Two Indiana coal companies have received state regulatory approval for new or extended mining operations that could produce an additional several million short tons of high-sulfur steam coal annually for the US electric utility market, a state official said Thursday.
Peabody Midwest Mining's Somerville surface mine in Gibson County currently produces about 2.6 million st of high-sulfur coal annually.
Under a permit approved this month by the Indiana Department of Natural Resources' Division of Reclamation, Peabody would produce an additional 11.2 million st over the next several years from Somerville, said Eric Langer, a permit supervisor for the division.
Peabody Midwest Mining, a subsidiary of St. Louis-based Peabody Energy, formerly was known as Black Beauty Coal. Peabody acquired Black Beauty and its southern Indiana mining operations more than a decade ago.
According to Langer, Peabody has applied for a Section 404 Clean Water Act permit from the Army Corps of Engineers for the Somerville extension. "They are actively seeking a Corps permit," he said, and possibly could get it later this year.
Peabody officials did not return phone calls Thursday seeking comment on the ongoing Corps' permitting process.
United Minerals, meanwhile, has been approved for a permit for its new Seven Hills surface mine south of Lynnville in Warrick County, Langer said. He said the permit covering 2,351.2 acres will allow United to produce about 2.5 million st annually from Seven Hills, recovering a total of 13 million st during the life of the mine.
Production is not expected to begin soon, however, as the permitted acreage "has a major wetland on it" and United has not yet submitted a CWA application to the Corps, he said. United officials also were unavailable for comment.
United largely serves as a contract miner for Peabody Energy in southwestern Indiana. About a year ago, United unveiled plans for its new High Point surface mine in Warrick County that would produce about 1 million st a year for the US electric utility market.
Also, Solar Sources, a privately owned Indianapolis-based coal producer, is seeking DNR approval for an amended permit for its Antioch surface mine in Daviess County.
The 162.3 acres Solar wants to add would allow the company to get an additional 500,000 st a year, or a total of 2.5 million st, from Antioch, Langer said.
Antioch produced 991,309 st of high-sulfur steam coal in 2013 and 907,377 st in 2012, US Mine Safety and Health Administration figures show.
Langer's office is expected to rule on the Solar application later this year.
