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THE N.~rW.-st.-r <br />JHARIA <br />ENVIRONMENTAL PROJECT <br />Norwest has been awarded a <br />contract by Bharat Coking Coal <br />Limited (BCCL), to prepare an <br />Environmental Management Plan for <br />the Jharia Coalfield located in the <br />Indian state of Bihar. The project is <br />funded by th orld Bank and will <br />be com i June 1996. <br />The rea is characterized by <br />multiple eam of coal which have <br />been fined f over 100 Vear&, <br />Ily by un roun me <br />aI is prone t <br />lion and, over i <br />uncontrolled fires 'n {i <br />irkings have bec e a <br />In addition dest <br />large mounts of hi quality coking <br />coal, ese unc trolled fires have <br />signific ntly i pacted the environ- <br />ment, rimaril by emitting large <br />quantitie of poisonous gases <br />(sulphur iox' e, carbon monoxide, <br />The uncontrolled fires have been <br />recognized by both BCCL and the <br />World Bank as being a major <br />problem of the highest priority. To <br />ensure that the latest and most <br />applicable technology be applied to <br />resolve the problem, BCCL and the <br />World Bank elected to award <br />separate environmental and fire <br />control contracts. nHs <br />NOREAST! <br />Consistent with Nonvest's con- <br />tinuing effort to provide timely, cost <br />effective service to an ever-widening <br />range of clients, we have established <br />an office in the Eastern United <br />States. In addition to the Salt Lake <br />and Calgary offices, we now have an <br />office located within the Pittsburgh, <br />Pennsylvania area. This office is <br />managed by Art <br />Sullivan, our Vice- <br />President of East- <br />ern operations. <br />With Norvvest's <br />use of advanced <br />communications <br />and computer <br />technology, and <br />the support of our <br />Salt Lake City and <br />Calgary staff, we can provide the <br />same quality service that has been <br />available to our western clients. It has <br />already become apparent, due to the <br />initial response from both old and new <br />clients, that a need has existed for <br />Norwest in the East. Art can be <br />contacted at (412) 222-5715. nes <br />"MINER" MOVES <br />IN THE POWDER RIVER BASIN <br />~uring late 1993 and 1994, Norwest <br />was directly involved with not "miner", <br />but major mine sales in the Powder <br />River Basin (PRB). Kennecott Energy <br />Company was created by its parent <br />Kennecott Corporation 'and promptly <br />jumped into the coal business in a big <br />way by purchasing the interests of <br />Nerco Coal Company including <br />Antelope and Spring Creek mines and <br />a half interest <br />~~a~ in the Df:cker <br />~t Mine. They also <br />~y' P Q purchased the <br />O Cordero Mine <br />from Sun Oil. The <br />combined 1993 production from the <br />four mines was approximately 40 <br />million tons. They have since become <br />a key player and major competitor in <br />the PRB. Not content with these <br />acquisitions, Kennecott purchased the <br />Colowyo Mine in Colorado in late 1994 <br />(Norwest assisted in this effort also). <br />The PRB continued to move and <br />shake in 1994 when Peabody's <br />Powder River Coal Company (PRCC) <br />purchased the Caballo and Rawhide <br />mines from The Carter Mining <br />Company. These two mines produced <br />25 million tons in 1993. Norwest was <br />involved with both these acquisitions <br />during the due diligence process. Our <br />role mainly involved reserve verifi- <br />cation, fair market value of assets (for <br />Peabody) and identification of poten- <br />tial fatal flaws in permit status, <br />reclamation limitations, etc. With <br />Phase I of the Clean Air Act <br />Amendment now in effect, there is <br />greater demand for cheap, low sulfur <br />coal from the PRB. We can probably <br />expect more miner moves there in <br />the years ahead. cMs <br />WORLD CLASS <br />ROCKY MOUNTAIN COAL <br />For many years underground coal <br />mining struggled to achieve any <br />significant gain in productivity and <br />cost reductions. However, in the last <br />few years this has changed <br />dramatically with successful, safe <br />applications of longwall technology. <br />This has been particularly true in <br />the Rocky Mountain states of the USA <br />where several single longwall mines <br />have achieved consistent levels of <br />world class productivity. The figure <br />below shows the average productivity <br />of three of the top western US mines <br />in comparison to the average <br />productivites of all types of coal <br />mining from several countries in the <br />world. The three coal mines used in <br />this western US average are: Coastal <br />Skyline #3, Cyprus Amax Twentymile, <br />and Arco Coal West Elk. <br />Plans announced by these firms <br />include longer panels (up to 4 miles or <br />6,400m), larger mainline belts (7ft. or <br />2.1 m wide), and higher capacity <br />longwall face equipment. <br />Personnel at Norwest have <br />assisted in the planning and <br />implementation of longwalls at most of <br />the western high-capacity mines. In <br />[he last year we have been, and <br />continue to be, involved with the <br />exploration, planning, financial/risk <br />analysis, and daily operations for <br />several world class properties and <br />operating mines all over the world, <br />including Canada, Chile, Colombia, <br />Indonesia, Mexico, the UK, and <br />Colorado, Kentucky ,Utah, and West <br />Virginia, in the USA. Bonn <br />-2- <br />