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RE:"... With HVYW, Eugene performed a final R/S at the very end just to add insult to injury.
Let's see what happens here. If QMNM fails, maybe we'll see Eugene or his son pop up somewhere else and just maybe we can catch that one before the big spike."
I don't know anything about HVYW, and haven't taken the time to research it. Just out of curiosity, do you happen to know if HVYW was in BK before, during, or after Eugene's involvement?
TO ALL: FYI
Massey Energy Company completes acquisition of Mountaineer No2 Mine in Greenbrier County in West Virginia
Fri. October 03, 2008; Posted: 09:35 AM
Oct 03, 2008 (M2 EQUITYBITES via COMTEX) -- MEE | Quote | Chart | News | PowerRating -- Massey Energy Company (NYSE:MEE), a producer, processor and seller bituminous coal, declared on 2 October that acquisition of Mountaineer No2 Mine in Greenbrier County in West Virginia, including related mining permits, mine infrastructure and 200,000 tons of mid-vol metallurgical coal reserves, has been completed by the company. The company said it can restart the mine and bring on additional production almost immediately, operating it as part of its Green Valley resource group. This transaction additionally gives Massey direct access to the mine's 2m tons of mid-vol metallurgical coal reserves that the company controls on property adjacent to the Mountaineer No2 Mine, using the same mine infrastructure. Terms of the acquisition were not disclosed
RE: we have 3Q numbers coming out soon, a BK hearing, equipment update info, and current production numbers. yes, i know there's not much production going on, but it's hard to say how little exactly.
nd and all: here is what Patriot Coal released today. Patriot is one of the largest producers of Appalachian coal.
To read the entire release, go to:
http://phx.corporate-ir.net/phoenix.zhtml?c=216060&p=irol-newsArticle&ID=1205340&highlight=
Here is one exerpt from the release:
"Patriot Coal Corporation (NYSE: PCX) today provided an update on its 2008 third quarter production. The Company's volume of approximately 8.0 million tons was 1.4 million tons lower than expected for the quarter as a result of issues that are common to the Appalachian coal regions. The production shortfalls at Patriot's mines resulted from a shortage of skilled workers, difficult geologic conditions, downtime resulting from increased MSHA inspections, and delays in obtaining mining permits. Additionally, the scheduled longwall move in August at the Federal mine took longer than planned, and production shortfalls occurred at the Panther longwall mine due to adverse geology. Since operating costs include a high fixed cost component, lower production has a direct impact on EBITDA and net income."
nd, I believe you understand this, but some others who post here do not, so I provide this for their benefit and to back you up. It is important for all to realize that even the well-funded companies run into mining conditions beyond their control.
I'm with you, nd. I've been where the guys at the mine are, too. Equipment broken down. Bosses looking over your shoulder, wanting to know how soon it will be up and running again. Sure, you could do a band-aid job, patch it up, and get running again, OR, you could do it right and have a sustained run of coal.
Now, it sounds like some of the investors on this board are like the bosses, wanting answers to the same questions we got underground. It will be fixed when it's fixed. I want answers, too, but am willing to wait for my comrades-in-arms to come through.
I want to buy more stock, but EC's history makes me a little uncomfortable. Had it not been for the DD some have provided here, I may have bought more some time ago, and watched as it deteriorated in value.
I, too, believe something will become of the mine. I can't say for sure what will become of the company. JMHO.
RE: "Gwenco has estimated the waste percentage to be 50% in a BK Court filing.
Meaning, 2 tons of raw coal to make 1 ton of clean coal.
Actual number for July and August filed with the BK Court came to a 70% waste factor.
Meaning, it took 3.3 tons of raw coal to make 1 ton of clean coal."
Looking carefully at a copy of the purchase order to which you linked (http://i36.tinypic.com/2lt54ly.jpg), clean coal is defined as "Raw tons minus ash% minus 10%", with the product "capable of being washed to the following specifications: Ash: 7%; Sulfur: .70%; Vol: 33/35 ..."
That makes it roughly 1.2 tons of raw coal to equal one ton of clean coal, which is a more realistic number than 3.3 tons raw to one ton clean.
