A new coal producer with an eye on further expansion, VHGI Holdings (OTC.QB: VHGI), announced March 28 that subsidiary VHGI Coal has successfully tested its clean coal loadout system for delivery to Indianapolis Power & Light (IPL) and other customers.
The first shipment to IPL was made on March 25, the company noted. As part of a multi-year coal supply agreement with IPL, the Landree underground mine will ship 1 million tons per year to IPL.
One of the unique aspects of VHGI Coal’s Landree mine property in Indiana is the existence of an on-site rail delivery system, which allows the opportunity to deliver coal to customers in a more cost efficient and timely manner. The rail delivery system gives VHGI Coal an advantage over many competitors by allowing the Landree to expand its sale base far beyond the Midwest and potentially to overseas markets, the company noted.
Newly-hired Executive Vice President Ron Hutchcraft said: “This is an important milestone in our development as a company. This first shipment proves that our delivery system is now up and running, we can deliver our coal to IPL and other customers as promised in our agreements.”
VHGI Holdings is a diverse company with assets and interests focusing on opportunities within the precious metals, energy and mining markets. It bought the Landree mine recently as part of a buy of the Lily Group, founded by coal operator Paul “Rick” Risinger. The Landree mine, located in Greene County, is still listed with the U.S. Mine Safety and Health Administration under Lily Group. The mine was first registered with MSHA in April 2010.
IPL had reported to the Indiana Utility Regulatory Commission back in December that as of Jan. 1, 2012, a Solar Sources coal contract will have expired and a new contract will be in effect with the Lily Group. Solar Sources is a long-established Indiana producer run by coal operator Felson Bowman.