Coal Mining Making a Comeback in Kentucky

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Researched by Industrial Info Resources (Sugar Land, Texas)--Newly formed Armstrong Coal Company Incorporated (Madisonville, Kentucky) has big plans for coal mining in Kentucky where it plans to mine 8 million tons by 2012. The company is one of many coal mining firms that are in the process of expanding mining capacity in western Kentucky. Armstrong Coal has reopened underground mining operations at the Big Run coal mine, which it purchased from Peabody Energy in 2006. Big Run is located in Ohio County, near Centertown, Kentucky. The company has ambitious plans to bring online two underground mines, three surface mines, rail and barge loading facilities, and two coal prep (washing) plants, eventually employing 900.

Armstrong Coal is wrapping up construction on a 600 ton per hour coal preparation plant, and structural steel is going up for a duplicate, second prep plant, eight miles from the first prep plant. One of the prep plants will serve barge traffic on the Green River and the other will serve rail traffic. Both plants are being designed for eventual capacity expansion up to 1,200 tons per hour each. An expansion decision will be made in the next two to three years.

General Mine Contracting Incorporated (Henderson, Kentucky) is the general contractor for both prep plants. Fricke Management and Contracting Incorporated (Murphysboro, Illinois) was awarded the construction contract for the second prep plant. General Mine Contracting is also involved with construction of a prep plant for Warrior Coal LLC, a subsidiary of Alliance Resource Partners LP (NYSE:ARLP) (Lexington, Kentucky), in Madisonville, Kentucky.

Alliance Resource Partners is also involved in expanding coal mining capacity in Kentucky and plans to expend about $165 million on capital projects in 2008 mainly at its River View Coal and Warrior Coal subsidiaries in Kentucky. Demand for high sulfur Illinois Basin coal is on the rise causing resurgence in mining activity in the area.

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