CONSOL's Buchanan mine to resume production before end of June

Washington (Platts)--3Jun2005

Saying Wednesday that damage to its Buchanan metallurgical mine will be
repaired quickly, CONSOL Energy recalled its 400-strong work force. CONSOL
said it plans to resume production at the 4.4 mil-ton/year longwall mine
before the end of the month. The overwhelming majority of CONSOL's met coal
production is from the operation near Keen Mountain, Virginia.

Mine rescue teams re-entered Buchanan on May 23 after a 3 1/2-month shutdown
(PCT 5/24). The mine was sealed in mid-February when a cave-in behind the
longwall ignited methane that is believed to have started a fire underground
(PCT 2/16). CONSOL has spent much of the time since then pumping
oxygen-killing substances into the mine, continuously monitoring the
underground atmosphere to make sure there were no further signs of ignition
and making sure the mine was safe for re-entry by repair crews.

After the shutdown, CONSOL said it would ship stockpiled coal from the mine to
customers through the end of May, but also declared force majeure on
shipments. The stockpiles are now gone, CONSOL spokesman Tom Hoffman told
Platts Coal Trader on Thursday. Force majeure remains in effect until
production resumes, he said, noting that the company "can't really make up
shipments" from the mine once it reopens. 

CONSOL said mine rescue teams have completed their examination of Buchanan and
have been sent home. "Buchanan mine's regular work force of more than 400 all
have been recalled and are engaged in repair work underground," the
Pittsburgh-based company said. "Although no cost estimate of damage is
available, rescue teams found only limited damage to the mine equipment and
infrastructure of the mine. All damage is expected to be repaired quickly."

Also, limited power has been restored underground to allow pumping of water
that has accumulated in the mine since it was sealed, CONSOL said. Full power
is expected to be restored once ventilation is consistent with the mine's
previously adopted mine ventilation plan.

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