Mine No. 1 (White Oak Mine)

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This article is part of the Global Coal Mine Tracker, a project of Global Energy Monitor.
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Mine No. 1, formerly known as White Oak Mine is an underground coal mine, operated by Hamilton County Coal, LLC, a subsidiary of Alliance Resource Partners, producing 6.2 million short tons per annum, in Hamilton County, Illinois, United States.

Location

The map below shows the exact location of the White Oak Mine (now Mine No. 1) in Hamilton County, Illinois, United States.

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Mine Details

  • MSHA ID: 1103203
  • Start Year: 2014
  • Owner: Hamilton County Coal, LLC
  • Parent Company: Alliance Resource Partners
  • Location: Hamilton County, Illinois, United States
  • GPS Coordinates: 38.1702261, -88.6013872
  • Production (short tons): 6,298,997 (2018)[1]
  • Coal type: Bituminous (high-sulfur)
  • Mine Type: Underground
  • Equipment: Longwall
  • Number of employees:
  • Mineable Reserves: 545.8 million tons (as of 12/31/18) (300.8 million tons proven).
  • Mine Size: 7,700 acres
  • Status: Operating

Background

White Oak Mine (now Mine No. 1) is an underground mine located near the city of Dahlgren in Hamilton County, Illinois, in southern Illinois.[2]

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.[3]

Governor Pat Quinn announced approval of the White Oak mine on October 23, 2010. White Oak Resources invested more than $400 million in construction of the mine, which opened in fall 2014 with a projected annual production of 7.5 million tons of coal. At that time, White Oak Mine No. 1 was the first of four mines proposed for the area by White Oak Resources.[4]

White Oak CEO Mike Tracy said the company was 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.[5]

On Sep. 22, 2011, Alliance Resource Partners said it would invest $400 million to $525 million over three or four years in the coal-mining operation. The deal included coal producer Alliance taking an ownership stake in White Oak Resources. Alliance invested $69.5 million at closing, and committed $140 million to acquire coal reserves, which it planned to lease back to White Oak for royalty payments.

Alliance also committed up to $110 million to buy coal-handling facilities, and it planned to give White Oak up to $100 million in backstop financing for mining equipment. Alliance said the deal would add to earnings and distributable cash flow once mining production began.[6]

While initially owned by White Oak Resources LLC, Alliance Resource Partners acquired the mine in 2015 when it bought the entire equity interest in White Oak Resources. Upon acquiring the mine, Alliance Resource Partners renamed it Hamilton Mine No. 1.[7][8]

Articles and resources

Related GEM.wiki articles

References

  1. "EIA table 9 major US coal mines 2018" EIA.gov accessed June 2020
  2. Mines & Facilities: Illinois Basin Alliance Energy Partners, accessed July 2020.
  3. "Coal Association Investigation Sale Of Coal Mine Rights" Mining Exploration News, Dec. 25, 2008.
  4. 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.
  5. Paul Lorenz, "CEO: Third mine on drawing board" Mcleansboro Times Leader, September 17, 2008.
  6. "Alliance to invest up to $525M in coal project" AP, Sep. 22, 2011.
  7. "Alliance to acquire 100 percent of White Oak Mine" Evansville Courier Press, July 26, 2015.
  8. Alliance Resource Partners SEC Filing 10-K Annual Report U.S. Securities & Exchange Commission, accessed November 2019.