Gibson County Coal LLC, an Indiana-based Alliance Resource Partners LP subsidiary, has been issued a final permit by the Illinois Office of Mines and Minerals to mine under the Wabash River to reach thermal coal reserves in Wabash County, an official said Dec. 12.
Tom Benner, director of the office, told S&P Global Platts in an interview that the permit covers about 3,200 shadow acres.
Although unusual, Illinois has approved mining permits for companies to access reserves from an out-of-state mine, Benner said. A few decades ago, the former Amax Coal tunneled under the Wabash River from its underground mine near Mount Carmel, Ill., to reach reserves the company owned in Indiana.
Sunrise Coal has a similar request pending.
Benner stressed the new permit does not authorize Gibson County Coal to construct a new portal on the Illinois side of the river or do any surface work.
According to a Gibson County Coal official, the company will not move on the permit unless it reopens its Gibson North underground mine near Princeton in Gibson County, Ind. Gibson North controls the Wabash County reserves, not the company's active Gibson South underground mine, located about a mile from Gibson North, the official said.
Gibson North has not produced coal since late 2015, and the official said he knew of no plans to resume mining.
Gibson South produced 4.4 million tons in the first nine months of 2017, according to the U.S. Mine Safety and Health Administration, up from 3.9 million tons in all of 2016.
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.
