Alliance Resource Partners (ARP) has signed an agreement with White Oak Resources and related entities for the development of a longwall mining operation in Illinois, US.

ARP has made an initial investment of $69.5m in the mining operation, currently under construction.

The company estimates its total investment in the project to be $400 to $525m over the next three to four years.

The deal also comprises leaseback of reserves and surface rights, a coal handling and services agreement, and a financing facility for equipment.

ARP will fund the development from its current finance facility and cash from its existing operations.

Mine No. 1 will provide access to approximately 200Mt from the Herrin No. 6 coal seam, including 6.0 to 6.5Mt of coal annually, once it starts production in 2014.

GlobalData Strategic Intelligence

US Tariffs are shifting - will you react or anticipate?

Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.

By GlobalData

Mining Technology Excellence Awards - Have you nominated?

Nominations are now open for the prestigious Mining Technology Excellence Awards - one of the industry's most recognised programmes celebrating innovation, leadership, and impact. This is your chance to showcase your achievements, highlight industry advancements, and gain global recognition. Don't miss the opportunity to be honoured among the best - submit your nomination today!

Nominate Now