Rhino works on buy of western Kentucky coal property

Rhino Resource Partners LP (NYSE: RNO) said May 8 that it has purchased certain rights to coal leases and surface property located in Daviess and McLean counties in western Kentucky.

The coal leases and property are estimated to contain approximately 30 million tons of non-reserve coal deposits and approximately 12,100 leased acres that are contiguous to the Green River, a major thoroughfare for western Kentucky coal moving into the Ohio River power plant market. The property is undeveloped, but fully permitted, and provides Rhino with access to Illinois Basin coal reserves adjacent to a navigable waterway, which is expected to provide enhanced export opportunity to non-U.S. customers, said Rhino. It didn’t offer any further description of the property or who the seller would be.

Dave Zatezalo, President and CEO of Rhino’s general partner, stated: “We are pleased to make an acquisition that provides inland waterway access from the Illinois Basin. This acquisition provides Rhino lower cost capability to develop a substantial footprint in a major coal producing basin, thus strengthening our product and market offerings.”

Rhino hasn’t been in western Kentucky up to now. It does have the undeveloped Taylorville deep mine project in Christian County, Ill., also in the Illinois Basin, that is at least in part awaiting development of a nearby coal gasification plant to go into development.

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.