Engineering & Mining Journal

MAR 2016

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26 E&MJ; • MARCH 2016 www.e-mj.com NEWS-THIS MONTH IN COAL bility for a ruling later this year while others have projected appeals will go into 2017. There are more than 30 lawsuits that have been filed to date against the CPP. The White House was obviously disap- pointed. "We disagree with the Supreme Court's decision," White House spokesman Josh Earnest said, arguing that the plan is based on a legal and technical foundation and provides proper time for states to com- ply. "[We will continue to] "take aggressive steps to make forward progress to reduce carbon emissions." While the stay is a temporary one, those opposed to the CPP were pleased. "We are thrilled that the Supreme Court realized the rule's immediate impact and froze its imple- mentation, protecting workers and saving countless dollars as our fight against its legal- ity continues," West Virginia Attorney General and coalition leader Patrick Morrissey said. Matt Mead, governor of top U.S. coal- producing state Wyoming, agreed. "It puts on hold this very bad policy based on a deeply flawed process while the legal issues are being addressed." The death of U.S. Supreme Court Justice Antonin Scalia following the stay could work against pro-coal groups depending on when the case returns to the court and the out- come of this year's presidential election. Luminant Closing Doors to Thermo, Winfield Mines Following through on a plan first outlined in 2014, Luminant Mining announced it will soon be halting operations at the Winfield and Thermo mines in northeast Texas. Company spokesman Brad Watson told local media that Worker Adjustment and Retraining Notification (WARN) Act notices were distrib- uted to approximately 80 employees at the operations in Hopkins and Titus counties, which feed the Monticello power plant. Layoffs will take place April 29, and many workers have already been provided transfers to other positions. "Mining production will end in April. There has only been active pro- duction at the Thermo mine…the Winfield mine has a stockpile that is being brought out, but all mining will end," he told local newspaper the Daily Tribune , noting that the plant will continue to use a mixture of local lignite and Powder River Basin (PRB) coal. "Operations at Monticello will not be affected by this. [The PRB coal] will be brought in by rail." The company also has said that the deci- sion was only a business decision and was unrelated to its Chapter 11 bankruptcy case. Winfield operations had been idled since late 2014, and only surface operations are ongoing at Thermo. The 1,880-megawatt Monticello plant, located in Mount Pleasant, currently has three active units. Tegeta's Optimum to Export From Richards Bay Tegeta Exploration and Resources, current- ly awaiting approval of its acquisition of Glencore's Optimum operation in South Africa, will reportedly acquire about one- tenth of the export rights at the Richards Bay export facility. According to Bloomberg , citing an inter- view with Tegeta shareholder Oakbay Invest- ments CEO Nazeem Howa, the company will send 8 million metric tons (mt) through the facility, giving it the distinction of being the country's first "small" miner to do so. The purchase "allows us access to an export contract," Howa reportedly said at an antitrust tribunal meeting on February 17. "Until now, that's been controlled by the big players. It's quite significant access for us." Tegeta's purchase of Optimum cleared South Africa's Competition Tribunal last week, so long as the transaction will save jobs. The $137 million (2.15 billion rand) deal was first announced last December. The Optimum thermal mine has been in business rescue, similar to bankruptcy pro- tection in the United States, since last August after one of its customers, utility Eskom, cut off its orders over pricing issues. Richards Bay, which also handles exports for Glencore, Anglo American and South32, shipped a record 75.4 million mt in 2015 and has a capacity of 91 million mt. It is Africa's largest such facility. Arch, Wyoming DEQ Agree to Self-bonding Deal After being given a brief extension by the federal government, the Wyoming Depart- ment of Environmental Quality (DEQ) and Arch Coal have reportedly agreed upon the troubled producer's self-bonding and will accept about $75 million instead of the company's bonding obligations tab of $486 million as Arch continues through its bankruptcy. According to the Casper Star Tribune , the documentation to formalize the agree- ment was filed February 9 in the Missouri bankruptcy court where Arch's case is being processed. Wyoming will now be a priority creditor, allowing it to collect some of Arch's obligations as needed. Previously, the agreement between the company and the DEQ outlined that it wouldn't need to post bond for its assets in Wyoming so long as it could present proof of its ability to cover any potential recla- mation costs. Arch then confirmed it filed for Chapter 11 protection on January 11, leading to a U.S. Office of Surface Mining Reclamation and Enforcement (OSMRE) probe into its reclamation status with the state agency. Earlier this month, the DEQ requested additional time to complete its investigation of Arch; the OSMRE responded by extend- ing its February deadline to February 22. DEQ spokesman Keith Guille said the agreement will allow the company's mines to stay open and to continue ongoing recla- mation efforts. "Being able to enter into this agreement is positive for all of Wyoming, and its taxpayers, and the envi- ronment," he said. The state of Wyoming has resolved bonding issue with Arch Coal, which operates the Black Thunder mine (above).

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