The Deane Mining LLC unit of Rhino Resource Partners LP (NYSE: RNO) is seeking a wastewater permit from the Kentucky Department for Environmental Protection that would allow for a continuation of mining at a coal operation located near Hall in Knott County.
“The proposed project is an underground and contour mining operation (KDNR Permit No. 867-5300 A5),” said a socioeconomic report on the project released by the DEP on April 12 as part of the public notice process for this permitting. “The project will be facilitating the removal of coal reserves from the Elkhorn No. 1, Elkhorn No. 2, and Elkhorn No. 3 coal seams.” KDNR is the Kentucky Department for Natural Resources, which issues mine permits.
This operation will provide for the continuation of 30 higher-wage jobs in the area. This proposed project does not add additional mining acreage to the mining plan; however, the additions proposed will facilitate the continued coal removal associated with this project (KDNR No. 867-5300). The continued recovery of the Elkhorn No. 1, Elkhorn No. 2, and Elkhorn No. 3 coal seams over the life of the project will produce over 45 million tons of coal, the report said. Additionally, 13,539 tons of coal will be recovered from the excavation of three proposed mine faceups.
“Deane Mining LLC proposes to add three faceup areas (totaling 3.3 acres), 6.8 acres of spoil storage and mine management area, 28.48 acres of mine management areas, 0.42 acres of pond access Road J, and two sediment ponds,” the report noted.
Deane Mining has three operations listed with the U.S. Mine Safety and Health Administration. They are the Love Branch and Access Energy deep mines, plus the Mill Creek prep plant, which was formerly owned by a unit of CONSOL Energy (NYSE: CNX).
Said Rhino about this operation in its March 15 annual Form 10-K report: “Our Deane mining complex is located in eastern Kentucky and produces steam coal from one company-operated underground mine and one contractor-operated underground mine. The infrastructure consists of a preparation plant utilizing heavy media circuitry capable of cleaning coarse and fine coal size fractions, as well as a unit train loadout facility with batch weighing equipment capable of loading in excess of 10,000 tons into railcars in approximately four hours. The facility has significant blending capabilities allowing the blending of raw coals with washed coals to meet a wide variety of customers’ needs. The Deane complex produced approximately 0.3 million tons of steam coal for the year ended December 31, 2011.”