Central Appalachia
As of December 31, 2011, we operated four mining complexes located in Central Appalachia consisting of five active underground mines, four of which are company operated and one that is contractor operated. In addition, we operated three company operated surface mines. For the year ended December 31, 2011, the mines at our Tug River, Rob Fork and Deane mining complexes produced an aggregate of approximately 1.3 million tons of steam coal and an estimated 0.7 million tons of metallurgical coal, and the underground mines at the Rhino Eastern mining complex, owned by the joint venture in which we have a 51% membership interest and for which we serve as manager, produced approximately 0.3 million tons of metallurgical coal. In addition, for the year ended December 31, 2011, lessees of our Elk Horn properties produced approximately 2.0 million tons of coal since our acquisition of Elk Horn in June 2011. As of December 31, 2011, we controlled an estimated 213.1 million tons of proven and probable coal reserves and an estimated 177.6 million tons of non-reserve coal deposits in Central Appalachia, exclusive of the reserves held by our joint venture. As of December 31, 2011, the Rhino Eastern mining complex, owned by our joint venture, contained an estimated 43.4 million tons of proven and probable coal reserves and an estimated 17.9 million tons of non-reserve coal deposits, consisting of premium mid-vol and low-vol metallurgical coal. The following maps outline the mines, preparation plants and loadout facilities that comprise our Central Appalachia operations:Tug River Mining Complex:
Our Tug River mining complex consists of property in Kentucky and West Virginia that borders the Tug River. As of December 31, 2011, the Tug River mining complex included an estimated 23.1 million tons of proven and probable coal reserves and an estimated 1.8 million tons of non-reserve coal deposits. Our Tug River mining complex produces coal from one company-operated surface mine. Coal production from this mine is delivered by truck to the Jamboree loadout for blending and loading. The Jamboree loadout is located on the Norfolk Southern Railroad and is a modern unit train loadout with batch weighing equipment. The Jamboree loadout is used primarily to process surface mined coal which is sold as steam coal to electric utilities. Rob Fork Mining Complex:
Our Rob Fork mining complex is located in eastern Kentucky and, as of December 31, 2011, included an estimated 24.5 million tons of proven and probable coal reserves and an estimated 14.9 million tons of non-reserve coal deposits. Our Rob Fork mining complex produces coal from company-operated surface and underground mines. The Rob Fork mining complex is located on the CSX Railroad and consists of a modern preparation plant utilizing heavy media circuitry that is capable of cleaning coarse and fine coal size fractions and a unit train loadout with batch weighing equipment. The mining complex has significant blending capabilities allowing the blending of raw coals with washed coals to meet a wide variety of customers’ needs. Deane Mining Complex:
Our Deane mining complex is located in eastern Kentucky and, as of December 31, 2011, included an estimated 39.5 million tons of proven and probable coal reserves and an estimated 5.6 million tons of non-reserve coal deposits. Our Deane mining complex produces steam coal from both company-operated and contract underground mines. The infrastructure consists of a preparation plant utilizing heavy media circuitry capable of cleaning coarse and fine coal size fractions, as well as a unit train loadout facility with batch weighing equipment capable of loading in excess of 10,000 tons into railcars in approximately four hours. The facility has significant blending capabilities allowing the blending of raw coals with washed coals to meet a wide variety of customers’ needs. Rhino Eastern Mining Complex:
Our Rhino Eastern mining complex is located in Raleigh and Wyoming Counties, West Virginia and, as of December, 2011, included an estimated 43.4 million tons of proven and probable premium mid-vol and low-vol metallurgical coal reserves and an estimated 17.9 million tons of non-reserve coal deposits. We have a 51% membership interest in, and serve as manager for, the joint venture that owns the Rhino Eastern mining complex. Pursuant to the terms of a coal purchase agreement entered into under our joint venture agreement, an affiliate of our joint venture partner, Patriot, controls the amount and terms of sales of the coal produced from the Rhino Eastern mining complex. Our Rhino Eastern mining complex produces premium metallurgical coal from company-operated underground mines. Raw coal is trucked from the mine to a facility owned by our joint venture partner to be sized, washed and shipped by truck or via one of two rail loadouts, located on the CSX Railroad and the Norfolk Southern Railroad. Elk Horn Coal Leasing:
In June 2011, we completed the acquisition of 100% of the ownership interests in Elk Horn and, as of December 31, 2011, included an estimated 117.5 million tons of proven and probable coal reserves and an estimated 155.3 million tons of non-reserve coal deposits. Elk Horn is a primarily coal leasing company located in eastern Kentucky that provides us with coal royalty revenues.