The new mine between Dixon and Sebree will produce coal from the No. 9 seam, the predominant coal seam in western Kentucky. The typical seam height is about 4.5 ft and the washed coal should average 12,200 Btu/lb and 2.5% sulfur. While development activity is planned for the mine site in 2014, Mike Bradford, Carbonado’s general manager, said it is not certain that the new mine will be in production before the end of 2014.
The Madisonville, Ky.-based company said the mine’s relatively close proximity to both the Green and Ohio rivers — within about 20 miles — should allow for barge transportation to most destinations.
Carbonado already has secured a three-year, 480,000-tons-per year coal sales agreement with Louisville Gas & Electric Co., a subsidiary of PPL Corp. of Pennsylvania, for the mine. LG&E and Kentucky Utilities Co., also owned by PPL, are Kentucky’s two largest electric utilities with nearly a million customers combined.
Carbonado controls an estimated 30 million tons of reserves in the area. Peabody Energy had leased the reserves until 2007.
Bradford said the mine’s presence near the two rivers also may give Carbonado opportunities to export some of the mine’s coal as well.