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(Continued from page I )
<br />Several sources said the agreement could lead Cyprus Amax to
<br />finally install a longwall it has been considering for several years,
<br />They were divided, however, on whether a longwall would mine
<br />reserves in Indiana or in Illinois. At present, about one-d»rd of
<br />Wabash's production comes from reserves located in Indiana.
<br />Jerry Cross, Illinois secretary-treasurer oC the United Mine
<br />Workers of America, observed that from what he knew about the
<br />agreement, "it's a great thing for the Wabash mine."
<br />INDUSTRY'
<br />ADDINGTON BROTHERS DROP COAL OFFER;
<br />ADDINGTON RESOURCES TO SPLIT OFF MINING
<br />The Addington brothers have, at least (or now, ended their bid to
<br />buy the remaining mining assets of Addington Resources Inc.
<br />(ARI). In announcing the decision ARI founder f arty Addington
<br />said the coal properties lost value since he and his brothers firs[
<br />made the offer and that the parties were unable to agree on a new
<br />price.
<br />ARI president and CEO Kirby Taylor said the company still
<br />plans [o separate mining from its environmental operations, "to
<br />create a public company focused purely on waste management"
<br />He gave no details, but said the landfill business was going well.
<br />The Addingtons first made their offer March 1, after ARI had
<br />sold off some o((he most lucrative of its coal assets [o Pittston
<br />Coal Co. (3-6-95 Coal Week). Their first offer was to buy the coal
<br />and gold mining assets of ARI for theircommon stock "and other
<br />considerations."
<br />But since then, the mining assets (ell short of their expected
<br />value Addington said. "Some of those valuations, such az those
<br />established for the Addwest Minerals operations have not mate-
<br />rialized. They have not accommodated the projected profitability
<br />upon which the origi nal valuations were based; 'Addington said.
<br />ARI originally was constituted az a coal company comprised
<br />of a number of Addington hold ings including Addington Inc. and
<br />Addwest Mining. Over the years, the company evolved with [he
<br />addition oC a large land Fill division, the gold properties and its
<br />remote-controlled highwall mining system and a ciws fruit
<br />producer in the Central American country of Belize.
<br />Over the years, ARI has closed its Addwest coal operations in
<br />western Kentucky, and its Ohio operations. In 1994, it sold
<br />COAL WEEK
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<br />Addington Inc. to Pittston Coal, while retaining a few coal
<br />operations, which the Addingtons sought to buy.
<br />ETER LILLY NAMED PEABODY PRESIDENT;
<br />~NGELHARDT WIDENS FOCUS BEYOND U.S. COAL
<br />Peabody Holding Co. last week appointed Peter B. Lilly as
<br />president and chief operating officer in charge o(Peabody's North
<br />American coal operations. irl F. Engelhardt will continue as
<br />Peabody's chairman, but az group vice presidenl~of Hanson
<br />Industries, he will focus on noncoal U.S. and offshore"energy
<br />developments.
<br />The development marks Lil ly's rapid rise through the manage-
<br />mentranks a[ Peabody since joining the group in 1991, when he
<br />was named president of Eaztem Associated Coal Co. He' look
<br />EACC through the strikes of 1992 and 1993. In 1994 he was
<br />named to the newly-created position of executive vice president
<br />of western operations.
<br />Lilly's previous coal experience waz with Ker-McGee Coal
<br />Corp. where he rose from line positions at the Galatia mine in
<br />Illinois to president of the company. He holds a degree in engi-
<br />neering from West Point and an MBA from Harvard.
<br />Lil ly takes over a company in transition. Peabody is reducing its
<br />presence in the high-sulfur coal fields of the Illinois Basin, while
<br />increasing production in the West, particularly the Powder River
<br />Basin. There are exceptions: Peabody this year acquired ful I~control
<br />over non-union Patriot mining in western Kentucky and took aone-
<br />third interest innon-union Black Beaury Coal in Indiana.
<br />ZEIGLER WARNS AT SPARTAN, NO. 11;
<br />ONE MINE SEEN LIKELY TO CLOSE THIS YEAR
<br />Zeigler Coal Holding Co. haz issued WARN notices to employees
<br />ofitsSpartanandZeiglerNo.l I minesinsoulhemlflinois,saying
<br />it's doubtful both mines can continue in operation.
<br />Bill Patterson, general managerofZeigler's Randolph County
<br />H, operations, said market conditions for coal from both Spartan
<br />and Zeigler 11 "have deteriorated severely in the past year."
<br />Patterson blamed the Jan. I start of Phase 1 of the 1990 Clean~Air
<br />Act Amendments and "a cooler summer in 1994, coupled with a
<br />warm winter in 1995" for placing the two high-sulfur mines in a
<br />vulnerable position.
<br />It is "clear;' he added, that the market may not support both
<br />mines, which in recent years have had the bulk o(their tonnage
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