supreme Court ruled that CO was a pollutant. If elected, he said he will push Box 54, Windsor ON N9A 6J5, Email: [email protected]. Current and back 2 issues and additional resources, including subscription request forms and an editorial legislation to overturn the Supreme Court ruling.