|
"We have been unwavering in our willingness to bring vitality back
to a critical Illinois industry that has been through hard times but
is seeing a much brighter future," Blagojevich said. "Our investment
is leveraging almost $90 million in private dollars that will allow
a vibrant Illinois coal industry to take advantage of better prices,
explore new markets and deploy the latest clean-coal technology,
while also creating good jobs for working families across Illinois."
More than $3 million in matching funds is supporting the opening of
the new $24.5 million Knight Hawk Coal-Prairie Eagle Mine in Perry
County and outfitting the operation with a "highwall" mining device
that allows Knight Hawk to tunnel into a coal seam without sinking a
shaft.
Also, as part of the governor's Illinois Coal Competitiveness
Program, nearly $600,000 in grants will help launch the $2 billion
Peabody Energy-Prairie State initiative to build a new power plant
in Washington County employing state-of-the-art technology to reduce
harmful emissions. The 1,500-megawatt generating plant and coal mine
is estimated to inject nearly $100 million annually into the
Illinois economy and create approximately 2,500 jobs at peak
construction and 450 skilled, permanent Illinois jobs. The Prairie
State Energy Campus is the largest private capital project ever
planned for southern Illinois.
Also expanding production and increasing coal jobs is a $13.8
million project to access new coal reserves at the state's
highest-producing mine, American Coal's Galatia Mine in Saline
County. Galatia, which produced in excess of 6.2 million tons of
coal in 2004, will receive $1.8 million to assist in the purchase of
new mining equipment, belt systems and an expanded coal-cleaning
operation.
"Time and time again, Governor Blagojevich has demonstrated his
commitment to revitalizing the coal industry in southern Illinois by
making the kinds of investments in cutting-edge technologies that
are creating new jobs and protecting the environment," said state
Sen. Gary Forby, D-Benton.
"Governor Blagojevich and I understand that by partnering with
coal companies across southern Illinois, we are helping this vital
industry regain its economic footing, while creating more and more
jobs," said state Rep. Brandon Phelps, D-Harrisburg.
"There is no greater advocate for the coal industry than Governor
Blagojevich," said state Rep. Dan Reitz, D-Sparta. "We are making
the kinds of crucial investments that will ensure this important
sector of our economy continues to create good jobs today and
tomorrow."
Funding comes from the Illinois Department of Commerce and
Economic Opportunity through its Office of Coal Development, which
is providing more than $14.8 million for 27 projects, leveraging
nearly $86 million in private investment in the Illinois coal
industry.
"Governor Blagojevich understands that we must keep Illinois coal
competitive by investing in this complex and ever-changing global
marketplace," said Jack Lavin, director of the Department of
Commerce and Economic Opportunity. "Of equal importance, these
Opportunity Returns grants leverage private investment in coal
production, coal use and coal transportation industries -- funds
that companies otherwise might invest in other mines in other
states."
This grant program, redesigned by Blagojevich in 2003, provides
up to 25 percent of the cost of each project, with projects
competitively selected on the basis of several economic criteria.
American Coal Company, Saline County
Two grants: $1.8 million
Total project costs: $13.8 million.
American will add a third coal source, the No. 6 seam. To
facilitate the expansion, the mine will add new and rebuilt mining
equipment, belt drives, belt structure, a new surface coal
separation facility, water supply, and dewatering system. The prep
plant capacity will be expanded and the slope will be repaired. The
expansion allows the mine to re-employ 206 miners who lost jobs due
to poor geological conditions, and 50 additional workers have been
hired to increase coal production at the Galatia Mine.
[Sponsor of the Week]
Arclar, Saline County
Grant: $620,000
Total project costs: $3.1 million.
Arclar will construct a half-mile access road, a rail loadout
facility capable of loading more than 100 car trains, refurbish some
rail and connect existing rail. The rail project will allow Arclar's
Willow Lake Mine to reach new markets via the CN and CSX railways.
Black Beauty Coal Company, Vermilion County
Two grants: $751,000
Total project costs: $7.03 million.
Black Beauty will expand and update existing mine equipment and
expand the refuse disposal area to allow for additional production,
preparation and storage. An ash analyzer and conveyor system will be
installed at the Vermilion Grove portal to separate coal from
refuse. The project will allow the company to increase sales, cut
operating expenses and continue to improve environmental protection
in the area.
Freeman United Coal Mining Co., Macoupin County
Two grants: $1.56 million
Total project costs: $7.83 million.
Freeman will purchase two continuous miners, allowing a boost in
coal production by 1 million tons annually. A second grant will
support the purchase of seven battery-powered haulage cars, three
roof-bolting machines, one scoop, power equipment, belt support
equipment and miscellaneous face support equipment, allowing the
expansion of mining operations to a third unit to meet coal sales
agreements. The firm has hired 63 additional workers.
Gas Technology Institute, Cook County
Grant: $950,000
Total project costs: $6,258,949.
GTI will relocate, install and test the Morphysorb Pilot Plant
from Zapata, Texas, to the GTI plant in Des Plaines. The new plant
will allow testing of technology to lower electricity costs, reduce
harmful emissions and support the use of Illinois coal.
ICG Illinois, Logan County
Grant: $750,000
Total project cost: $6.1 million.