Now for some positive news about coal industry in general.
Here's to QMNM getting its act together and getting a piece of this pie! It can be done.
(Copy came via email from a friend, so I don't know who to credit.)
MINING LEADERS SEE POSITIVE OUTLOOK FOR COAL
LAS VEGAS, NEVADA - - - Senior mining executives yesterday described the state of the mining industry as positive both domestically and globally, as growth in the developing world continues to fuel demand for coal, minerals and the equipment needed to mine them.
That was the consensus from chief executive officers of U.S. coal, mineral and mining equipment companies here to attend MINExpo INTERNATIONAL®, the world’s largest mining exhibition. The quadrennial exhibition is hosted by the National Mining Association (NMA), the Washington, D.C.-based trade group for the U.S. mining and machinery industry.
“MINExpo ® 2008, which is our biggest show ever and sold out the fastest, is a confident statement about near-term conditions in our industry,” said NMA President and CEO Hal Quinn. “Our member companies expect U.S. coal exports to triple over the next two years, global demand for metals to increase more than 5 percent in each of the next 3 years, and world demand for mining equipment to increase by about 6 percent annually over the same period.”
Other mining executives expressed confidence in the durability of the current cycle, now in its fifth year. Market fundamentals are expected to yield record U.S. coal demand in 2008, continued strength in metals and minerals mined in the U.S. and another year of strong worldwide demand for mining equipment and machinery. Overriding higher production costs, an ailing domestic economy and slower growth in the global economy, said mining executives, is the fact that world coal and mineral production is still struggling to keep pace with demand from rapidly developing countries. Industry analysts expect global mining output to grow by almost 4 percent in 2009 and 2010.
Mining Equipment: Tim Sullivan, president and CEO of Bucyrus International, Inc. and chairman of MINExpo®, said his company’s products and services “continue to be driven by high international commodity prices and strong markets for commodities mined by Bucyrus machines.”
China, India and Brazil, among other nations, are feverishly building power plants and urban infrastructure that have sparked a boom in markets for coal, metals and related commodities. Mining equipment manufacturers are likely to keep order books full as they expand production to meet growing demand for shovels, trucks and underground machinery. U.S. mining equipment producers represent approximately one-fifth of the global market.
Coal: U.S. coal producers, increasingly responding to global conditions, see strong growth continuing into 2009 for exports of both metallurgical and steam coal. Coal has been the world’s fastest growing fuel in each of the past five years, as its share of the world’s electricity market is projected to rise to 44 percent in 2015 from 41 percent in 2005. “This is not a short-term market cycle,” said Mike Quillen, chairman and CEO of Alpha Natural Resources. “It is a rebasing of the value of Btus in a new energy-short world led by a growing global economy.”
Minerals and Metals: Markets for U.S. minerals and metals, including gold, copper and uranium, are also likely to remain strong even as commodity prices moderate from unprecedented highs. Industry executives and most analysts anticipate copper prices will rebound from a correction thanks to tight supply, a weak dollar and continued demand from China. Iron ore demand, which has climbed dramatically in recent years, may moderate from the spreading economic downturn. Demand for uranium is expected to increase to 325 Mlbs by 2025, up from 150 Mlbs today. Industry observers expect demand for potash, sulfate and chloride will climb 3 percent or better annually over the next few years.
“Looking forward, there are different opinions about how long we can expect to ride this super cycle,” said Rio Tinto Minerals’ President and Chief Executive Officer and NMA Chairman Gary Goldberg. “While the outlook may be gloomy for mature economies, it’s never been brighter for the developing world. From 2007 to 2010, China’s demand for copper, nickel, zinc and platinum is expected to double. In fact, Chinese manufacturers will soon account for more than half the global demand for a majority of these metals. We are also seeing the same growth trends for industrial minerals like borates, talc, potash and titanium dioxide,” he said.
