Leer South coal mine

From Global Energy Monitor
This article is part of the Global Coal Mine Tracker, a project of Global Energy Monitor.
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Leer South coal mine is a proposed underground mine, operated by Wolf Run Mining, LLC, a subsidiary of Arch Resources, designed to produce 3 million tons of per annum, near Grafton, West Virginia, United States.[1]

Location

The satellite photo below shows the mine near Grafton, Taylor County, West Virginia, United States.

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Project Details

  • Owner: Wolf Run Mining, LLC[1]
  • Parent company: Arch Resources
  • Location: Grafton, Taylor County, West Virginia, United States
  • GPS coordinates: 39.341299,-79.976028
  • Mine status: Proposed
  • Start year: 2021[1]
  • Production: 3 million tons per year[1]
  • Mineable reserves:200 million tons[1]
  • Mine type: Underground[1]
  • Mining method: Longwall
  • Coal type: Bituminous (met coal)[1]
  • Mine size:26,000 acres
  • Mine depth: 550 feet

Financing

Arch Resources has set an overall budget for the Leer South mine of US$360 million-US$390 million.[2]

S&P Global has reported on how Arch has turned to the bond markets to help finance the project, with four recent issues: US$45.0 million in tax-exempt bonds through the West Virginia Economic Development Authority; a similar US$53.1 million offering in 2020; a US$54 million equipment financing facility in early 2020, and; a further US$135.0 million bond issue in October 2020.[3] Describing the 2020 US$53.1 million transaction as "a novel application of tax-exempt financing for the metallurgical coal industry," IJGlobal reports that Citi was the arranger of this bond issue.[4]

References

  1. 1.0 1.1 1.2 1.3 1.4 1.5 1.6 Arch Resources, Operations, Company Website, accessed July 13, 2020
  2. Hector Forster, Arch Resources presses on with 2021 startup at Leer South met coal mine, S&P Global, Jul. 29, 2020
  3. Taylor Kuykendall, Shut off from conventional capital, US coal companies seek creative options, S&P Global, Jun. 2, 2021
  4. Arch Resources Bond Facility 2020, IJGlobal, accessed Jun. 10, 2021