Engineering & Mining Journal

DEC 2015

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34 E&MJ; • DECEMBER 2015 www.e-mj.com NEWS-THIS MONTH IN COAL Don Blankenship, the ex-executive of Massey Energy charged with one con- spiracy and two securities charges stemming from the 2010 Upper Big Branch mine explosion in West Virginia, was found guilty of one misdemeanor charge of conspiracy. After deliberating for nearly 10 days, a 12-member feder- al jury returned a split verdict: guilty of conspiracy for federal safety regulation violations, and two decisions of not guilty for charges of making false state- ments to securities officials and com- pany shareholders. The trial was wrapped relatively quickly; jury selection began on October 1 and the jury heard evidence from 27 witnesses in the following sev- eral weeks. The group's decision came the morning of December 3, and U.S. Attorney Booth Goodwin held a press conference to confirm the results at 1 p.m. local time at the Robert C. Byrd U.S. Courthouse in Charleston, West Virginia. He was flanked by FBI Special Agent James Lafferty, U.S. Department of Labor Office of Inspector General Special Agent Jeffrey Carter, and Assistant U.S. Attorneys Steve Ruby, Greg McVey and Gabriele Wohl. "The jury's verdict sends a clear and powerful message: It doesn't matter who you are, how rich you are, or how powerful you are—if you gamble with the safety of the people who work for you, you will be held accountable," Goodwin said. "The evidence overwhelmingly showed an enterprise that embraced safety crimes as a business strategy. It was reprehensible, and the jury saw it for what it was. Time and time again, the defendant chose to put profits over safety. He got rich and the coal miners who worked for him paid the price." Sentencing for Blankenship is tenta- tively scheduled for March 23. He faces up to one year in federal prison as well as a fine of up to twice the gain or loss that resulted from his conduct. As the two left the courthouse, Blankenship's attorney William Taylor said the trial never should have been brought and they will appeal. Bowie Acquires Twentymile and El Segundo Mines Bowie Resource Partners plans to pur- chase the El Segundo and Lee Ranch mining complexes in New Mexico and the Twentymile mining complex in Colorado from Peabody Energy for $358 million in cash plus the assump- tion of $105 million in liabilities. This acquisition will nearly double the size of Bowie's production output to 25 million tons per year (t/y), making it the largest bituminous coal producer in the western United States. This will also generate top line revenues of $1 billion annually. Bowie will now operate five mining complexes in Colorado, New Mexico and Utah, employing more than 1,700 people. "These acquisitions fit the vision and model that were the genesis of Bowie Resource Partners, as we continue to buck the industry trend with long-term contractual partnerships with our cus- tomers and secure margins in our niche," said John Siegel, executive chairman for Bowie Resource Partners. "The El Segundo and Twentymile min- ing complexes have exemplary safety and productivity records, long-term rela- tionships with domestic customers, and superior reserve quality that combine to render this an accretive and synergistic acquisition for us that will create economies of scale and lower cost." In 2014, the El Segundo and Twentymile mining complexes produced 8.4 million tons and 6.7 million tons of high Btu, low sulfur coal, respectively. The Twentymile longwall mine is capa- ble of producing 8 million t/y or more. Former Massey CEO Blankenship Convicted Former Massey Energy CEO Don Blankenship, right, and lead attorney William Taylor, depart the Robert C. Byrd United States Courthouse following the third day of jury deliberations in his trial in Charleston, West Virginia, Thursday, November 19. (Photo: Walter Scriptunas II AP )

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