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• EFCI currently obtains approximately 60 percent underground recovery of <br />mineable reserves and preparation plant recovery averages approximately <br />65 percent. <br />Because EFCI believes in responsible stewardship of our resources and <br />benefits from maximum recovery and utilization of these resources, it will <br />continue to maintain effective operational control of coal recovery and <br />will continually seek new ways of enhancing overall recovery. <br />CONTRACT AND COAL COMMITMENTS <br />Southfield provides a high quality washed coal product with relatively <br />high BTU values to a variety of small industrial, institutional and <br />utility customers. The mine currently supplies five (5} coal customers <br />under short-term supply contracts with coal being shipped up to 300 miles <br />from the mine. Mine production is marketed by EFCI which is continually <br />evaluating new coal sales opportunities and working to maintain strong <br />• relationships with existing coal customers. <br />COAL PREPARATION AND LOADOUT EACILITIES <br />The run-of-mine coal product from the Southfield Mine has a relatively <br />high ash content due to mineral inclusions and partings within the coal <br />seam. In order to provide a saleable, high quality coal product, the run- <br />of-mine coal is run through a heavy media wash plant where the coal is <br />crushed, separated from the mineral materials and dried to produce the <br />final coal product. The heavy media preparation plant is located at the <br />mine site and in addition to the final coal product produces coarse and <br />fine refuse products. <br />The washed coal product is transferred by conveyor from the heavy media <br />preparation plant to either an open stoker coal stockpile containing <br />approximately 1,000 tons, or to the main open product stockpile which can <br />contain approximately 4,500 tons. Coal from the stoker stockpile can be <br />. loaded into small rear dump trucks for delivery within the local area. <br />EFCI utilizes a reclaim tunnel under the main coal stockpile to load <br />conventional tractor-trailer units which haul the coal approximately ten <br />7 <br />