Armstrong Coal permits area for western Kentucky mine

Armstrong Coal is pursuing a wastewater permit from the Kentucky Department for Environmental Protection for a 146.5 acre area for the Midway North strip mine in Ohio County, near Centertown.

The DEP on Oct. 15 issued for comment a socioeconomic report on the project written by the company. It said this mine will employ 120 miners and will be covered under amendment #1 of Kentucky Department for Natural Resources mine permit #892-9000. That permit belongs to the existing Midway strip mine.

The estimated tax revenue from the Midway North project for government is based on 1.2 million tons per year of production at an assumed sales price of $55/ton.

Armstrong Coal has been looking to go public under a new parent, Armstrong Energy. In a May 30 SEC filing, the parent said about Midway: “The Midway mine is a surface mine located two miles southeast of Centertown, Kentucky in Ohio County and is west of and adjacent to the Midway Preparation Plant. The Midway mine commenced production in April 2008 and extracts thermal coal from the West Kentucky #13a, #13, and #11 seams. Stripping ratios for coal that has not undergone any processing, or ‘run-of-mine’ coal, at the Midway mine are favorable and averaged approximately 11-to-1 in 2011. The Midway mine produced approximately 1.6 million tons of clean coal in 2011 and is currently equipped with one dragline (45 yard bucket) and a spread of surface mining equipment, including power shovels, excavators, loaders and haul trucks. Our reserve studies have indicated that the Midway mine has approximately 21 million tons of proven and probable reserves. Coal from the Midway mine is transported less than one mile to the Midway Preparation Plant for processing, where it is then shipped to customers via truck, rail or barge.”

U.S. Mine Safety and Health Administration data shows that Midway produced 827,045 tons in the first half of this year.

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.