PITTSBURGH, April 24 /PRNewswire-FirstCall/ -- Affiliates of CONSOL Energy Inc (NYSE:CNX) and The Pittsburg and Midway Coal Mining Co. (P&M), have entered into a joint venture agreement to develop the proposed Youngs Creek Mine north of Sheridan, Wyoming.
CONSOL of Wyoming LLC, and Chevron NPRB, LLC, have formed a new company, Youngs Creek Mining Company, LLC., to develop and operate the mine. Youngs Creek Mining Company received coal reserves and land totaling approximately 315 million tons of sub-bituminous Powder River Basin coal with an estimated heat content of 9,350 Btu/lb and an average sulfur content of 0.47%.
Based on initial feasibility studies, the mine has the potential to reach 15 million tons per year when at full production. Engineering, environmental and permitting work are in progress, and the companies anticipate that permits for the mine will be submitted in late 2008. However, both companies stress that actual mine construction will not start until the joint venture has sufficient coal sales under contract to justify the planned investment.
"This high-quality reserve Youngs Creek Mining will develop is one of the best remaining in the Powder River Basin," said J. Brett Harvey, president and chief executive officer of CONSOL Energy Inc. "Not only is it the highest Btu product being produced anywhere in the Wyoming portion of the basin, but the majority of the coal is owned outright rather than leased from the federal government as is more typical of Powder River Basin reserves."
"We are excited about the formation of Youngs Creek Mining Company and the opportunities it will create for Sheridan County, WY," stated Mark A. Smith, president and chief executive officer of P&M. "We look forward to working with the community towards the development of this unique resource."
Harvey said that CONSOL of Wyoming was pleased to be in partnership with Chevron NPRB. "Partnering on a large new mine with an experienced western surface mine operator reduces the risk profile of expanding into the Powder River Basin."
About CONSOL Energy Inc.
CONSOL Energy Inc., a high-Btu bituminous coal and coal bed methane company, is a member of the Standard & Poor's 500 Equity Index and has annual revenues of $3.7 billion. It has 15 bituminous coal mining complexes in six states and reports proven and probable coal reserves of 4.3 billion tons. In addition, the company is a majority shareholder in one of the largest U.S. producers of coalbed methane gas, CNX Gas Corporation. CONSOL Energy was named one of America's most admired companies in 2005 by Fortune magazine. It received the U.S. Department of the Interior's Office of Surface Mining National Award for Excellence in Surface Mining for the company's innovative reclamation practices in 2002, 2003 and 2004. Also in 2003, the company was listed in Information Week magazine's "Information Week 500" list for its information technology operations. In 2002, the company received a U.S. Environmental Protection Agency Climate Protection Award. Additional information about the company can be found at its web site: www.consolenergy.com.
About The Pittsburg and Midway Coal Mining Co.
Founded in 1885, The Pittsburg and Midway Coal Mining Co. is one of longest continuously operating mining companies in the United States. The company operates three coal mines in the US, a surface coal operation in Kemmerer, WY, a surface coal operation in McKinley Co., NM and an underground coal mine in Berry, AL. Headquartered in Englewood, CO., P&M is a wholly- owned subsidiary of Chevron Corporation. In 1999, the Kemmerer Mine received the prestigious Sentinels of Safety Award from MSHA and the National Mining Association for working the entire year without a lost workday injury. In addition, the McKinley Mine was recognized by the Joseph A. Holmes Safety Association in recognition of its outstanding safety record.
Safe Harbor
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this news release regarding CONSOL Energy's business which are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in the Company's Annual Report or Form 10-K for the most recently ended fiscal year.
Source: CONSOL Energy Inc.
