Engineering & Mining Journal

NOV 2018

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NEWS - THIS MONTH IN COAL 30 E&MJ • NOVEMBER 2018 Bowie Changes Name to Wolverine, Moves to Utah U.S. bituminous coal operator Bowie Resource Partners moved its corporate headquarters from Grand Junction, Colo- rado, to Sandy, Utah, and has changed its name to Wolverine Fuels LLC. Wol- verine will continue to operate the Suf- co, Skyline and Dugout Canyon mines in Utah and the idled Bowie No. 2 mine in Colorado, and will also maintain a small regional office in Grand Junction. "We are primarily a Utah company, employing Utah citizens and supplying coal to Utah power plants, so it only makes sense that we have our headquar- ters in Utah," said James Grech, Wolver- ine's CEO, who was recently appointed in July. "This move will allow the executive team to be closer to our mines, our work- force and our customers," Grech said. "The Utah economy benefits from low cost, sustainable electricity, generated by its many diverse resources, including the coal-fired power plants located in the state," said Laura Nelson, the governor's energy advisor and executive director of the Governor's Office of Energy Development. "The Wolverine mines are key suppliers to those plants, providing jobs and energy se- curity locally, regionally and globally." "In conjunction with the recent man- agement changes and re-capitalization of the company, we wanted to offer our employees a fresh start and new identi- ty with the name change," Grech said. "Our workforce is tough and resilient, very much like a wolverine, so we think our new namesake will resonate very well with our employees and the communities in which we operate." Peabody Will Acquire Shoal Creek Mine Peabody Energy has signed a definitive agreement to purchase the Shoal Creek metallurgical coal mine located on the Black Warrior River in Alabama from private coal producer Drummond Co. Inc. for $400 million. Shoal Creek serves Asian and Euro- pean steel mills with high-vol A coking coal. Peabody will purchase the mine, prep plant and supporting assets. The agree- ment excludes legacy liabilities other than reclamation. The transaction is ex- pected to close before the end of 2018. "Peabody has consistently outlined our intention to upgrade our metallurgical coal platform and make strategic invest- ments using a strict set of filters," said Peabody President and CEO Glenn Kellow. "We believe the purchase of the well-capi- talized and high-quality Shoal Creek mine meets these filters, offers major logistical advantages and represents an opportunity to create significant value." Shoal Creek represents the next phase of Peabody's initiative to upgrade its met- allurgical coal platform, adding approx- imately 2 million short tons per year of high-quality hard coking coal sales, the company said. The mine is strategical- ly positioned with direct access to barge transportation, eliminating trucking or rail requirements. The mine accesses seaborne markets through the McDuffi e Terminal in Mobile with substantial available capacity. The Shoal Creek longwall mining com- plex employs 400 and extracts coal from both the Blue Creek and Mary Lee coal seams. The current mine plan accesses 17 million tons of reserves. In 2017, the mine sold 2.1 million tons. Westmoreland Files for Bankruptcy During early October, Westmoreland Coal Co. entered into a restructuring support agreement (RSA) with members of an ad hoc group creditors. To implement the RSA, the company filed voluntary peti- tions for relief under chapter 11 of the U.S. Bankruptcy Code in the U.S. Bank- ruptcy Court for the Southern District of Texas, Houston Division. "After months of thoughtful and pro- ductive conversations with our creditors, we have developed a plan that allows Westmoreland to operate as usual while positioning Westmoreland for long-term success," said Michael Hutchinson, Westmoreland's interim CEO. "We will continue to work constructively with the ad hoc group and serve our customers in the normal course as we progress through an expedited process to restruc- ture our long-term debt and other liabil- ities. Our goal is to emerge as a stronger Westmoreland, better positioned to grow and thrive." Westmoreland's coal operations in- clude surface coal mines in the United States and Canada, underground coal mines in Ohio and New Mexico, a char production facility, and a 50% interest in an activated carbon plant. NRP, Foresight Resolve Legal Dispute Natural Resource Partners and Foresight Energy recently settled litigations regard- ing Foresight Energy's Hillsboro Energy Deer Run mine and Foresight Energy's Macoupin Energy Shay mine. Upon ex- ecution of final documents, NRP will receive a payment of $25 million from Foresight Energy in consideration of dis- puted past due amounts. In addition, NRP and Foresight Energy will amend the Hillsboro Energy coal mining lease to pro- vide $11 million of non-recoupable annu- al minimum payments to NRP and extend the current lease term through the end of 2033. All claims will be dismissed in both the Hillsboro Energy and Macoupin Energy litigations. An aerial photo of the Skyline mine, one of three Wolverine mines in Utah.

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