Armstrong Coal plans new mine in western Kentucky

Louisville, Kentucky (Platts)--10Dec2012/623 pm EST/2323 GMT


Armstrong Coal is seeking a Section 404 Clean Water Act permit from the US Army Corps of Engineers for a new surface mine it plans near its existing operations in Ohio County, Kentucky.

The proposed Lewis Creek West mine is expected to be considerably larger than the company's existing Lewis Creek East mine, an Army Corps official said Monday in an interview. Armstrong officials could not be reached for comment Monday, and the company's application did not specify whether Lewis Creek West will be a new mine.

But the Army Corps official, who asked not to be identified, said "from our point of view, it's a new mine. It will be a lot larger than the Lewis Creek East mine."

Article continues below...


Request a free trial of: Coal Outlook Coal Outlook
Coal Outlook

Coal Outlook is delivered daily and focuses on marine fuel prices and supply in major ports worldwide. It is essential reading for those who require accurate and timely data on this market sector.

Request more information about Coal Outlook Request a trial to Coal Outlook


The official added that Armstrong, at some point, will be required to provide expected tonnage information to the Army Corps, but it has not yet done so.

The new mine will be located just west of the existing Lewis Creek East steam coal mine near Centertown. The mine produces high-sulfur coal from the West Kentucky No. 13 and 13A seams. The mine uses one dragline and features truck-and-shovel mining.

Lewis Creek East produced 781,694 short tons of coal in the first three quarters of 2012 and 488,278 st in 2011, according to the US Mine Safety and Health Administration.

Armstrong Coal, a unit of St. Louis-based Armstrong Energy -- which is in the process of going public -- operates seven mines, three prep plants, and a coal loadout facility on the Green River in western Kentucky.

The company is expected to produce more than 8 million st in 2012 and is contractually committed to sell 8.3 million st this year and 7.1 million st in 2013. Armstrong Coal produced 6.6 million st in 2011.

--Bob Matyi, newsdesk@platts.com
--Edited by Valarie Jackson, valarie_jackson@platts.com