CONSOL Energy Moves Forward with Major Coal Mine Expansion Projects

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Researched by Industrial Info Resources (Sugar Land, Texas)--As part of an intensive capital spending campaign, CONSOL Energy Incorporated (NYSE:CNX) (Pittsburgh, Pennsylvania) has begun construction on a couple of large-scale mine expansion projects in West Virginia and Pennsylvania to help boost coal production in the area. At the Shoemaker coal mine in Dallas, West Virginia, contractors are underway with earthwork and are sinking the slope for a new mine access. As of the week of January 21, 2008, mining contractor Frontier-Kemper Constructors Incorporated (Benwood, West Virginia) had drilled the slope access to 433 feet below ground. The new mining slope is not expected to be complete until December 2008. Erection will begin no earlier than April 2008 on a new conveyor beltline system, 5,000 feet of which will be overland conveyor. The new conveyor beltline will replace a 7.5-mile antiquated underground rail haulage system and will ultimately help increase production of the Shoemaker mine up to 6 million tons per year. The mine is currently idle while the improvements are being made. Also included in the project are improvements to the preparation plant and coal storage systems. The project is not expected to be complete until the second half of 2009. Lincoln Contracting & Equipment Company (Stoystown, Pennsylvania) will be responsible for fabricating the beltline, as well as mechanical, electrical and labor services for its erection.

CONSOL Energy is also moving forward with construction of a new slope and 27,000 feet of overland conveyor at its Bailey coal mine in Wind Ridge, Pennsylvania. The Bailey coal mine is one of the largest underground coal mines in the U.S. producing 10.2 million tons of coal in 2006. Farnham & Pfile Construction Incorporated (Monessen, Pennsylvania) will be performing the conveyor erection starting this spring.

Together, these projects total more than $200 million in capital expenditures to implement. Both projects are being engineered by SEI Engineers Incorporated (Powell, Ohio).

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