New Coal Mine Plans for Cline Resource Would Almost Double Illinois Coal Production

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Researched by Industrial Info Resources (Sugar Land, Texas). Privately-owned Cline Resource & Development Company (Beckley, West Virginia) is developing three coal mines in Illinois, which if constructed will produce a combined total of about 28 million tons per year, almost doubling current state production figures. Total cost to build the three mines will exceed $700 million.

Construction is well underway on the first mine in Williamson County, Illinois. The Pond Creek No. 1 mine is located east of Johnston City, Illinois. The mine will produce 7 million tons per year and will be operated by Cline Resource subsidiary Mach Mining LLC. Construction of a rail spur to the site has been completed and construction of the prep plant is underway. The company plans to begin mining operations by the fourth quarter of 2006 and ramp up to the full 7 million tons a year capacity a year after that.

In Montgomery County, Cline Resource’s subsidiary, Colt LLC, is developing a 7 million ton per year underground coal mine. The company plans to submit the mine permit by the end of 2006. The siting of a longwall mine in the county is receiving opposition from anti-longwall mining groups, which could jeopardize development.

A third mine, being developed by Cline Resource’s subsidiary, Sugar Camp Energy LLC, is envisioned as a 14 million-ton per year mine with two longwall mining machines. Permitting is underway for the project. If built, the mine will be the largest underground coal mine in the U.S. Construction of this mine could start in 2007, if mine permits are received by late 2006. Production start-up is estimated to be in 2009 on that schedule.

Cline Resource is developing integrated gasification combined cycle (IGCC) coal-fired mine-mouth power projects at the Williamson and Montgomery county mine sites, which if constructed will cost an additional $2 billion, increasing the amount of investment for the three mines and power plants to about $2.7 billion. The success of the coal mines is not tied directly to the construction of the IGCC plants, as growing regional demand for coal is leading to new mines being constructed.

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