- Third-largest eastern U.S. coal producer
- Began mining operations in 1971
- Has a high percentage of sales tied to long-term contracts
- Sold 35.2 million tons of coal in 2012
- Produces a diverse range of steam coals, satisfying a broad range of customer specifications
- Operates eleven underground mining complexes in five states - Illinois, Indiana, Kentucky, Maryland and West Virginia and also operates a coal-loading terminal on the Ohio River at Mt. Vernon, Indiana. We are constructing a new mine in southern Indiana and are purchasing and funding development of reserves, constructing surface facilities and making equity investments in White Oak's new mining complex in southern Illinois
- Mining operations are near major utility generating plants
- Trades tax-advantaged, high-yield common units on the Nasdaq National Market under the symbol "ARLP"
- As one of the coal-producing industry's only publicly-traded master limited partnerships, ARLP has increased Alliance unitholders’ cash distributions for 19 consecutive quarters (as of 12/31/12), essentially tripling payouts over the past eight years
Our coal reserve base is significant enough to preserve the Partnership's continuity over the long-term. The coal reserves reported by Alliance are those that we believe can be economically and legally extracted or produced. As of December 31, 2012, ARLP had approximately 919.5 million tons of proven and probable reserves. Approximately 204.9 million tons of those reserves, located in Hamilton County, Illinois, are leased to White Oak and are not reflected in the table below.
Our reserve estimates are based on geological data that is analyzed by Alliance's staff of geologists and engineers. The data is gathered through extensive and ongoing exploratory drilling and in-mine channel sampling programs.
Additionally, our criteria adhere to standards as defined by the U.S. Geological Survey.
The following table defines Alliance's coal reserves as of December 31, 2012, by mining complex.
Proven & Probable Reserves
|(Tons in Millions)|
|Illinois Basin Operations|
|Hopkins (underground) (KY)||29.7|
|Hopkins (surface) (KY)||7.8|
|River View (KY)||127.2|
|Gibson (North) (IN)||18.5|
|Gibson (South) (IN)||66.9|
|Central Appalachia Operations|
|MC Mining (KY)||12.0|
|Northern Appalachia Operations|
|Tunnel Ridge (PA/WV)||95.7|
|Penn Ridge (PA)||56.7|
Our coal is transported to our customers by rail, truck and barge. As is customary in the coal industry, the customer pays the cost of transporting coal from the mine to their plant or delivery point. Approximately 52.3 percent of our 2012 sales volume was initially shipped from the mines by rail, 13.1 percent by truck, and 34.6 percent by barge. In 2012, the largest volume transporter of our coal shipments was the CSX railroad, which moved approximately 33.0 percent of our tonnage over its rail system. The very favorable geographic locations of our mines help minimize costs for our customers.