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Indiana permits approved for Alliance, Sunrise mines

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Indiana permits approved for Alliance, Sunrise mines

Extensions and renewals have been approved for some of Indiana's largest underground coal mines, a state mining official said Dec. 19.

Colleen Baughman, permit supervisor for the Indiana Department of Natural Resources' Division of Reclamation office, said she recently approved a 1,098-acre shadow area for Alliance Resource Partners LP's Gibson South mine near Princeton in Gibson County. The permit will be officially issued Jan. 15.

Gibson South produced 4.4 million tons of coal through the first three quarters of 2017, according to the U.S. Mine Safety and Health Administration.

Alliance's long-idled Gibson North underground mine, about a mile from Gibson South, has been renewed for another five years. The permit totaled 22,630 shadow acres and 800 surface acres.

Alliance has not indicated if it intends to restart Gibson North.

Earlier this month, Baughman renewed Sunrise Coal LLC's Oaktown Nos. 1 and 2 underground mines in Knox County for another five years. Oaktown 1 produced nearly 2.8 million tons and Oaktown 2 almost 2 million tons in the first nine months of 2017, MSHA figures show. The mines are on track to exceed 6 million tons for the entire year.

Also renewed was Sunrise's idled Carlisle underground mine in Sullivan County, once the company's flagship operation. Carlisle last produced coal in the fourth quarter of 2015, when it turned out about 1.3 million tons for the year.

Hallador Energy, Sunrise's parent, has said it would like to resume mining at Carlisle at some point.

In the first weeks of January, Baughman expects to approve a 3,516-acre extension for White Stallion Energy's Liberty surface mine in Warrick County. The mine, formerly operated by Vigo Coal, produces high-sulfur coal for Alcoa's 755-MW Warrick power plant near Yankeetown. Liberty produced 1.1 million tons in the first three quarters of this year.

Bob Matyi is a contributing reporter to S&P Global Platts, which, like S&P Global Market Intelligence, is owned by S&P Global Inc.