Alden Resources seeks Kentucky coal project permit

Alden Resources LLC is pursuing a wastewater permit from the Kentucky Department for Environmental Protection to cover an additional reserve area being added to its Maple Creek #1 strip mine in Whitley County.

The DEP put the application, including a socioeconomic report written by the company and signed by company President Keith Smith, out for comment on April 24. This project would also be covered by amendment #1 to Kentucky Department for Natural Resources mine permit #918-0447.

The proposed project is located in Whitley County one mile east of the junction of KY HWY 779 with Maple Creek Road, said the report. “The surface area of the project is 91.85 acres, with an addition of 45.60 acres of surface area for this amendment. The auger area of the project is 7.60 acres, with 5.60 acres being redesignated to contour mine area in the Blue Gem seam and 1.0 acre of additional auger mining area for this amendment. Johnson Hollow is the receiving stream for the proposed four discharge points.”

Approximately 35 workers will remain employed exclusive from 56 indirect workers who will remain employed. About 130,000 tons of coal will be recovered from this proposed project with an assumed value of $92/ton.

The U.S. Mine Safety and Health Administration database shows Maple Creek No. 1 as a new mine that went into production in the third quarter of last year and produced 23,367 tons during the rest of 2011. Alden Resources has a total of three deep mines, five surface jobs and the Gatliff Tipple listed with MSHA, all in eastern Kentucky.

Alden Resources is controlled by Globe Specialty Metals, which said in its Feb. 8 Form 10-Q filing at the SEC that in July 2011, it purchased from NGPC Asset Holdings II LP, NGP Capital Resources Co. and other parties 100% of the membership interest of Alden Resources and Gatliff Services LLC, as well as certain royalty interests held by NCP Capital Resources.

“Alden is North America’s leading miner, processor and supplier of specialty metallurgical coal to the silicon and silicon-based alloy industries and also supplies thermal coal to the power industry,” said the Form 10-Q. “The acquisition was made in order to secure a stable, long-term and low-cost supply of specialty metallurgical coal, a key ingredient in the production of silicon metal and silicon-based alloys.”

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.