GLTA
FWIW, A rep. from a company in the WV/E.KY area from whom we buy some products and I were talking yesterday about this mine, and he agreed to look into the operation for me. It might be a week or two before I hear anything definitive back from him, because we'll both be traveling to the MinEXPO in Las Vegas from 9/21-9/24. As soon as I do hear from him, or anyone else I run into in Vegas, I will post the info.
Sorry, but you're getting "reject" confused with "recovery" (you're not the only one, either).
I also looked at the contract, and what I read is that "Both parties have determined that the property to be mined...should yield no less than a 30% recovery durring full production."
Recovery is defined as the percentage of the coal taken out of the seam during the normal mining cycle. The type of mining employed here is called "room and pillar", which uses blocks of coal left in place to help secure the roof and overburden. Recovery percentages are used to calculate the tonnage taken out of a reserve block. In other words, if they have, for example, a 30,000,000 block of coal, at 30% recovery, they will be able to take 9,000,000 tons of coal out of the mine.
Reject, as your referred to in your post, is a percentage of the coal mined that does not burn. Rocks, mud, etc. That can range anywhere from 0-25%, depending on how good the miners are at getting only the coal out of the mine. So again, for example, they aren't that good, or can't do it because there's too much mixed in the coal (in-seam dilutions called partings), and they have a reject rate of 20%, then the sellable portion of the 9,000,000 tons (from above example) is 7,200,000 clean tons.
From my experience, they could get up to a 50-60% recovery, so the 30% is probably a worst-case scenario.
This link may help: http://www.uky.edu/KGS/coal/coal_mining.htm
Hope this clears up the recovery vs. reject confusion. GLTA
Thanks, Anvil.
Go to this link. Address at bottom.
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=32096586
Also, didn't we have a copy of the contract with Whitestar?
If so, could we see it again? TIA
And here is some more info:
http://www.uky.edu/KGS/coal/coal_mining.htm
RECOVERY: The ratio of coal that is taken from underground mining methods to the amount of coal that is left in place to hold up the mountain. In the link above, it states that "using this mining method normally results in a reduction in recovery of as much as 60 percent because of coal being left in the ground as pillars."
REJECT: The inherint impurities in the coal, along with impurities taken during the mining cycle that do not support combustion. Runs anywhere from 3%-10%.
Try running your numbers again with this knowledge.
Also in that article, longwall mining method is mentioned as more efficient, with up to 75% recovery. Notice that it says the machinery is much more expensive. Plus, the operator must have subsidence rights to the surface property since the integrity of the mountain is compromised by taking more of the coal. Don't think it'll happen at either of these two, as they are drift mines. (see illustration in linked article)
Ah, heck. We may never know the whole truth about EC and his gang, except that he stays in Super 8 hotels, but we may actually uncover who really shot JFK!
Have some legitimate concern about the company, but not about the market.
In case anyone is interested as to why coal, check out this link:
http://www.sec.gov/Archives/edgar/data/1376812/000095013408016155/c35266exv99w1.htm
Regarding:
http://messiestobjects.typepad.com/2008-09-10GwencoAugustOperatingReport.pdf
Any chance of supplying this report for the previous four months?
TIA
This is what you would have seen had the link worked. Copied directly off www.MSHA.gov website in the Data Retrieval System.
Current Mine Information
Mine ID: 1518316
Operator: White Star Mining Operator History for Mine ID: 1518316 Operator Name Begin Date End Date
White Star Mining 2/4/2008
General Mining LLC 2/12/2007 2/3/2008
Braxton Coal Inc 3/15/2006 2/11/2007
James H. Taylor Mining, Inc. 11/3/2005 3/14/2006
Taylor Mining, LTD 4/7/2004 11/2/2005
Saul Enterprises Inc 1/1/2001 4/6/2004
How do I use this information? Click Here
Opr. Begin Date: 2/4/2008
Mine Name: White Star #1
Current Controller: Everett D Hampton
Controller Start Date: 2/4/2008
Mine Status: Active
Status Date: 7/24/2008
Mined Material: Coal (Bituminous)
Type of Mine: Underground
Location: Pike County, KY
Address of Record: 3550 Little Robinson Creek P.O. Box , Virgie, 41572
Also, I don't know who did the maintenance work - I suspect the White Star crew did it. I do know that big companies like Peabody, Consol and Massey have to plan that far in advance to get new or remanufactured equipment delivered to them on time, and as you would expect, they'll be at the top of the list in terms of priority ($$$). So, one can only imagine what a small operator under BK would have to do.
