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Apri/ 1992 MR-19 Pneumatic Coal Drying lnstaGation • Pape • 1 <br />• INTRODUCTION <br />Energy Fuels Coal Inc (EFCn currently conducts underground mal mining and related coal <br />pro«ssing, loadout and rupport operations at the Southfield Mine looted approximately eight <br />mile south of Floren«, Colorado. The mine operates under a lifeof-mine mining and <br />reclama[ion plan which is the buffs 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, u amended). <br />Raw wal from [he mine contains mineral matter from inclusions and partings which must be <br />removed to obtain a saleable coal produtt. Coal processing involves wet gravity separation <br />pro«sses, resulting in elevated rurfa« moisrure levels for both coarse and fine coal products. <br />Elevated rurfa« moisture increases the unit weight of the mal resulting in inaeued <br />transportation costs. The increase in unit weight also adversely effects heating value u measured <br />in BTU/I-b. <br />Given the highly competitive nature of current coal markets, EFCI is cottstancly looking for and <br />periodically evaluates any options which may improve the quality of the coal product or <br />otherwise enhan« its marketability. EFCI re«ntly beanie aware of and hu pro«eded with <br />negotiations for installation of a prototype pneumatic coal drying rystem whiclt hu the potential <br />to deaeue transportation costs and enhance the delivered value of the Southfield coal product. <br />The rystem would be owned by the manufacturer, and EFCI would operate it under contrattual <br />• agreement. <br />The rystem 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 />disturban« area currently utilized for coal handling, storage and loading, with no additional <br />disturbance con[emplated. The rystem would accep[ coal feed from [he existing draw point for <br />the clean coal stockpile and discharge through a rurge hopper looted at the existing truck sale <br />installation. <br />The proposed pneumatic dryer installation would be looted in the SW 1/4, SW 1/4, SE 1/4, <br />S 19, T20S, R69W, 6th PM, u shown on the revised Mine Surfa« Fadlities Map, (Map 18). The <br />dryer installation would be accessed through the existing mine fadlities yard and stockpile area. <br />2.03 LE(iAl, FINANCIAL, COMPLIANCE AND RELATED INFORMATION <br />The proposed dryer installation would be entirely within the existing Southfield Mine permit <br />boundary so all legal, finandal, complian« and related information presented in Section 2.03 <br />of the existing approved EFCI Permit Appliation document would be fully appliable to [his <br />fadlity u well. <br />EFCI controls the lands where the dryer installation would be looted under a coal mining lease <br />and rurfa« use agreement with the Corley Company u documented in Settion 2.03.4 of the <br />• EFCI Permit Appliation document. Dryer installation would be consistent with the ezirting <br />lease and use agreement which gives EFCI full right of entry and operuion for all mining and <br />related activities. <br />ACZ Inc. • P.O. Box 774018 • Steamboat Springs, Colorado 80477 • (30318 79-6 2 60 <br />