RYAN ANNOUNCES $11.6 MILLION IN COAL INFRASTRUCTURE GRANTS
FOR IMMEDIATE RELEASE
May 1, 2000
p>SPRINGFIELD -- Governor George H. Ryan today announced 26 grants, worth nearly $11.6 million, to improve coal production and transportation systems in Illinois.
The grants are expected to leverage $74 million in private spending for equipment upgrades, facility expansions, road improvements, and other infrastructure investments aimed at improving the quality of Illinois coal and making it more cost competitive.
"The Illinois coal industry is an essential part of the Illinois economy, especially in the southern portions of the state," Ryan said. "This program provides the incentives needed to rebuild the industry for today's marketplace."
The Illinois Coal Infrastructure Program is operated by the Department of Commerce and Community Affairs' (DCCA) Office of Coal Development and Marketing. With this announcement, more than $33 million in state funds have been committed to the Illinois Coal Infrastructure Program since the program began in Fiscal Year 1997. The coal grants awarded to date have leveraged $200 million in private investment by Illinois coal producers, transporters and loading terminals.
"The Coal Infrastructure Program has been successful in encouraging coal producers and support industries to reinvest in Illinois," DCCA Director Pam McDonough said. "This is just one more example of how we're working with the private sector to create new economic opportunities and jobs in Illinois."
A list of grant recipients is attached.
COAL INFRASTRUCTURE PROGRAM GRANT RECIPIENTS
American Coal Company
- A grant of $900,000 to construct a channel crossing to allow expansion of the Galatia Mine into a new reserve area. This project will extend the life of the mine by 10 to 15 years.
Black Beauty Coal Company
- A grant of $885,000 to construct a new central preparation plant at the Big
Ridge Mine that will increase capacity by 33 percent, provide higher coal recovery rates
and reduce overall production costs.
City of Springfield, Dept. of Public Utilities
- A grant of $700,000 to install new coal processing and handling equipment for
the planned Riola #2 Mine. Additionally, a 110 car rail loop will be installed to service
the mine. This project will create 200 jobs.
- A grant of $241,000 to make repairs and improvements to the coal handling
system and pollution control equipment at the Lakeside and Dallman power
Consolidation Coal Company
- A grant of $80,410 to install a limestone blending system at the Lakeside
Power Station. This system is needed to meet sulfur dioxide emissions limits
while burning medium-sulfur coal.
Freeman United Coal Mining Co.
- A grant of $900,000 to increase the east longwall capacity and reduce future
development costs at the Rend Lake Mine. This upgrade will increase production
by 90,000 tons per year while reducing annual mining costs by $450,000.
Heartland Energy, LLC
- A grant of $900,000 to open a new area of its Crown III Mine located near
Farmersville, Illinois. This project will create 26 new jobs and increase production
at the Crown III Mine by 600,000 tons per year.
Perry & Jackson Counties
Jader Aggregates Group, LLC
- A grant of $656,000 to assist with the development of the new Razorback II
Mine near DuQuoin, Illinois. This project will create 18 mining jobs and 15
Kinder Morgan Energy Partners
- A grant of $500,000 to construct a planned coal recovery operation near Equality,
Illinois. Twelve jobs will be created.
Knight Hawk Coal, LLC
- A grant of $150,000 to increase coal blending accuracy and capacity at the
Cora Coal Terminal. This project will result in $250,000 in local construction
jobs and $1.25 million in purchases of Illinois-manufactured equipment.
Monterey Coal Company
- A grant of $500,000 to develop a planned fine coal and slurry recovery operation
at the Zeigler #11 Mine and its central cleaning plant. This project will create 13 new
jobs, increase production by 280,000 tons per year, and reduce slurry disposal at
- A grant of $154,000 to rehabilitate roof support along conveyor belt entries
at the Monterey No. 1 Mine. This project will eliminate a pending risk of a roof
fall on the beltline bringing coal to the surface.
Old Ben Coal Company
- A grant of $479,000 to rebuild and upgrade longwall mining equipment at the
Monterey No. 1 Mine. This project will improve the reliability and productivity
while reducing overall mining costs per ton.
Sugar Camp Coal, LLC
- A grant of $525,000 to make preparation plant modifications that will increase
plant yield by 2.3 percent and 92,000 tons/year.
- A grant of $154,000 for preparation plant modifications that will optimize the
coal recovery rate at the Eagle Valley Mine, improve quality, increase output and
reduce the quantity of refuse for disposal.
Turris Coal Company
- A grant of $800,000 for a planned expansion of coal handling and preparation
facilities at the Wildcat Hills Mine. This project will extend the life of the mine
and create approximately 110 mine-related jobs.
- Three grants totaling $500,000 for the planned purchase and installation of
slope conveyor and overland conveyor systems to transport raw coal from new
material handling site to the Elkhart preparation plant. Installation of the belt
eliminates the need for trucking approximately 3.6 million tons of raw coal through
neighboring towns. These projects support ongoing infrastructure improvements
at the mine to extend the life of the mine, increase mine production by 1.3 million
tons per year, and reduce mining costs by 10 percent.
Vigo Coal Company, Inc.
- A grant of $400,000 for equipment for a fourth mining unit at the Elkhart Mine.
The fourth unit will add 40 jobs and increase production by 700,000 tons.
Wabash Mine Holding Company
- A grant of $900,000 to assist with the planned startup of the new Friendsville
Mine in Wabash County. This new mine will produce 800,000 tons per year and
employ 38 miners.
- A grant of $102,400 to rehabilitate roofs along belt and haulage entries at the
White County Coal Corporation
- A grant of $12,000 to make preparation plant modifications at the
Wabash Mine that will increase the plant yield by 2 to 5 percent.
- Two grants totaling $239,600 to repair or replace key equipment at the
Wabash Mine that will result in productivity improvements.
- A grant of $950,000 to develop new production and support portals serving the
Pattiki Mine. This project will expand the coal reserve base by 71 million tons
and extend the life of the mine by 20 years.