ERP Compliant Fuels Overview - The Coal...
Transcript of ERP Compliant Fuels Overview - The Coal...
Provides “Environmental Management Services” to over 700 Surface Mining Control and Reclamation Act (SMCRA) and National Pollutant Discharge Elimination System (NPDES) permits. Operates in eight states.
Funded over $400 million in long-term reclamation and water management services.
Operates the “Federal Mining Complex” (UG Longwall Nameplate 4mm ST annual capacity NAPP 13,500 BTU fuel).
Operates the “Oak Grove Mining Complex” (UG Longwall Nameplate 3 mm ST annual capacity Blue Creek Seam MET product).
Operates the “Pinnacle Mining Complex” (UG Longwall Nameplate 3.5 mm ST annual capacity Pocahontas III Seam MET product).
Operates the “Maple Mining Complex” (West Virginia) producing High VOL “A” MET product.
Operates a 3 Battery 120 Oven Coke Plant producing 420,000 ST/year.
Growth is focused on the continued consolidation of the U.S./Canadian MET and COKE sectors, and integrating with our U.S., Canadian, and European steel making partners.
Summary of ERP Activities
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ERP is a relatively new natural resources company focused on acquiring assets within the coal and steel making cycle
ERP Acquisitions through April 2016
Patriot Coal Acquisition
Cliffs Acquisition
Walter Industries Purchase
In October 2015, ERP acquired the Federal and Hobet mines in WV, along with more than 300 million tons of coal reserves from the estate of Patriot Coal. Hobet is in reclamation, while Federal produces a 13,500 btu NAPP thermal coal product that is sold to utilities such as Genon Energy and Talen Energy
In December 2015, ERP acquired the Oak Grove and Pinnacle mines from Cliffs Natural Resources. Pinnacle, based in WV, and AL based Oak Grove both produce low volatility high quality metallurgical coal for the global steel industry. US Steel, ABC Coke, Haverhill Coke, Indiana Harbor, and TKS are among current customers
In February 2016, ERP acquired the Maple Mine along with the Walter Coke Operations out of the Walter Industries Estate. Maple based in WV produces a High Vol A metallurgical coal, while the Coke operations based in AL produces metallurgical coke for the steel industry.
Affiliates
Virginia Conservation Legacy Fund, Inc. (“VCLF”) (owns Natural Bridge of Virginia and promotes the bundling of carbon offset credits with coal and coke sales)
Seneca Coal Resources, LLC (Pinnacle and Oak Grove Mining Complexes)
ERP Environmental Fund, Inc. (non-profit Public Private Partnership “PPP” with “State Regulators” for reclamation and water management/solely responsible for all environmental risk)
ERP Federal Mining Complex, LLC (20.0 percent owned by the United Mine Workers of America)
Seminole Coal Resources, LLC (Alabama and West Virginia Mines)
ERP Compliant COKE, LLC (operates a 3 battery 120 oven coke plant)
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ERP is committed to being a first class environmental steward. Our Affiliates have significant experience in executing superior environmental plans
Virginia Conservation Legacy Fund, Inc.
VCLF Land Trust, Inc.
ERP Environmental
Fund, Inc.
ERP Common Ownership
ERP Compliant Fuels, LLC
ERP Mineral Reserves, LLC
ERP Settlement,
LLC
Federal Mining Complex, LLC
Federal No.2 Mine
ERP Compliant Coke, LLC
ERP Coke Plant
Seminole Coal Resources, LLC
Maple Mine
Choctaw Mine
Seneca Coal Resources, LLC
Oak Grove Mine
Pinnacle Mine
Organizational Chart
ERP’s Operations are capable of producing in excess of 11.5 mm tons of Coal and Coke Products
Federal #2 Mine
Opened in 1969
Owned & Operated until 2015 by Eastern Associated Coal
ERP Acquired on October 22, 2015
High Quality High BTU Thermal Coal
30 Miles south of Morgantown, WV in Monongalia County
ERP Federal Mining Complex
Mine Total
Recoverable Reserves
Annual Production
Capacity
Production (tons)
Federal #2 25mm 3.5mm 2.8mm
Maple Eagle #1
Owned & Operated until 2016 by Walter Energy
Acquired by Seminole in February 2016
High Quality High BTU Industrial Coal
5 miles east of Montgomery, WV in Fayette County
Seminole WV Mining Complex
Mine Total
Recoverable Reserves
Annual Production
Capacity
Production (tons)
Maple Eagle #1
10mm 0.3mm 0.3mm
Pinnacle Mining Complex
Opened in 1969
Owned & Operated until 2003 by US Steel as Gary #50
Sold to PinnOak by US Steel, then to Cliffs in 2007
Seneca Acquired on December 22, 2015
High Quality Low-Volatile Metallurgical Coking Coal
30 Miles west of Beckley, WV in Wyoming County
Seneca Coal Resources
Mine Total
Recoverable Reserves
Volatile Matter
Annual Production
Capacity
Production (tons)
Pinnacle 80mm 17% 3.5mm 2.8mm
Oak Grove 90mm 22% 3.0mm 2.2mm
2nd HALF 2016F
2017F
Coal Tons Sold
2.6mm 6.1mm
Revenue $156M $422M
EBITDA $8.6 $89M
Costs per Ton $62 $54
Oak Grove Mining Opened in 1975 Owned & Operated until 2003
by US Steel
Sold to PinnOak by US Steel, then to Cliffs in 2007
Seneca Acquired on December 22, 2015
High Quality Low-Volatile, Low-Sulfur Metallurgical Coking Coal
15 Miles west of Birmingham, AL
Pinnacle Mine Coal Specifications
Quality Typical Guaranteed Moisture: 7.50% 8.50% Ash: 6.50% 8.00% (db) max Sulfur: 0.97% 1.00% (db) max Volatile Matter: 15.50 – 16.50% (db) Oxidation: 97.00 92.00 min Reflectance: 1.70% Gieseler plasticity:
20 ddpm