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COAL WEEK
<br />MARKE7W ATCH COAL PR/CES • TRANSACT/ONS • TRENDS
<br />Flooding in Ute Midwest was taking its toll last week, as sources Marwick mine (or delivery to the Paradise plant duough lone
<br />reported that several power plants had been isolated by flood 1996, at a price one source estimated a[ below S I9/t.
<br />waters in Missouri and that barge loadings from western mines
<br />have been disrupted by high water in the St. Louis area. The The Salt River Project has lumed to Trapper Mining for
<br />flooding so Far has been confined to the Northern Mississippi supplemental coal for its Craig station following close bidding
<br />River and sources said that barges lows originating on the Ohio under SRP's May I bid call (4-10-95 Coal Week). Although the
<br />and its tributaries are preceding fairly normally. Sources in the mine is about one mile from Craig and is owned in par by SRP,
<br />West said there is concern that continuing snowfall in the Trapper barely beat out two other bidders. On a centslmmBtu
<br />Rockies could cause serious0oodingi(thesummertumabruptly delivered basis, the competitiveo(fersweresaidtohavebeenin
<br />hot. Many of the western mountains now carry snow packs that the low 50s, with one offer in the low 60sand anon-competitive
<br />are above 200 percent ofnormal, the sources said, offer in the high 60s FOB mine. Despite its relationship with
<br />Offshore coal markets are healing up. Taiwan Power last SRP, Trapper can be outbid in this annual solicitation, an SRP
<br />week announced it would buy one 57,000 metric tonne cargo of source, said. SRP turned to Pittsburg & Midway s Edna mine
<br />U.S. coal shipped by international trader Glencore from the for 1991 su lemental coal and to Cy rus' Twent mile and/or
<br />West Coast. Taipower has along-term contract with Coastal
<br />States Energies, but the spot buy marks the fast such in recent
<br />memory. [n Europe, Ausualian producers BHP and Ulan said
<br />they have walked ow of supply negotiations with Dutch utility
<br />GKE, which said it will turn to U.S., South African and South
<br />American suppliers. Finally, Italian utility Ertel plans to call (or
<br />bids after i[ decided not to exercise options on i is 1995 contracts.
<br />CSX Transportation has issued a "confidential"coal solici-
<br />tation for 150,000 Uy of supplies, which it proposes to deliver to
<br />a independent power station beginning in 1999. The plant,
<br />identified only as being developed in the southeast by a utility
<br />subsidiary, would use the integrated coal gasi fication, combined
<br />cyclesystemofadvancedgeneratingtechnology. BecauselGCC
<br />uses advanced gas cleanup systems, the specified coal can
<br />contain up to 6 percent sulfur, although CSXT's preferred specs
<br />are 2-0 percent sulfur. Ash content could tun as high as 18
<br />percent and moisture as high as 33 percent, although 614
<br />percent is preferred, sources said. The term would be for three
<br />years with rollovers, or for a straight 15 years. Producers said the
<br />CSX contact is Anna Jordan at 904-366-5354.
<br />PP P Y
<br />Empire operations in 1992 and 1993.
<br />The Keystone-Conemaugh Project OlTice has purchased
<br />195,000 tons of coal off o(ihe spot market for delivery in June
<br />to the Conemaugh plant and 135,000 loos of spot coal for
<br />delivery in June to the Keystone plant.
<br />Torrential rain over a span of a few hours caused surface
<br />water runoff to Oood the skip shaft at Old Ben Coal Co.'s No.
<br />24 mine last week, idling production for at least a day. "We had
<br />a 6-inch rain in about two or three hours and i[ went over some
<br />ditches that were clogged up and got onto a roadway that washed
<br />toward Old Ben 24's skip shaft;' said Steve Ka[[enbraker of the
<br />federal M ire Safety and Health Administration office in Benton.
<br />Kattenbraker said water was about 80 fee[ deep in the skip
<br />shaft. "Being a skip shaft, the shaft is developed deeper than the
<br />coal seams themselves;' and that allowed Mine 24's entries to
<br />avoid major flooding and damage, he said.
<br />Dennis L. Stevenson resigned last week as president of
<br />Eastern Associated Coal Co. EACC spokesperson Garry Groves
<br />confirmed the resignation, saying that Stevenson had chosen to
<br />pursue other i nterests. Groves could not say when Stevenson had
<br />submitted his resignation, only that it was effective May 24.
<br />Until the Peabody Holding subsidiary finds a replacement, his
<br />duties will be idled by EACC chairman Sam Shifflet.
<br />New York Slate Electric & Gas has purchased 268,000 tons
<br />of coal for delivery during June, including 249,()00 tons of
<br />contract coal and 19,1100 tons of spot market coal. Off of its
<br />GreenidgeandGoudeycontracts,NYSE&Gpurchased 108,000
<br />tons of CONSOL Blacksville coal and 24,000 tons of Peabody
<br />Federal mine coal for delivery to the Kintigh station; off of its
<br />Kintigh contract, the utility purchased 3G,000 tons of CONSOL
<br />contract coal for delivery to the Greenidge station, as well as
<br />4,000 tons of spot coal. Other purchases include 36,000 tons of
<br />Bailey contract coal and 27,000 tons of B lacksv it le contract coal
<br />for the Milliken station, 18,000 ions of Peabody Federal caniract
<br />coal for Goudey, I I ,000 tons of spot coal far H ickl i ng and 4,000
<br />tons of spot coal far the lennisen station.
<br />TheTennessee V alley Authorityhas begun buying spotcoals,
<br />sources said. The agency has bought low-sulfur coal for delivery
<br />by CSX to the Widows Creek plant from at (cast two producers.
<br />One source said TV A's price for the coal had been surprisingly
<br />high at nearly $26/t FOB rail cars. As reported on page 3, TVA
<br />bought 1.5 million tons o(high sulfur coal from Peabody Coal's
<br />Fresh from acquiring Cenwal Mining and opening a new
<br />minein Kentucky, Andalex Resources, isshi(tingsomeoffices,
<br />and has appoi nted Ron Powers to be its first general manager of
<br />marketing. Powers will take up his duties in Louisville KY in
<br />July, said Andalex president Doug Smith. With Power's reloca-
<br />tion, Andalex will close its Denver office, and open one in Salt
<br />Lake City. Karl Yoder will move from Louisville to Salt Lake
<br />as manager of western sales, while John Passic will move from
<br />Genwal's former headquarters to Salt Lake to become director
<br />of marketing for Genwal Resources Inc. Darrell Mahone will
<br />retain his position as director of eastern sales in Louisville. On
<br />theoperating side, Howard Ratti of Andalex's Canadian parent
<br />Luscar Ltd. will become Andalex's new vice presideN of
<br />eastern operations, lacated in Madisonville KY. In an unrelated
<br />move, Chris van Bever has been named general counsel and
<br />secretary, Smith said.
<br />6 May 29, 1995 COAL WEEK
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