KOP:"This makes no sense at all. You are saying that this repair company is booked solid for the next 2 years and Quest got them to perform their much needed repairs the last two weeks at the drop of a dime?"
What I said was that the manufacturer/rebuilder was booked solid for 2 years, so they would have to look to some other way of getting the repairs accomplished quicker, like doing it themselves. I did not say "Quest got them to perform their much needed repairs the last two weeks at the drop of a dime".
Could also be that they found they needed additional parts once they started repairs; parts that have a longer lead time for delivery, like weeks instead of days. Not an uncommon occurance.
Plus the biggie: if the parts suppliers and other vendors know the mine is working under BK, they're probably selling parts to them COD. They'll only deliver to the mine if they know there's a check waiting there for them. No check, no parts. No check, no welding rods. No check, no roof bolts. No check, no toilet. No mining supplies, no coal production.
Make sense now?
Here is a link to public info on the mine. No phone #, but it shouldn't be that hard to find.
http://www.msha.gov/drs/ASP/BasicMineInfostatecounty.asp
As far as issues raised concerning upgrades for higher production, it really doesn't surpise me. Not happy about it either. However, just for the sake of comparison, the company that manufactures/rebuilds/repairs the continuous mining machine is booked solid until the fourth quarter of 2010.
To get a slot in their production schedule means, right now, a customer would have to "buy" or "trade" with another company that has multiple slots. With all the increase in the mining industry, that is highly unlikely to occur, as companies are unwilling to give up their place in the queue. Therefore, they will have to wait their turn, or go about repairing/upgrading equipment themselves.
Look at it this way. If you need some work done on your car, you'd probably take it to a garage or dealer. If that place can't get to your car for another 30 months, I doubt you'd be able to wait that long, so you would look at other options, such as fixing it yourself in your own garage. It is unlikely that you'd complete the repairs in the same amount of time as the garage, but it beats the alternative.
This is the "law" that was broken. 2nd citation on the list:
30 CFR § 75.1712-6
Underground sanitary facilities; approved sanitary toilets; installation and maintenance.
(a) Except as provided in § 75.1712-7, each operator of an underground coal mine shall provide and maintain one sanitary toilet in a dry location under protected roof, within 500 feet of each working place in the mine where miners are regularly employed during the mining cycle. A single sanitary toilet may serve two or more working places in the same mine, if it is located within 500 feet of each such working place.
(b) Sanitary toilets shall have an attached toilet seat with a hinged lid and a toilet paper holder together with an adequate supply of toilet tissue, except that a toilet paper holder is not required for an unenclosed toilet facility.
(c) Only flush or nonflush chemical or biological toilets, sealed bag toilets, and vault toilets meet the requirements of this section. Privies and combustion or incinerating toilets are prohibited underground.
Yes, it is a law. Yes, it was probably broken. Big brother is watching out for the workers, no?
This is the "law" that was broken. 2nd citation on the list:
30 CFR § 75.1712-6
Underground sanitary facilities; approved sanitary toilets; installation and maintenance.
(a) Except as provided in § 75.1712-7, each operator of an underground coal mine shall provide and maintain one sanitary toilet in a dry location under protected roof, within 500 feet of each working place in the mine where miners are regularly employed during the mining cycle. A single sanitary toilet may serve two or more working places in the same mine, if it is located within 500 feet of each such working place.
(b) Sanitary toilets shall have an attached toilet seat with a hinged lid and a toilet paper holder together with an adequate supply of toilet tissue, except that a toilet paper holder is not required for an unenclosed toilet facility.
(c) Only flush or nonflush chemical or biological toilets, sealed bag toilets, and vault toilets meet the requirements of this section. Privies and combustion or incinerating toilets are prohibited underground.
Yes, it is a law. Yes, it was probably broken. Big brother is watching out for the workers, no?
