Mines & Facilities



We currently operate eight mining complexes in two operating regions: Illinois Basin and Appalachia.


Because we produce a diverse range of steam coals with varying sulfur and heat contents, we are able to satisfy the broad range of specifications required by our customers. The coal we produced in 2016 was approximately 15.2% low-sulfur coal, 63.8% medium-sulfur coal and 21.0% high-sulfur coal. We classify low-sulfur coal as coal with a sulfur content of less than 1.5%, medium-sulfur coal as coal with a sulfur content of 1.5% to 3%, and high-sulfur coal as coal with a sulfur content of greater than 3%.

In 2016, we sold 90.3% of our total tons to electric utilities, of which 100% was sold to utility plants with installed pollution control devices. These devices, also known as scrubbers, eliminate substantially all emissions of sulfur dioxide.


 

Our coal is transported to our customers by rail, barge, and truck. Depending on the proximity of the customer to the mine and the transportation available for delivering coal to that customer, transportation costs can be a substantial part of the total delivered cost of a customer's coal. As a consequence, the availability and cost of transportation constitute important factors in the marketability of coal. We believe our mines are located in favorable geographic locations that minimize transportation costs for our customers, and in many cases we are able to accommodate multiple transportation options. Our customers typically pay the transportation costs from the mining complex to the destination, which is the standard practice in the industry. Approximately 38.2% of our 2016 sales volume was initially shipped from the mines by rail, 42.5% was shipped from the mines by barge and 19.3% was shipped from the mines by truck. In 2016, the largest volume transporter of our coal shipments was the CSX railroad, which moved approximately 23.4% of our tonnage over its rail system.

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