USIBELLI COAL MINE, Inc. - the Copper River Valley, Alaska

USIBELLI COAL MINE, Inc.
Wishbone Hill
Copper River Basin Energy Conference
March 2012
Usibelli Coal Mine
• Founded in 1943 by Emil
Usibelli
• Slightly more than 2 million
tons mined in 2011
• 6 customers in Alaska
• 3 export destinations
• Over 500 million tons proven
reserves in Healy
Usibelli Coal Mine
• Healy has one of the highest
per capita incomes in Alaska
• Many 2nd, 3rd and even 4th
generation employees
• UCM reclaimed mined lands
long before there were
reclamation laws
Four Generations
- Emil Usibelli and his
son, Joe Usibelli
- Joe Usibelli Jr. and his
daughter, Lexi Usibelli
Coal Facts
• The U.S. has 27% of the world’s coal
reserves.
• Alaska has 50% of the U.S. coal reserves.
• Railbelt, >1,000 years reserve at current
consumption.
Usibelli Coal Mine, Inc.
Alaska has half of the coal reserves in the United States.
Coal Effect on Electricity Rates By State
16.00
Source: US Energy Information Administration
2004 Data
HI
Average Retail Price
14.00
NY
12.00
CA
AK
10.00
8.00
TX
US
LA
6.00
CO
OR
OH
AL
WY
4.00
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
Percentage Coal Generation
70.0%
80.0%
90.0%
100.0%
Mining’s Importance in
Renewable Energy
Environmental Regulations
• Federal Government
– Surface Mining Control and Reclamation Act
of 1977 (SMCRA)
• State Government
– Surface Coal Mining Control and
Reclamation Act of 1983 (SCMCRA)
Surface Coal Mine Reclamation Act
Surface Coal Mine Reclamation Act
• Baseline Studies
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Cultural Resources
Wildlife
Vegetation
Geology
Hydrogeology
Soils
Wetlands
Surface and Groundwater Rights and Use
Climate and Air Quality Information
Land Use
Overburden and Interburden Assessment
Surface Water Hydrology
• Operation and
Reclamation Plan
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Life of Mine Plan
Topsoil Handling
Blasting
Pit Excavation
Coal Removal and Storage
Roads
Facilities
Fish and Wildlife Protection
Protection of the Hydrologic Balance
Air Pollution Control
Protection of Public Parks and Historic Places
Drainage and Sediment Control
Reclamation
Reclamation
Poker Flats Reclamation – August 2010
Wishbone Hill History
• Wishbone Hill is located about 10 miles north of Palmer
• Early Mining: 1916 to 1982
• Roughly 7 million tons mined from 18 mines
• 1983 - exploration drilling started on WBH project
• By 1992 all permits for Wishbone Hill mine
were obtained
• 14 million tons of surface minable coal identified
• The only Bituminous coal deposit on Alaska’s
road system
The Mining Process
Wishbone Hill Mining District
• Remove topsoil – set aside for use in restoration
• Controlled blasting to fracture rock
– Mitigation measures for noise & vibration
• Remove overburden – used according to mining and
reclamation plan
• Coal sent to wash plant
• Transported to customer
Drag Line
Shovel & Truck
Wishbone Hill Market
• JPower, Japanese based power company
• Generates 67 power stations throughout Japan
• Interest in bituminous coal
• JPower is interested in taking all output
from Wishbone Hill
Getting the Coal to Market
• Transportation Options
– Truck to Port MacKenzie
– Truck to Railroad then to
Seward Port
– Rail extension to mine site
• Covered Trucks
• Glenn Highway
– Transfer Site for Seward
Destination
– Port MacKenzie
Wishbone Hill Economic Impact
• 75 to 125 mine jobs at
full production
• High paying stable jobs
• Year round jobs
• Money that stays in
Alaska’s economy
• Local Vendors &
Contractors
Wishbone Hill Mining District
Where are we today?
Feasibility Study
- Exploration program
- Analyze transportation options
- Update permits
Moving Forward
• Permits:
- Mining Permit
Renewal
(any day…)
- Air Quality Permit
(expect public comment soon)
• Construction:
- Driveway constructed
Summer 2011
- Trees cleared along
road corridor
Fall/Winter 2011
- Construct Road to
Mine Area Summer
2012
- Order Capital Items
- Hope to begin mining in
2013
Thank You!
Lorali Simon
[email protected]
745-6028