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24 E&MJ; • MARCH 2014 www.e-mj.com NEWS-THIS MONTH IN COAL Amid improved safety and operational performance, Westmoreland Coal Co. reported record 2013 revenues ($675 million) in wake of its recent Sherritt acquisition. The company expects to pro- duce 28 million tons in 2014. Moreover, as reportable incidents fell from 78.1% to 56.4% year-on-year, rep- resentatives voiced enthusiasm over bal- ance sheet prospects. "Our strong operat- ing cash flows set the stage for the trans- action," said Executive Chairman Keith E. Alessi, referring to the Colorado miner's Sherritt purchase for $465 million. CEO Robert P. King attributed 2013 growth to strong power demand, low hydro generation, and favorable weather conditions. "We are also very pleased that the Kemmerer mine, (acquired in Q1 2012), continued to perform beyond expectations" in safety terms, while Westmoreland's incidence rate remained significantly lower than the national aver- age for surface mines, he added. A new customer and Sherco Unit 3's resuming operations at the Absaloka mine further enhanced revenues. North Carolina's ROVA power plant also experi- enced improved performance with fewer outages. Both factors overrode impacts of significant unplanned customer outages last year. Prospectors Discover Another Significant Met Coal Deposit A coalfield with an estimated 7 billion- metric-ton (mt) reserve has been discov- ered in Western Canada, containing what's believed to be the world's single largest metallurgical coal deposit, offi- cials at Canadian Dehua International Mines Group Inc. (CDI) have announced. CDI chief engineer Vincent Li said analytical data indicates that the reserve lies in a 150-km 2 area at a depth of 1,000 m; 50% of the formation is believed to be high-quality met coal. Located in the Wapiti river area in northeast British Columbia, it would sur- pass the previously largest recorded coal- field, Mongolia's Tavan Tolgoi, which pos- sesses 1.8 billion mt of coking coal with- in its 6.5 billion mt of reserves. Oregon Issues 3 Permits for Coyote Island Terminal The Oregon Department of Environ- mental Quality has issued air quality, water quality and construction storm- water permits associated with the pro- posed Coyote Island Terminal coal export project in Boardman, also known as the Morrow Pacific project. "By issuing these three permits after a rigorous process, the Department of Environmental Quality has affirmed that the project complies with environmental rules and regulations of the state of Oregon," said Clark Moseley, CEO, Morrow Pacific project. The project is currently seeking per- mits from the U.S. Army Corps of Engineers and the Oregon Department of State Lands, and is projected to be oper- ational by the beginning of 2015. The Corps has indicated that a permitting decision will be forthcoming in the spring of 2014. The Morrow Pacific project will ship low-sulfur coal by rail from western U.S. coal mines to the Port of Morrow. There it will be transferred to an enclosed storage facility and loaded onto covered barges through an enclosed conveyor. The coal will then be shipped down the Columbia River to Port of St. Helens' Port Westward Industrial Park. There, enclosed trans- loaders will transfer the coal onto covered oceangoing Panamax ships. U.S. Sees Another Strong Year for Coal Exports Preliminary trade data show U.S. coal exports totaled nearly 118 million short tons in 2013, according to the National Mining Association (NMA). While down 6% from the record 126 million tons in 2012, the coal industry has nevertheless seen coal exports more than double since 2006 with last year being the third con- secutive year of exports above 100 mil- lion tons. "Despite some market challenges in 2013, U.S. coal exports have clearly re- mained fairly strong," said Hal Quinn, NMA's president and CEO. Steam coal exports (excluding anthra- cite and lignite) totaled 51.2 million tons and metallurgical coal exports were 65.7 million tons. Anthracite exports were 700,000 tons, while lignite exports totaled 100,000 tons. Coal exports accounted for nearly 12% of U.S. pro- duction in 2013. Mechel Upgrades Port Posiet Russian coal mining company Mechel is testing a new coal terminal, Port Posiet, in Russia's Primorye region. A $128 mil- lion port upgrade will enable the compa- ny to significantly enhance Asia-Pacific exports; industrial operation will begin in Q2 2014. The first stage includes revamping cargo turnover provisions up to 7 mil- lion mt/y. The upgrade allow the port to load 28,000 mt/d of coal. The equip- ment was provided by ThyssenKrupp AG, which is overseeing start-up and commissioning. The second stage includes construc- tion of a deep-water berth and bottom dredging of the approach channel for Panamax-type vessels of up to 60,000- mt cargo capacity; Primorye borders China and North Korea and faces the Sea of Japan. Westmoreland Reports Improvement Westmoreland expects to produce 28 million tons in 2014. EMJ_pg04-27_EMJ_pg04-27 3/3/14 10:32 AM Page 24