- Second-largest eastern U.S. coal producer
- Began mining operations in 1971
- Has a high percentage of sales tied to long-term contracts
- Sold 40.2 million tons of coal in 2015
- Produces a diverse range of steam coals, satisfying a broad range of customer specifications
- Operates ten 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.
- Mining operations are near major utility generating plants
- Trades tax-advantaged, high-yield common units on the Nasdaq National Market under the symbol "ARLP"
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, 2015, ARLP had approximately 1.8 billion tons of proven and probable reserves.
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, 2015, by mining complex.
Proven & Probable Reserves
|(Tons in Millions)|
|Illinois Basin Operations|
|Hopkins (underground) (KY)||19.8
|Hopkins (surface) (KY)||7.8|
|River View (KY)||162.0|
|Hamilton County (IL)||557.0
|Gibson (North) (IN)||25.8|
|Gibson (South) (IN)||74.3
|MC Mining (KY)||8.1
|Mountain View (WV)||20.6
|Tunnel Ridge (PA/WV)||77.4
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 42.1% of our 2015 sales volume was initially shipped from the mines
by rail, 40.8% was shipped from the mines by barge and 17.1% was shipped from the mines by truck. In 2015, the
largest volume transporter of our coal shipments was the CSX railroad, which moved approximately 14.9% of our
tonnage over its rail system