White Oak Mine
{{#Badges: CoalSwarm}} White Oak Mine is an underground coal mine in Hamilton County, Illinois that will be operated by White Oak Resources LLC. Governor Pat Quinn announced approval of the mine on October 23, 2010. The company will invest more than $400 million in construction of the mine, which is expected to open in late 2012 or early 2013 with projected annual production of 7.5 million tons of coal. The White Oak Mine #1 is the first of four the company has proposed for the area.[1]
White Oak CEO Mike Tracy said the company is looking to market its coal to “high-volume users” such as Ameren and other large utilities; eventually, the company looks to market its coal overseas, he added.[2]
On Sep. 22, 2011, Alliance Resource Partners said it will invest $400 million to $525 million over three or four years in the coal-mining operation. The deal includes coal producer Alliance taking an ownership stake in White Oak Resources LLC. Alliance is investing $69.5 million at closing, and will commit $140 million to acquire coal reserves, which it will lease back to White Oak for royalty payments.
Alliance also committed up to $110 million to buy coal-handling facilities, and it will give White Oak up to $100 million in backstop financing for mining equipment. Alliance said the deal will add to earnings and distributable cash flow once production begins, around 2014.[3]
Contents
History
According to the McLeansboro Times Leader archives, Jim Lindsey of Energy Plus negotiated a deal with Hamilton County in 2006, representing the McLeansboro and North Hamilton County coal associations as a coal broker. Lidsey was able to negotiate a contract with Hamilton County for 7,700 acres in coal reserves it received from Exxon Coal USA in 1992. In early 2008, it was announced that Hamilton County would have two coal mines with a third in the planning stages by White Oak Resources LLC.[4]
Project Details
- Sponsor:
- Parent Company: White Oak Resources
- Location: Hamilton County, Illinois
- GPS Coordinates:
- Status
- Production Capacity: 7.5 million tons (projected)
- Total Resource:
- Mineable Reserves:
- Coal type:
- Mine Size:
- Mine Type: Underground
- Start Year:
- Number of employees: 350 (projected)
- Source of Financing:
- MSHA ID:
- Union:
Articles and resources
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- Illinois and coal
- Proposed coal mines
To see a listing of coal mines in a particular state, click on the map:
References
- ↑ Evan Shields, "Governor Quinn Announces Approval of New Coal Mine in Hamilton County: White Oak Mine Will Create 650 Jobs, Boost Regional Economy" Illinois Government News Network, October 23, 2010.
- ↑ Paul Lorenz, "CEO: Third mine on drawing board" Mcleansboro Times Leader, September 17, 2008.
- ↑ "Alliance to invest up to $525M in coal project" AP, Sep. 22, 2011.
- ↑ "Coal Association Investigation Sale Of Coal Mine Rights" Mining Exploration News, Dec. 25, 2008.
