Community leaders and Alcoa Warrick Operations asked the Indiana Department of Natural Resources on Wednesday to approve a permit for a new surface coal mine being proposed for Warrick County.
Alcoa is working with Evansville-based Vigo Coal Co. to open the Liberty Mine, located about three miles north of Chandler, Ind. Plans call for mining to begin in 2012. The coal from the mine would supply Alcoa’s Warrick Power Plant, which recently underwent a significant $600 million modernization project to install state of the art environmental controls that remove more than 95% of sulfur dioxide emissions. The environmental modernization project was the largest investment by Alcoa in North America when completed in 2008.
The proposed development of this new surface coal mine would provide about half of the annual fuel supply for the power plant, which provides electricity to all of Warrick Operations.
Warrick Operations, which is celebrating 50 years in the community this year, employs about 2,000 people and has a daily economic impact of USD 6.6 million in the Evansville Metropolitan Area.
Mr G Royce Haws location manager for Alcoa Warrick Operations told the Department of Natural Resources’ staff that access to low cost, reliable energy is critical to the long-term success of aluminum smelting and to Alcoa’s facility in Warrick County. He said that “Aluminum facilities across the country have curtailed or permanently closed because they lost access to affordable energy, so this coal development will help ensure that Warrick Operations can avoid the severe business risk that would come from fluctuating energy prices.”
The IDNR also heard comments from local business leaders representing the Chamber of Commerce of Southwest Indiana and the Warrick County Economic Development Corp both of whom encouraged approval of the development to help Alcoa remain competitive in Warrick County.
Mr John Harman president of Vigo Coal Operating Co said the Liberty Mine would initially employ about 62 miners, with an annual payroll including benefits near USD 6.2 million. Once underway, it would produce about 1.0 million tonnes per year.
Vigo Coal and its subsidiaries have been recognized for environmental performance, including four Excellence in Mining Awards from the Indiana Department of Natural Resources, three awards from the US Department of Interior and four reclamation awards from the Interstate Compact Commission.
Mr Haws said that “This year, Alcoa Warrick Operations celebrates 50 years of success in this community We are proud of the significant investments that Alcoa has made at this facility over the years and this additional investment in a new coal mine will allow Warrick County to remain competitive in the global aluminum market.”
