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24 E&MJ; • JULY 2014 www.e-mj.com NEWS-THIS MONTH IN COAL CONSOL Energy Inc. celebrated the com- pany's 150 th anniversary and hosted a ded- ication ceremony at its Bailey Mine Expansion (BMX). The BMX mine has been renamed the Harvey mine in recognition of the leadership of J. Brett Harvey, who was recently elected executive chairman of CONSOL Energy's board of directors after 16 years with the company as president, chief executive officer and chairman. "He navigated the company through significant challenges he inherited when he arrived in the late 1990s, and made CONSOL the premier energy company that it is today," said Nick DeIuliis, CONSOL Energy president and chief executive offi- cer. "Brett's legacy will be defined, not only for the way he deftly guided CONSOL through one of the most significant chap- ters in our long history, but for the example he set and importance he placed on our core value of safety above all else." He added, "Today, Brett Harvey joins Ralph Bailey as the greatest leaders this company has ever known. Our company, and the entire industry, is better off today because of Brett's unwavering commit- ment to the safety of the men and women who work underground every day to provide society with the comforts we all enjoy." The Harvey mine, which officially began production in March 2014, is the third coal mine and contains the fifth longwall system at the Bailey Complex—the largest under- ground coal complex in North America. The 5-million-ton-annual-production capacity at the Harvey mine brings total annual produc- tion capacity at the complex to nearly 30 million tons. Approximately 2,500 employ- ees support work at CONSOL Energy's Pennsylvania Coal Operations, with 400 new jobs directly tied to the Harvey mine. Cliffs to Idle Pinnacle Mine Cliffs Natural Resources has con- firmed that it will temporarily idle its Pinnacle underground metallurgical mine in southern West Virginia due to market conditions, and the stoppage could be lengthy. In a U.S. Securities and Exchange Commission filing entered June 25, the producer said that it has already issued a Worker Adjustment and Retraining Notification (WARN) Act notice to all of Pinnacle's employees. The notice indicated that, if the market does not improve, it will idle the operation on or about August 25 for a period esti- mated to last six months or longer. Pinnacle, a United Mine Workers of America-represented mine located near Pineville, which extracts from the Pocahontas No. 3 seam, has about 575 employees, 397 of which are hourly. The mine runs a single longwall panel as well as continuous miner sections; it produced 2.8 million tons of high quality, low-vol met product last year. Russia Considering Mechel Bailout Economy Minister Alexei Ulyukayev told Reuters that the government was consider- ing a scheme that would involve a $5.2 bil- lion (180 billion roubles) convertible bond that would subsequently be purchased by state development bank Vnesheconom- bank (VEB), and Mechel would, in turn, utilize the proceeds to tackle part of its debt load. The company is currently $8.6 million in debt, and in the past has endured sever- al debt restructurings with creditor banks. A rescue deal, however, may reduce the stake of its controlling shareholder, busi- nessman Igor Zyuzin. If this scheme moves forward, it could be the first corporate restructuring involving the dilution of a controlling shareholder's stake; Zyuzin cur- rently owns 67.4% of Mechel. "The main thing being discussed is a bridge loan and then the transfer of rights to demand collateral to VEB. It is possible that these rights will come through...con- vertible bonds," Ulyukayev told Reuters . He did not disclose the amount of the possible bridge loan, but sources familiar with the issue said that three state banks, including Sberbank, VTB and Gazprom- bank, may combine to provide Mechel with a $1 billion (35 billion roubles) bridge loan before it issues the bonds. Mechel has so far not commented on the potential deal, and none of the banks have issued statements. The situation has already been dis- cussed with First Deputy Prime Minister Igor Shuvalov, and this week there is a plan to talk it over with Prime Minister Dmitry Medvedev, unidentified sources told Reuters . A decision could be made in two to three weeks. CONSOL Energy Dedicates BMX Mine in Honor of Harvey Brett Harvey (left) and Nick Deluliis officially open the Patterson Creek Portal in Pennsylvania. EMJ_pg04-27_EMJ_pg04-27 7/2/14 1:50 PM Page 24