Alliance’s Warrior Coal adds to Kentucky mining operations

The Warrior Coal LLC unit of Alliance Resource Partners LP (NASDAQ: ARLP) is pursuing a wastewater permit from the Kentucky Department for Environmental Protection on a big strip mine project in Hopkins County.

The DEP on May 24 put out for public comment a May 2 socioeconomic report on the project written by the company. This project, which will directly facilitate the employment of 400 people, is also covered by Kentucky Department for Natural Resources mine permit #854-0254. The site is located near Nebo, Providence and Madisonville in Hopkins County.

There is an estimated 40 million tons of remaining recoverable coal reserves within the permit boundary, said the socioeconomic report. The company estimated tax revenue for local government based on a spot coal sales price of this coal as of April of $52/ton.

Said Alliance about this operation in its Feb. 28 Form 10-K annual report: “Our subsidiary, Warrior Coal, LLC (‘Warrior’), operates an underground mining complex located near the city of Madisonville in Hopkins County, Kentucky. The Warrior complex was opened in 1985, and we acquired it in February 2003. Warrior utilizes continuous mining units employing room-and-pillar mining techniques to produce high-sulfur coal. Warrior completed construction of a new preparation plant in the first quarter of 2009, which has throughput capacity of 1,200 tons of raw coal per hour. Warrior’s production can be shipped via the CSX and PAL railroads and by truck on U.S. and state highways directly to customers or to various transloading facilities, including our Mt. Vernon transloading facility, for sale to customers capable of receiving barge deliveries.”

The Form 10-K added: “In 2011, Warrior acquired the Richland No. 9 Mine (‘Richland’), a one-unit mine located near the Warrior complex. Production from Richland, which will be processed through Warrior’s preparation plant, will begin in January 2012 and is expected to be exhausted in 2014.”

The U.S. Mine Safety and Health Administration database shows that the MSHA registration for Richland No. 9 was transferred in October 2011 to Warrior Coal from Pleasant View Mining Co. MSHA data shows the mine produced 99,450 tons of coal in the first quarter of this year, no coal in the third and fourth quarters of 2011, and 45,069 tons in the first and second quarters of 2011. U.S. Office of Surface Mining data shows the owner of Pleasant View Mining is Gary Peyton.

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.