Alpha’s New Ridge Mining unit seeks Kentucky coal permit

New Ridge Mining is seeking a wastewater permit from the Kentucky Department for Environmental Protection on a mine project in Harlan County that would produce 30,000 tons of coal per month for 146 months, which is over 12 years.

The DEP put the application, including a July 2011 socioeconomic report written by the company, out for public comment on Feb. 23. This project would also be covered under Kentucky Department for Natural Resources mine permit No. 848‐0293.

The proposed operation is located in the central portion of Harlan County, within Little Creek watershed, near the town of Mary Helen. The operation is a surface contour mine with remining and auger/highwall mining. Approximately 30 people will be directly employed by this project.

“This operation is estimated to produce approximately 30,000 clean tons per month for 146 additional months,” said the socioeconomic report. “At a current average sales price of $60/ton, the total revenue generated from this operation is estimated to be $262.8 million. The severance tax rate for coal companies is approximately 4.5 percent and it is estimated that this project area will generate approximately $11,826,000 in severance taxes for the Commonwealth of Kentucky. The post‐mining land use will also increase the property values by improving accessibility and usable land after mining.”

There are no mines currently listed with the U.S. Mine Safety and Health Administration under New Ridge Mining. U.S. Office of Surface Mining records show that New Ridge Mining is a subsidiary of Sidney Coal, one of the operations that Alpha Natural Resources (NYSE:ANR) picked up in a June 2011 purchase of Massey Energy.

About Barry Cassell 20414 Articles
Barry Cassell is Chief Analyst for GenerationHub covering coal and emission controls issues, projects and policy. He has covered the coal and power generation industry for more than 24 years, beginning in November 2011 at GenerationHub and prior to that as editor of SNL Energy’s Coal Report. He was formerly with Coal Outlook for 15 years as the publication’s editor and contributing writer, and prior to that he was editor of Coal & Synfuels Technology and associate editor of The Energy Report. He has a bachelor’s degree from Central Michigan University.