Pratt

Covers 15,000 acres (6,069 ha) located in the Henderson and Webster County area, Kentucky, U.S.A. The proposed Pratt mine is located approximately 17 miles south of Henderson, Kentucky, and approximately 0.5 miles from Sebree, Kentucky, U.S.A.

The coal reserve potential of the Henderson and Webster County, Kentucky, properties is within the Carbondale Formation and the Shelburn Formation. The coal in this region is generally medium to high sulfur and ranks as high volatile bituminous C. The underground mine is intended to mine the KY9 seam.

The proposed Pratt open pit/underground mine contains both underground and surface coal totaling 33.8 million tons of measured and indicated resources and 0.67 million tons of inferred resources and 28.9 million tons of proven and probable reserves.

Employment at the proposed Pratt mine is projected to total 190 miners at full production. The plan entails producing 28.9 million clean salable tons over the life of the mine with the reserve depleted in 2020. The physical characteristics of the underground coal reserves dictate that the room and pillar mining method be employed. A modified perimeter mining plan may be developed, in which a series of fender cuts are extracted from pre-designed barrier pillars during retreat mining.

The high-capacity operation is expected to operate four production sections and attain annual production of 3.0 million tons. Each production section is designed to employ a synchronous operating method, in which the two continuous miners will alternate production and place changing. One machine is in production, cutting and loading coal, while the other machine is moving and setting up for subsequent production.

Phoenix currently controls 173 acres of surface property for development of the proposed Pratt mine. At the mine site it is expected there will be mine shafts and a slope, hoists and support facilities including bathhouse and office, warehouse, supply storage facilities, mine fan, power substation and transformers and other support facilities. The coal preparation plant, raw coal and clean coal handling facilities and coal refuse disposal facility are expected to be constructed at this location. Sediment control structures are expected to be constructed for the mine, plant and refuse disposal facilities.

Underground mine plant yield for the proposed Pratt mine is projected at about 76 percent. Adverse roof or floor conditions could reduce the expected recovery and affect the preparation plant operating schedule and cost.

Raw coal is screened and washed in coarse, intermediate and fine coal circuits.

Coarse raw coal is washed in a heavy medium vessel. The clean coal is drained and rinsed to recover magnetite. Coarse coal is dewatered with a vibratory centrifugal dryer. Coarse refuse crosses drain and rinse screens to recover magnetite and dewater refuse for disposal.

Intermediate raw coal is washed in heavy medium cyclones. Clean coal crosses drain and rinse screens and is dewatered with bowl centrifugal dryers. Intermediate refuse is drained and rinsed and dewatered with bowl centrifugal dryers.

Fine raw coal is sized with classifying cyclones. The classifying cyclones make a size cut at about 150-mesh particle size. The over-flow from the cyclones is discarded to a slurry pond, slurry cells, or dewatered with a belt press for combined disposal with coarse refuse. The classifying cyclone underflow material is next washed with spiral separators. The clean coal product from the spiral separators is dewatered in a screen bowl centrifuge. The refuse material is dewatered with high-frequency vibratory screens.

Initially, coal is expected to be transported from the proposed Pratt mine by truck 3.8 miles, at an estimated cost of US$1.92 per ton, to the Sebree Dock river terminal for trans-loading to barge. Alternatively, coal may be trucked 5.9 miles directly to Big Rivers Electric Corporation at an estimated cost of US$2.24 per ton.