Canada-listed Lipari Energy (TSX:LIP), which has coal mine operations in eastern Kentucky, said in a brief March 22 statement that U.S. coal industry veteran Dan Geiger has resigned from the Board of Directors of Lipari, effective immediately.
Other than thanking Geiger for his service, Lipari didn’t say anything else about the resignation. Geiger has over 35 years of industry experience. From 2004 to 2010, he served as CEO, President and Chairman of Lexington Coal, which was a company set up to reclaim old mines and dispose of coal properties out of the Horizon Natural Resources bankruptcy case. Prior to that, he served as Vice-President of Engineering at James River Coal for 22 years.
Lipari mines, processes and sells thermal coal from mines located in southeastern Kentucky. The company leases the coal mineral rights to approximately 13,700 acres of land, the company said in a November 2011 financial report. Lipari began its mining operations when it purchased all the issued and outstanding common stock of B&W Resources Inc. in September 2008.
As of Sept. 30, 2011, the company’s mining complexes included four surface mines and one highwall mine. In addition, it has one preparation plant and one unit train loading facility served by the CSX Transportation railroad. As of May 31, 2010, Lipari controlled about 14.8 million tons of recoverable coal reserves, which it estimates equates to approximately 11 years of production at its expected rate of production for the next twelve months.
During the nine months ended Sept. 30, 2011, the company generated total revenues of approximately $65.4m on coal sales of 913,537 tons of coal, and it produced 890,253 tons of coal. The company said in the November report that it expected its annual production for 2011 to be about 1.3 million tons, with coal sales of around $92m. To date, the company’s revenues have resulted primarily from the sale of coal to electric utilities in the southeastern U.S.
The Lipari website shows that the CEO of the company is John Liperote, and the President is Richard Liperote, both veterans of the eastern Kentucky coal business.