Does look like a fitting location for a company trying to get out of BK. Keep the overhead low. I think I'd feel safer in the mine than in that area.
It's funny to me in that I've been reading posts on this board as to how EC is making a killing, yet his address is this building with bricked-in windows, and very few cars on the street. Maybe pictures were taken on a weekend. I just had a higher expectation, that's all.
You guys want a good laugh, type in the address for Quest Mining into Google Maps, and then pick street view.
Address is 18B East Fifth Street, Paterson, NJ 07524
Massey Energy Co. is QMNM's neighbor in the East KY hills. This is why I'm hanging on.
RICHMOND, VA.- - - Coal producer, Massey Energy Co. says strong global coal demand and high prices will produce a record year for the company.
Massey Chief Executive Don Blankenship told analysts yesterday, “Global demand for coal remains very strong and prices have remained at very high levels."
He added, "With continuing progress in our expansion efforts and prices in excess of our original plans, Massey is on track for another record year."
"As planned, our expansion work has intensified in the third quarter," Blankenship continued. "We are expanding or adding new mines at our Green Valley, Mammoth, Stirrat, Martin County, Edwight, Knox Creek, Progress and Nicholas Energy resource groups. As we said in our conference call with shareholders on August 1, these activities will likely make the third quarter the most challenging of the year. In addition, third quarter results will include a pre-tax charge of approximately $15 million associated with the tender offer of the Company's 6.625% senior notes in conjunction with our recent financing transactions. We expect fourth quarter results to be stronger, however, driven by increased coal shipments as well as more favorable timing of metallurgical coal shipments and new higher priced contracts phasing in, which will result in a higher overall average price per ton."
For the third quarter of 2008, Massey stated that it expects produced tons sold to be in the range of 10.3 to 10.7 million at an average price of $64.00 to $66.00 per ton.
Massey further stated that it still expects full-year 2008 results, excluding the litigation charge recorded in the second quarter, to be within the ranges of full-year guidance provided previously but with produced tons sold and average price per ton trending toward the lower end of the respective ranges.
Massey Energy Company, headquartered in Richmond, Virginia, with operations in West Virginia, Kentucky and Virginia, is the fourth largest coal company in the United States based on produced coal revenue and is included in the S&P 500 index. (Combined news reports)
Sorry, can't help. I'm no where near the the mine.
OK, I did a little research myself. You don't have to lecture me about coal. I'm third-generation in coal industry. However, if that article is as powerful as you made it out to be, wouldn't the numbers that immediately followed its release be on the rise rather than the decline, other than today. That's all I wanted to know. What is different today than a month ago. It's certainly not just that article's contents. Something else is going on.
Date Open High Low Close
07/21/08 0.020 0.021 0.017 0.018
07/22/08 0.019 0.019 0.017 0.019
07/23/08 0.019 0.023 0.019 0.020
07/24/08 0.022 0.022 0.019 0.021
07/25/08 0.021 0.021 0.019 0.021
07/28/08 0.020 0.020 0.017 0.018
07/29/08 0.018 0.023 0.016 0.017
08/13/08 0.014 0.014 0.013 0.013
08/14/08 0.013 0.013 0.012 0.012
08/15/08 0.012 0.012 0.011 0.011
08/18/08 0.011 0.011 0.010 0.011
08/19/08 0.011 0.011 0.010 0.010
08/20/08 0.010 0.010 0.010 0.010
08/21/08 0.010 0.010 0.008 0.008
08/22/08 0.008 0.008 0.007 0.007
This article is over a month old. Can anyone tell us what effect it had on prices when it was first released on July 21? Pedro, can you shed some light?
RE:The point was:
It will cost money to create Inventory.
QMNM has no money to create Inventory.
As of today, there is only one (1) Purchase Order calling for a maximum of 10,000 tons per month.
Which means QMNM can produce 10,000 tons per month and the revenue generated from the sale of the 10,000 tons will cover the 10,000 tons operating costs, with profits being paid to creditors.
