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NEWS-THIS MONTH IN COAL Walter Energy Curtails Production at Willow Creek Walter Energy recently decided to curtail production at its Willow Creek mine in Canada. A surface mine, located near Chetwynd, B.C., it produces metallurgical coal with production plans of onethird hard coking coal and two-thirds lowvolatile PCI coal over the mine's expected 20-year life. The operation has approximately 19 million metric tons of recoverable coal reserves. "The current price environment for met coal dictated that we curtail production at Willow Creek to ensure we generate a sufficient economic return in mining the high quality met coal reserves at the site," said Walter J. Scheller, CEO, Walter Energy. "Given the tremendous progress that has been made in the cost structure at the mine, when we see signs of sustainable market pricing conditions we would expect to ramp up production. The mine, which will be curtailed in April, currently employs approximately 350 employees, of which approximately 250 will be affected by the decision to curtail production. The Willow Creek mine will continue with limited operations to support Walter Energy's Brule mine." Willow Creek is the fifth mine Walter Energy has announced plans to curtail or idle as part of its initiatives to address underperforming assets. The company is also accelerating the closure of its North River underground mine in Alabama. In addition, the company has also idled the Aberpergwm mine in South Wales and the Gauley Eagle underground and surface mines in West Virginia, and has curtailed production at its Maple underground mine, also in West Virginia. The company expects to record a onetime cash charge of approximately $7.5 million in severance costs in connection with its curtailing production of the Willow Creek operations. Walter Energy currently expects that full year 2013 metallurgical coal production will be in line with production levels in 2012. CONSOL Energy Plans to Re-enter Blacksville No. 2 CONSOL Energy has received approval from the Mine Safety and Health Administration (MSHA) for its plan to reenter the Blacksville No. 2 mine, evacuated March 12 when smoke was detected from the Orndoff shaft. Since then CONSOL Energy, in conjunction with federal and state authorities, pumped enough water into the mine to complete the seal operation and remotely pump eight isolation walls from the surface to seal off the fire area. This process was completed March 24. An analysis indicated the fire was successfully extinguished and company officials have said they would allow re-entry pending further testing; Blacksville No. 2 produces approximately 400,000 tons of coal monthly under normal operations. Walter Energy idles the Willow Creek mine, which it purchased from Western Coal in 2011. 42 E&MJ; • APRIL 2013 "I am extremely proud of the successful collaborative effort from federal and state agencies, the UMWA, contractorsvendors and our employees on site who worked around-the-clock to remotely extinguish a fire in less than 12 days," said CONSOL Energy Senior Vice President Chuck Shaynak. "We accomplished all of the work without an injury." CIAB Issues Report; Boyce Named Chairman Peabody Energy CEO Gregory H. Boyce has been named chairman of the International Energy Agency's (IEA) Coal Industry Advisory Board (CIAB) along with the release of its newest report, 21st Century Coal: Advanced Technology and Global Energy Solution. The CIAB is a group of chief executives and senior-level officials from coal-related industrial enterprises worldwide established in 1979 by the IEA, a Paris-based organization operating under the Organization for Economic Cooperation and Development (OECD). The 122-page CIAB report focusing on technology to achieve near-zero emissions was welcomed by officials of the World Coal Association (WCA). "This is an important piece of advice to global policymakers on the role of coal in a carbon-constrained world," said Milton Catelin, WCA chief executive. "It demonstrates a clear technological pathway to providing cleaner energy access to the 1.3 billion people who lack it." The report found efficiency power generation from coal is the first step in lowering carbon dioxide emissions; major advancements in coal technology are taking place today in the efficiency, emissions and costs. Advanced generation, according to the report, is a must to reduce greenhouse emissions—together with the development of major carbon capture and storage projects globally. The report includes case studies on coal-fired power plants' flexibility in maintaining grid stability and uninterrupted electricity flows—while addressing potential enhanced oil recovery to restore momentum for carbon capture technology. "Coal will remain the cornerstone fuel in the global energy for decades," said www.e-mj.com