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OPERATION PLAN: Estimated Area for Life of Mine <br />Introduction <br />This section describes the general plan for mining activities to be used at the New Horizon North <br />(NHN) Mine from 2013-2020. The mining methods, including overburden and coal removal, <br />coal supply agreement, and mining equipment are described. The total disturbance area is <br />approximately 279 acres over the life of the mine. Map 2.05.2-1 shows mine plan with estimated <br />life for the NHN Mine. <br />Operation Description / Production Methods and Equipment <br />Mining at the NHN Mine currently utilizes surface mining methods. The primary coal seam to be <br />recovered is the Lower Dakota seam; however, the Upper Dakota seam will be recovered if it is <br />thick enough and of sufficient quality. Mining cuts will have a general east -west orientation and <br />progress northward. <br />NHN Mine development activities began in 2012. These activities included construction of <br />surface facilities such as mine access, haul roads, warehouse, office, and water wells. Surface <br />facilities which are not yet constructed may be built at a later time. The mine development also <br />encompassed the initial opening of the coal face at the northern boundary of the old NH mine. <br />During excavation of the initial boxcut, a buffer of unmined coal and overburden was left in <br />place at the location of the old Peabody Highwall. The purpose of this "buckwall" is to maintain <br />a buffer between the mine spoils from previous surface mining activities and the current active <br />mining pit to provide a safe working environment in the active mining area. Once mining at the <br />existing NH2 Mine was completed in mid -2013, heavy mining equipment was relocated to the <br />NHN Mine. <br />NHN Mine excavation is performed by dozers, loaders, trucks, and a shovel. The sequence is to <br />first remove topsoil with dozers, a shovel, and loaders loading trucks which take the material to <br />designated stockpiles or to regraded area behind the pit for reclamation. Soft upper overburden <br />may be removed by a shovel or loader and trucks and taken to a designated stockpile or to the pit <br />for backfilling. If taken to the pit for backfilling, dozers regrade the spoil overburden to approved <br />post mining topography. Lower overburden is usually cast blasted where approximately 25% of <br />the overburden is cast into its final position in the backfill. The remaining shot overburden is <br />either pushed with dozers into its final position in the backfill or loaded with a shovel or loader <br />and taken to a designated stockpile or placed behind the pit for backfilling. The exposed coal is <br />loaded either from the pit or stockpiles into over -the -road haul trucks which take the coal to the <br />nearby Nucla Station power plant operated by Tri-State Generation and Transmission (Tri-State). <br />The anticipated mining schedule for each area where mining will occur is shown graphically on <br />Map 2.05.2-1 and a cross section of the typical pit is shown on Map 2.05.3-1. <br />Section 2.05.2 Page 1 April 2016 (PR -01) <br />