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April 1992 MR-19 Pneumatic Coal Drying /nsta/lation • Page • 1 <br />INTRODUCTION <br />Energy Fuels Coal Inc. (EFCI) currently conducts underground coal mining and related coal <br />processing, loadout and support operations at the Southfield Mine located approximately eight <br />mile south of Florence, Colorado. The mine operates under alife-of--mine mining and <br />reclamation plan which is the basis for the approved mining permit (Permit No. C-81-014) under <br />the Regulations of the Colorado Mined Land Reclamation Board for CooaMining (CMLRB, <br />CRS 1973, as amended). <br />Raw coal from the mine contains mineral matter from inclusions and partings which must be <br />removed to obtain a saleable coal product. Coal processing involves we[ gravity separation <br />processes, resulting in elevated surface moisture levels for both coazse and fine coal products. <br />Elevated surface moisture increases the unit weight of the coal resulting in increased <br />transportation costs. The increase in unit weight also adversely effects heating value as measured <br />in BTU/Lb. <br />Given the highly competitive nature of current coal markets, EFCI is constantly looking for and <br />periodically evaluates any options which may improve the quality of the' coal product or <br />otherwise enhance its marketability. EFCI recently became aware of and has proceeded with <br />negotiations for installation of a prototypepneumatic coal drying system which has the potential <br />to decrease transportation costs and enhance the delivered value of the Southfield coal product. <br />The system would be owned by the manufacturer, and EFCI would operate i[ under contrattual <br />agreement. <br />The system concept is relatively simple, with drying occurring both during pneumatic transport <br />and in a final pneumatic cyclone dryer. The dryer would be installed within the existing <br />disturbance azea currently utilized for coal handling, storage and loading, with no additional <br />disturbance contemplated. The system would accept coal feed from the existing draw point for <br />the clean coal stockpile and discharge through a surge hopper located at the existing truck scale <br />installation. <br />The proposed pneumatic dryer installation would be located in the SW 1/4, SW 1/4, SE 1/4, f''~ / <br />S 19, T20S, R69W, 6th PM, as shown on the revised Mine Surface Facilities Map,'(Map 18). The (~ ~L~ <br />dryer installation would be accessed through the existing mine facilities yard and stockpile area. <br />2.03 LEGAL, FINANCIAL, COMPLIANCE AND RELATED INFORMATION <br />The proposed dryer installation would be entirely within the existing Southfield Mine permit <br />boundary so all legal, financial, compliance and related information presented in Section 2.03 <br />of the existing approved EFCI Permit Application document would be fully applicable to this <br />facility as well. <br />EFCI controls the lands where the dryer installation would be located under a coal mining lease <br />and surface use agreement with the Corley Company as documented in Section 2.03.4 of the <br />EFCI Permit Application document. Dryer installation would be consistent with the existing <br />lease and use agreement which gives EFCI full right of entry and operation for all mining and <br />related activities. <br />ACZ lnc. • P.0. Box 774018 • Steamboat Springs. Colorado 80477 • 13031879-6260 <br />