QMNM can not use the profits of the 10,000 tons to produce Inventory because profits are earmarked to be paid to creditors; not to be used to pay for the Inventory.
A point to remember: mining coal is not quite the same as producing widgets in a factory.
Geological conditions can and will change, thus affecting productivity. The prudent thing to do is to mine as much coal as possible to the point of even stockpiling it, if necessary. There may come a time when they can use day 3's overproduction to cover days 6&7 underproduction. This is not meant to be a reflection on the work force. They have to mine the coal in the conditions they're dealt.
Most generally, if there is surplus coal on the ground, it can be sold.
RE: The company is issuing hundreds of million of shares.
And the PPS is dropping because the Insiders are dumping the hundreds of million of shares.
RE2: If the company was "dandy-dory" with potential as you all claim, the Insiders would not be dumping their shares!
Q: Have the shares been issued? Or only authorized?
Q2: Is it possible this is being done to scare off investors like us so they can get a bigger piece of the pie once an acquistion occurs?
Just curious as to anyone else's thougths. Like I mentioned earlier, this isn't my area of expetise.
I agree. My experience doesn't lie on the stock market side of the industry. I truly appreicate the posts here regarding the financials, and use that insight to help educate myself as well as to make informed decisions. Thanks to all.
I'd like to give you all a glimpse of where the coal mining industry is in today's world.
If you all remember, there were a number of bad accidents in the last 2-1/2 yrs involving mining. Some new laws have been added. The $ amount for the fines for non-compliance have almost tripled. Yet, we still are watching what this company is doing.
A friend of mine at another coal company (a BIG one) told me that he doubted that his company would ever open another mine themselves. This goes back to ENRON. Anyway, the coal company CEO mandated that, from the ENRON time forward, all new operations would only be considered with 3 qualified bids. That, my friends, takes a lot of time. And with a possible narrow window of opportunity, they could miss the boat. So, the stategy they then chose to follow was to search out and buy profitable operations, like Quest. Ones that are profitable now, and with an infusion of capital, could become even moreso.
All we need is for these guys to become profitable, and because of their product, and because of where they're located, they WILL be bought by one of the big guys. JMHO.
RE: Question: how many miners does a mine this size usually have underground at any one time? is it as little as three as posted elsewhere? or twenty? or what...
A: I have personally produced coal in the numbers they're talking about here with 4 other miners and myself. I have also produced less coal than they're talking about here with 13 others and myself. Geology and general mining conditions have a lot to do with production.
If the immediate roof above the coal is solid, and it's not making water, there's not much to it. Just cut it, load it, bolt it, and start over. Big numbers with few workers.
If the immediate roof above the coal is fractured, and it is making water, production slows down. In my example above with the 13 other workers, we would take a 10 ft. cut of coal, back out and wait for the roof to fall in, go back and finish the cut, so on and so forth. It was a long shift, but within a couple of days, the roof conditions changed, and we were back to good numbers.
My experience is that the immediate roof conditions will often change weekly (kind of like weather), but with competent advance core drilling, the operators know where the bad top and water is, and will map their plans accordingly.
RE: hi, do you know somthing about cedar grow and 3rd mine?
No, I do not. Only what I've read on this post so far.
What I can tell you is that starting a coal mining operation has a very high initial capital expense, because these machines are EXPENSIVE, even the used/rebuilt ones. Investors are very careful when backing coal operations, so you won't hear of too many that go belly up.
Give these guys a chance to succeed, and I think you'll be happy you did.
I am a mining engineer, with nearly 30 years experience in the coal industry.
I am waiting for this egg to hatch!
Unlike manufacturing, where you have a plant built to a specific size to house the equipment necessary to maximize output, coal mines have to develop, or "dig" their way into enough room to add equipment.
They're probably cutting five or six entries, or headings, each about 18-20 wide. A continuous miner is roughly 35 ft long by 14 wide. The shuttle cars are about 30 ft. long by 64" (NOT 64') wide. A roof bolting machine is about the same as the sc. Until they advance the coal faces to fit more equipment, don't be alarmed by the rate. The way it is now, it's like taking dancing lessons in an elevator - there just isn't enough room, yet.
