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
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