ICG Illinois will add equipment to increase the underground
mains, expand beltlines, expand rock dusting and underground
watering systems, and prepare the impoundment area for future
production. The project supports current production levels, while
extending the mine's infrastructure for future growth.
[to top of second column in this article]
 |
 Illinois Department of Natural Resources, Office of Mines and
Minerals, Sangamon County
Grant: $30,000
Total project costs: $46,387.
The Office of Mines and Minerals will purchase safety equipment
to be used by mine rescue teams throughout Illinois. The new
equipment will replace the current equipment that is outdated and
unreliable.
Knight Hawk Coal, Perry County
Two grants: $3.15 million
Total project costs: $24.5 million.
Knight Hawk will purchase a highwall miner and cutter head,
temporarily allowing expanded production at Creek Paum mine by
400,000 tons. The highwall miner will later become the cornerstone
of production at the new Prairie Eagle Mine. Prairie Eagle will
produce 1 million tons of coal annually, creating 80 new mining
jobs.
Liberty Coal Company, Saline County
Grant: $860,000
Total project costs: $6.4 million.
Liberty will add a second mining unit to allow work
simultaneously on two production faces, providing capacity for
increased production from 1.1 million tons to 1.7 million tons
annually. Current production levels are not high enough to support
current overhead and fixed costs, threatening the mine's future
existence.
Monterey Coal Company, Macoupin County
Three grants: $902,520
Total project costs: $5.5 million.
Monterey will upgrade the coal shearer and rebuild other parts of
the longwall mining system. A second project includes the purchase
of new components for the longwall, including two drive units, beam
stage loader, crusher and belt tailpiece. The third project is to
purchase a rebuilt continuous miner, upgrading equipment used to
prepare areas for large-volume longwall mining.
Montgomery County, Montgomery County
Grant: $286,800
Total project costs: $385,500.
Montgomery County will overlay and repair a section of roadway on
the Farmersville overpass, heavily used by coal trucks in the area.
Montgomery County has said it would be forced to load-limit the
overpass and approach to Interstate 55, which would cause rerouting
coal haulage for area mines, thereby increasing costs.
Prairie State Generating Company, Washington County
Two grants: $572,500
Total project costs: $2.8 million.
Prairie State will drill and analyze core coal samples and from
the Herrin No. 6 seam at the site of a mine eyed for supplying the
planned $2 billion Prairie State Generating Station. A grant of
$422,500 supports the installation of high-voltage breakers, air
break switches, fiber optic cables, instrument transformers,
relaying and controls, communication panels insulators, and
arrestors inside the Baldwin Electric Substation to upgrade the
facility to handle 1,500-megawatt load from the new power plant.
S Coal Company, Jackson County
Grant: $720,000
Total project costs: $4.65 million.
S Coal will purchase new surface mining equipment, including a
loader, excavator and haul trucks, and will construct roads, ponds
and ditches for a new mining area near Elkville. The new mine will
supply Southern Illinois Power Coop, Marion Station, after the
current company reserves near Cambria are exhausted.
Saline Valley Conservancy District, Saline County
Grant: $87,000
Total project costs: $437,500.
Saline Valley Conservancy District will construct a new water
well, allowing the district to meet the needs and demands of the
coal industry in southeastern Illinois. The district currently
serves the needs of Willow Lake Mine with potable water for
bathhouses, as well as water to cool mining bits and for use in the
operation of longwall units.
Wabash Mine Holding Company, Wabash County
Three grants: $1.2 million
Total project costs: $8.6 million.
Wabash will replace various worn-out belts and conveyance
structure along with roof control accessing the mainline conveyor in
the Western Reserve. Included is the replacement of six miles of
belt and roof support projects to allow continued operation and
expansion of mining. A second grant of $300,000 supports the
purchase of two continuous mining machines. A third grant of
$675,000 supports the purchase of new underground vehicles to haul
coal and to transport miners and a new 5,500-foot slope conveyance
belt. The projects will increase productivity and improve
reliability of the coal supply.
White County Coal, White County
Three grants: $581,200
Total project costs: $2.96 million.
White County will purchase conveyor belt and belt structure,
excavate an area to house the bunker belt, and install the belt
transfer point and electronic controls. The project includes
purchasing rig time, two continuous miners, cementing services and
earthwork. The project will increase production capacity by 15
percent, optimize the use of the mine's vertical belt system and
support the plugging of wells to allow access to added coal
reserves.
About Opportunity Returns
Blagojevich's Opportunity Returns regional economic development
strategy is the most aggressive, comprehensive approach to creating
jobs in Illinois' history. Since a one-size-fits-all approach to
economic development just doesn't work, the governor has divided the
state into 10 regions, each with a regional team that is empowered
and expected to rapidly respond to opportunities and challenges.
Opportunity Returns is about tangible, specific actions to make each
region more accessible, more marketable, more entrepreneurial and
more attractive to businesses. It is about upgrading the skills of
the local work force, increasing the access to capital, opening new
markets, improving infrastructure, and creating and retaining jobs.
Opportunity Returns is about successfully partnering with companies
and communities, both large and small, to help all of Illinois reach
its economic potential.
[News release] |