Now that they have enough room for a 2nd sc, they can develop space for more equipment more quickly. And with that comes higher productivity.
The continuous miner can load a 5-ton shuttle car (sc) in a minute or less. The sc then hauls that load back to the belt to dump, and then returns to the miner for a refill. That cycle takes around 3 minutes, depending on how far the sc has to travel back to the belt. At this very conservative rate, 4 min./loaded sc, you'll get 15 sc's of coal per hour, or about 75 raw tons/hr.
Now, throw another sc into the mix, and instead of waiting 3 minutes before loading another car, it takes about 20 seconds for the sc's to switch places. This minimizes the cycle time (not to be confused with down time), and we'll probably see nearly double the production numbers.
For the sake of this example, it would be around 25 sc's of coal per hour, or about 125 raw tons/hr. Add a third sc, and efficency is maxed. Can't effectively cycle more than 3 sc's behind the continuous miner.
You're exactly right, miser57. Premiums are paid on lower sulfur coal. What will really make this product attractive to end user is sustainable production. If they can't count on getting it from the mine as promised, they'll look elsewhere.
As far qualified miners, right again. In order for a new hire off the street, that person has to go through 40 hrs of training before going to work ug. Then, they have to be within sight of an experienced miner for 90 days before they're allowed to work alone. Hopefully, Whitestar has an experienced workforce.
A question you might want to consider: Would the CEO of a coal company actually divulge the true cost of getting the coal out of the ground? My guess is no. Or at least, I wouldn't do that. I'd bet his cost is closer to $30-40/ton.
The USGS table on Pike County, KY coal quality.
http://energy.er.usgs.gov/temp/1217680386.htm
Once again, the BTU is what the end user is buying, not total tons.
If PO for coal is ~$90/ton, then probably this is high BTU coal, commonly refered to as "met coal", used for production of steel. If so, that's why India and China want it. Once production levels are proven to be maintainable, it can bring a higher price. I've heard that met coal is bringing $100-120/ton.
Here is a link to spot coal prices. This coal is Central Appalachian (CAPP).
http://www.eia.doe.gov/cneaf/coal/page/coalnews/coalmar.html#cost
Enjoy this ride!
Ash range: 3%-9% in most commercial coal. Ash is the unburnable portion of coal, mostly sand and clay that was blown into bog/swamp millions of years ago, and now inherent in the coal seam. Not really factored into the raw coal/clean coal definition. It is factored into BTU calculation.
Raw coal is run-of-mine coal (ROM), comprised of: coal, in-seam dilutions, or partings, such as rock, mudseams, fireclay, etc., that, if not removed, lowers the BTU value of the end product. Once all, or at least most of, that other non-burning material is washed/cleaned from the ROM coal, it's value to the marketplace increases. Whatever they contractor can do to minimize the "trash" in the ROM coal, the less costly it will be to wash/clean the coal, thus further increasing the value. Typical cost for cleaning coal is $2 to $3/ton
Important thing to remember here is that the profit lies in selling BTUs, not tons of coal.
Generally speaking, when a mine is performing a lot of rehab work, they'll have a machine to use just for rehab (usally a "beater", or one that already has a bunch of tons on it). Cutting down rock is a lot harder on the machine than cutting coal, so they won't want to put the better of the two into the rehav. They can also use the beater to load out roof falls, and in those areas, they'll need to re-bolt the top, which is where a good portion of those 30,000 roof bolt are used.
Once they're finished with rehad and are ready for production, they park the "rehab" machine, and put the good one in the coal. Thus the spare machine. If the rehab looks to be finished, they can bring the spare up to snuff, and have it ready to go into another production area, similar to what Cedar Grove will do.
Hope this has helped.
From the look of the pictures, if they want to load the coal they need to, replacing the slope belt head and tail would be necessary.
Running coal is the easy part of this project, because it's done with machines. Most of the rehab work is just pure, backbreaking labor. Once they start producing, you can pretty well count on it continuing, or they'll be back to the manual labor part of it. And knowing how miners think, they won't want to do that.