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14 E&MJ; • JANUARY 2016 www.e-mj.com NEWS-THIS MONTH IN COAL Cliffs Natural Resources sold the Pinnacle mine in West Virginia and Oak Grove mine in Alabama to Seneca Coal Resources. The $268 million deal is based on Seneca Coal assuming all liabilities. Additionally, Seneca Coal may pay Cliffs an earn-out of up to $50 million contingent upon the terms of a rev- enue sharing plan, which extends through the year 2020. "The sale of Pinnacle and Oak Grove to Seneca Coal marks Cliffs' exit from the coal business, and represents another very important step in the implementation of our U.S. iron ore pellet-centric, environmental- ly compliant strategy," said Lourenco Goncalves, chairman, president and CEO of Cliffs. "We are pleased to have found a buyer that was able to agree on a transac- tion that not only brings real value to Cliffs shareholders, but will also preserve jobs for the exceptional people at these two mines." Both of the mines produce metallurgi- cal coal and are former U.S. Steel assets that have changed hands over the years. Located near Pineville, the Pinnacle mine, formerly known as U.S. Steel No. 50 mine, operates the only plow longwall face in the U.S. The plow, as the name implies, shaves coal from a thin seam for the full length of the face as opposed to a shearing machine, which cuts coal from the face. Seneca is affiliated with West Virginia- based ERP Compliant Fuels (ERP). The company plans to produce 4.4 million tons of metallurgical coal in 2016 and employ 811 people in West Virginia and Alabama. ERP is engaged in rebalancing the supply of domestic coal through the purchase, reclamation, and retirement of 135 mining permits in five states. ERP is actively marketing the sale of "Compliant Fuel," which bundles refor- estation carbon credits with coal sales, to reduce the rate of growth in atmospheric carbon dioxide. With the Seneca pur- chase, ERP will operate three under- ground longwall mines, producing more than 8 million tons of thermal and metal- lurgical coal annually. Wollongong to Restart Wongawilli in Australia After placing the mine on care-and-main- tenance status last year, New South Wales- based Wollongong Coal is moving toward a restart of operations at the Wongawilli mine and adding 110 workers. The move comes just three weeks after the New South Wales Planning Assessment Commission (NSW PAC) gave a greenlight to a five-year exten- sion of the operation's mining license. It had been idled since late August 2014. Officials told ABC News Australia that production should begin again early next year. "Wongawilli Colliery is an important asset for the company and a key part of our long-term strategy for extracting and exporting high-quality coking coal for the production of steel and generating local employment opportunities," Operations Manager Rhys Brett said. "We will now begin preliminary planning and discus- sions with key stakeholders in the expecta- tions that operations at Wongawilli will recommence in early 2016." The producer has signed a two-year deal with Australian contractor miner Delta SBD to manage the restart as well as offer technical, personnel and equipment assis- tance; the decision to be a contract-based workforce has reportedly been much to the chagrin of miners furloughed in the mine's closure in 2014 as well as local legislators. Westmoreland Signs Long-term Deal Extension in Canada Independent producer Westmoreland Coal confirmed it has lengthened a long-term sup- ply deal with Saskatchewan Power Corp. (SaskPower) by an additional 14 years. The deal, which includes more than 58 million tons, will now run through the end of 2029. The coal will originate at Westmoreland's Poplar River surface mine in the south-cen- tral Saskatchewan town of Coronach. The mine has been supplying coal to SaskPower's Poplar River Generating Station since 1978. "We are proud to continue to be the sole provider of fuel to SaskPower from both our Estevan and Poplar mines," said John Schadan, president and COO of Westmoreland Coal. "This 14-year exten- sion is a reflection of our core objective of exceeding our customers' expectations. On behalf of the Westmoreland team, I would like to thank SaskPower for demonstrating their commitment to Westmoreland." The two-pit Poplar River complex uses a pair of BE 2570W draglines to produce about 2.2 million metric tons annually. Last U.K. Deep Mine Closes Friday, December 18 was the final day of work for 450 mines at the Kellingley Colliery in North Yorkshire, also known as the Big K, as the mine will be permanent- ly idled—bringing to an end a two-year- long closure plan for British deep mines. Kellingley, the largest deep pit in Europe and the last deep mine in Britain, had employed about 1,600 in recent years, and at one time had a payroll exceeding 2,000. It first came online in 1965 and produced 900 metric tons (mt) per hour at prime levels. Cliffs Sells Remaining U.S. Coal Assets Thousands of miners and their families hold a sentimental solidarity march in North Yorkshire to mark the closure of Kellingley Colliery, Britain's last operating deep coal mine. The crowds and a marching band fill the streets, December 19, in Knottingley, 290 km north of London, one day after the final shift. (Photographer: Jayda Locksmith)