Hamilton Beach 2015 Annual Report Download - page 9

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offset the reduction in sales prices. MLMC’s
contract with its customer expires in 2032.
During the third quarter of 2015, NACoal’s
management recommended and its Board of
Directors approved cessation of coal production
at the Centennial Natural Resources business
in Alabama by the end of 2015. The cessation of
coal production at Centennial occurred during
the fourth quarter of 2015, eliminating NACoal’s
only direct exposure to coal market price volatility.
Centennial will continue to evaluate strategies to
maximize cash flow, including through the sale of
mineral reserves, equipment and parts inventory.
However, cash expenditures related to mine
reclamation at Centennial will continue until
reclamation is complete or ownership of the mines
is transferred. NACoal is also evaluating a range
of strategies for its Alabama mineral reserves,
including holding reserves with substantial
unmined coal tons for sale or contract mining
when conditions in Alabama and global coal
markets improve.
Value-added Services
NACoal’s “cost-plus” business model also
applies to its value-added services operations.
NACoal personnel operate and maintain drag-
lines for extraction of limerock at independent
customer-owned limerock quarries in Florida.
This business is operated as a division of NACoal
and its financial results are included in the results
of consolidated operations.
NACoal also operates a coal processing
system for a power plant customer pursuant
to a cost-plus arrangement.
Safety and Environmental Excellence
NACoal consistently ranks among the safest
and most environmentally responsible coal mining
companies in the country. In 2015, the National
Mining Association ranked NACoal among the
safest coal mining companies in the United
States based on the Mine Safety and Health
Administration (MSHA) 2015 incident rate. Safety
is at the very core of NACoal’s culture, embedded
deeply in employee training programs, operating
procedures and best practices shared among
all of NACoal’s operations.
NACoal’s permitting, mining and reclamation
activities utilize state-of-the-art technology and a
commitment to excellence to ensure that activities
comply with, or exceed, legal requirements. Work
on mine sites is performed with the greatest
degree of care to ensure that land is returned
to a productive natural state. Frequently, NACoal
employees and their families are farmers,
North American Coal signed a new agreement to
operate a surface mine located within the
Navajo Nation, near Fruitland, New Mexico.
Pictured left to right are Rick Ziegler, President of
NACoal’s subsidiary, Bisti Fuels Company, which
will operate the mine, Navajo Nation President
Russell Begaye, and J.C. Butler, President and
Chief Executive Officer of North American Coal.