Hamilton Beach 2013 Annual Report Download - page 10

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8
to commence mining operations were issued for the
Caddo Creek Resources Company and the Camino
Real Fuels projects in Texas. Caddo Creek expects
to begin making initial coal deliveries in late 2014.
Camino Real Fuels expects initial deliveries in the
latter half of 2015, and expects to mine approximately
3.0 million tons of coal annually when at full produc-
tion. Coyote Creek Mining Company is developing a
lignite mine in Mercer County, North Dakota, from
which it expects to deliver approximately 2.5 million
tons of coal annually beginning in May 2016.
The consolidated coal mining operations are
expected to improve significantly. Tons sold at Reed
are expected to increase in 2014 compared with 2013
and productivity improvements and increased mining
efficiencies are expected in the second half of 2014.
As part of its overall Reed improvement program,
NACoal plans to temporarily idle a higher-cost Reed
mining area during the last three quarters of 2014
while it files a revised mining permit. This permit
will allow for a larger contiguous mining area that is
expected to improve productivity and reduce costs.
While this mining area is temporarily idled, NACoal
will continue to supply current customers with coal
mined from a nearby operation. However, these
improvements at Reed are expected to be somewhat
offset by reduced results at MLMC due to fewer
deliveries in 2014 compared with 2013 because of two
significant planned outages at the customer’s power
plant in 2014. Deliveries at MLMC are expected to
increase over the longer term as a result of continued
operational improvements at the customer’s power
plant. NACoal also has project opportunities for which
it expects to continue to incur additional expenses in
North American Coal’s Liberty Mine
commenced production in 2013 for the
adjacent Mississippi Power Company’s
new Kemper County Energy Facility.
The assembly of the new dragline used
to remove overburden was completed
in late 2013. The new mine also uses a
variety of other equipment to uncover
and mine the lignite coal in the area,
including bulldozers and a number of
truck/shovel operations.