2020-06-10_PERMIT FILE - C1980007A ‎(2)‎

• Permit No: C1980007A
• IBM Index Class Name: Permit File
• Doc Date: 6/10/2020
• Section_Exhibit Name: 1.0 Introduction
• Media Type: D
• Archive: Yes

West Elk Mine

1.0 INTRODUCTION

Mountain Coal Company, LLC (MCC) operates West Elk Mine, an underground coal mine, on
Federal and fee coal leases located in Gunnison and Delta Counties, Colorado, two miles east of
Somerset, Colorado (Figure 1). The lease block locations are shown on Map 1. The lease blocks
are in Townships 13 and 14 South, Ranges 90 and 91 West, 6th PM. Mountain Coal Company,
LLC, a Delaware Limited Liability Company established in March 1998, is owned 100% by Arch
Western Bituminous Group, LLC, which is owned 100% by Arch Western Resources, LLC. Arch
Western Resources, LLC is owned 99.5% by Arch Western Acquisition Corporation and 0.5% by
Arch Western Acquisition, LLC, which is owned 100% by Arch Western Acquisition Corporation.
Arch Western Acquisition Corporation is owned 100% by Arch Resources, Inc. (formerly known as
Arch Coal, Inc.)

Operations at West Elk Mine have been conducted under several different names in the past.
Before 1991, West Elk Mine itself was known as the Mt. Gunnison No.1 Mine. Since the mine
opened, operations were conducted under the following names: Anaconda Minerals Company,
ARCO Coal Company (a Division of Atlantic Richfield Company), West Elk Coal Company, Inc.,
Arch Coal, Inc. and Mountain Coal Company. Many of the discussions, maps and exhibits included
in this document still reflect the other mine and company names. All the names are to be considered
synonymous with West Elk Mine and Mountain Coal Company, LLC.

When the original permit document was prepared, operations focused in the F Seam. However,
references to the F Seam resources and facilities throughout this application may also apply to the E
and B Seam resources and facilities.

Construction of West Elk Mine began in 1981. The mine began producing coal from the F Seam in
January 1982 from the B Seam in 1990, and from the E Seam in 2004. Construction of facilities has
been on-going to meet production needs.

Construction of the Sylvester Gulch Facilities Area, including two ventilation shafts, two mine
ventilation fans, a new electrical substation, new and upgraded roads, powerlines and support
facilities, began in the Spring of 1997. These facilities provide the increased power, access, and
ventilation requirements necessary to sustain underground mining operations.

West Elk Mine was originally envisioned to grow to 2.8 million tons per year production from the
F-Seam room and pillar operations. Soft market conditions slowed this expansion during the late
1980's and the mine produced approximately 0.5 million tons per year from the F Seam room and
pillar operations during this term. After longwall operations were established in the B Seam in
1992, production increased to over 1.4 million tons per year and is expected to reach 8.2 million
tons of clean coal per year.

To allow MCC to remain competitive under current market conditions, expansion into the E and B
Seams, was completed. These seams have high productivity capabilities with longwall technology.
Room and Pillar mining operations with continuous miners cannot compete with longwall mining
operations. Coal height and other conditions in the F Seam are not conducive to longwall mining.
The E and B Seams are, however, well suited to longwall mining methods.
1.0-1 Rev. 11/04- PR10; 05/20-MR445