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Virginia Conservation Legacy Fund buys coal mines, idles Pinnacle and uses new marketing model


Virginia Conservation Legacy Fund buys coal mines, idles Pinnacle and uses new marketing model

Report summary

On December 22, 2015, Cliffs Natural Resources exited the coal business by selling its two longwall operations, Pinnacle and Oak Grove, to an affiliate of Virginia Conservation Legacy Fund (VCLF). These mines, which were originally owned by US Steel, produce low-volatile metallurgical coal. Output from the two mines was down about 630,000 t in 2015 compared to the previous two years and the new owner idled Pinnacle at the end of the year.  Before the sale, Cliffs cut workforce at these mines by nearly half and while the layoffs translate into improved productivity and cost competitiveness in the short run, future viability of these mines will depend on how the new owner plans to operate the mines longer term and the success of their market strategy for offering carbon neutral coal.

What's included?

This report includes 2 file(s)

  • Virginia Conservation Legacy Fund buys coal mines, idles Pinnacle and uses new marketing model PDF - 253.19 KB 4 Pages, 0 Tables, 1 Figures
  • 2015 Productivity.xls XLS - 124.50 KB

Description

This Coal Insight report highlights the key issues surrounding this topic, and draws out the implications for those involved.

Participants, suppliers and advisors can use it to look at the trends, risks and issues within the coal industry and gain an alternative point of view when making decisions.

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  • Oak Grove coal quality has some advantages over Pinnacle
  • Previous adjustment by Cliffs led to improved productivity and costs
  • Other activities by VCLF
  • Bundling CO2 credits with coal from Federal mine.
  • New potential uses for reclaimed surface mines
  • Environmental compliance monitoring
  • Conclusion

In this report there is 1 table or chart, including:

  • Oak Grove coal quality has some advantages over Pinnacle
  • Previous adjustment by Cliffs led to improved productivity and costs
    • Pinnacle 2015 productivity by quarter (t/man/day)
  • Other activities by VCLF
  • Bundling CO2 credits with coal from Federal mine.
  • New potential uses for reclaimed surface mines
  • Environmental compliance monitoring
  • Conclusion
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