Alliance Resource Partners Approves Mine Opening

Alliance Resource Partners LP approved the opening of a new mine for the immediate development of ARLP’s Tunnel Ridge reserves.
The Tunnel Ridge reserve area encompasses about 9,400 acres of land located in Ohio County, W.Va. and Washington County, Pa. and includes about 70.5 million tons of high-sulfur coal in the Pittsburgh No. 8 coal seam.
Total capital expenditures to develop the Tunnel Ridge mining complex are estimated in the range of $265 to $285 million, excluding capitalized development and interest costs, over the 2008-2010 time frame. ARLP is increasing its estimated 2008 capital expenditures to a range of $220 to $240 million to include newly authorized capital for the development of its Tunnel Ridge mine.
ARLP will develop Tunnel Ridge as an underground longwall mining complex employing as many as 300 workers by the end of 2010.
ARLP expects to begin longwall mining operations at Tunnel Ridge during the second half of 2010 and anticipates total coal sales from the mine that year in a range of approximately 1.5 to 3 million tons. Coal sales from Tunnel Ridge are expected to increase to a range of about 5 to 5.5 million tons in 2011 and 5.5 to 6 million tons in 2012.
ARLP has secured coal sales commitments for 30 million tons over 10 years to support the opening of the Tunnel Ridge mine and is experiencing strong interest from other customers for the remaining production from this operation, said Joseph W. Craft III, president and CEO.
“The decision to open the Tunnel Ridge mine enhances ARLP’s position in the strategically important Northern Appalachia region and compliments our continued growth in the Illinois Basin region,” he said.

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