Hamilton Beach 2012 Annual Report Download - page 15

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are in development. Liberty Fuels
is eventually expected to produce
approximately 4.5 million tons of lignite
coal annually for Mississippi Power
Company’s new Kemper County
Energy Facility currently being built
in Mississippi. The project is on track
for initial coal deliveries in mid-2014.
In February 2013, the mining permit
needed to commence mining opera-
tions at the Caddo Creek Resources
Company’s project in Texas was issued.
Caddo Creek expects to mine approxi-
mately 650,000 tons of coal annually
with initial deliveries expected in early
2014. In January 2013, the mining
permit needed to commence mining
operations at the Camino Real Fuels
project in Texas was issued. Camino
Real Fuels expects initial deliveries in
the third quarter of 2014, and expects
to mine approximately 2.7 million tons
of coal annually when full production is
achieved. In addition, in October 2012,
North American Coal’s subsidiary,
Coyote Creek Mining Company, entered
into a new agreement with the co-
owners of the Coyote Station generation
plant to develop a lignite mine in Mercer
County, North Dakota. Coyote Creek
Mining Company expects to deliver
approximately 2.5 million tons of coal
annually beginning in May 2016.
North American Coal also expects
to continue to incur additional expenses
in 2013 to pursue new project opportu-
nities. In particular, the company
continues to move forward to obtain
a permit for its Otter Creek reserve in
North Dakota in preparation for the
anticipated construction of a new mine.
Overall, North American Coal
expects net income in 2013 to decrease
slightly from 2012 primarily due to the
absence of pre-tax gains of approxi-
mately $7.0 million from asset sales
during 2012. Excluding the effect of
the asset sales, operating results are
expected to increase compared with
2012 mainly as a result of increased
deliveries and lower operating expenses.
Cash flow before financing activities for
2013 is expected to be higher than 2012,
but not at the levels of 2011 due to an
anticipated increase in capital expendi-
tures to support operating improve-
ments at the Reed Minerals operations.
North American Coal’s Liberty Mine is being developed adjacent to Mississippi Power Company’s new Kemper
County Energy Facility currently being built in Mississippi. The new mine, once completed, will use a variety of
equipment to uncover and mine the lignite coal in the area.