The Deer Run mine is located near Hillsboro in Montgomery and Bond counties, Ill., and the coal reserves are leased to the mining company Hillsboro Energy, an affiliate of the Cline Group. Construction of the new longwall mine is well under way with initial production expected by year-end 2010, and longwall production expected to commence in early 2012. Production from the mine is forecasted to be approximately eight to 10 million tons per year when the longwall is in full production, from which NRP ultimately anticipates receiving in excess of $40 million per year of income. Based upon these production levels, the life of the mine will exceed 20 years.
