Coal from Usibelli mine in Alaska to be tested in Chile power plant

Coal from Usibelli mine in Alaska to be tested in Chile power plant

Alaska Journal of Commerce, Anchorage --Aug. 4

Aug. 4--Usibelli Coal Mine Inc. will ship 45,000 metric tons of Alaska subbituminous coal for testing in a Chilean power plant in late August. If the tests prove positive, showing that Alaska coal is compatible with boilers in the power plant, a second 45,000-metric-ton shipment will be made in November, Usibelli said.

The company, which owns a coal mine at Healy, in Interior Alaska, signed a contract with Glencore Ltd., a firm which sells and transports coal internationally.

"This is a very significant event for our company," said Joe Usibelli Jr., president of Usibelli. "Not only is this our first shipment to South America, it is also a great opportunity to establish a relationship with Glencore," a major coal trading firm.

The company cannot identify the specific customer for the test shipment, company spokesman Bill Brophy said. He did say the Alaska coal will be mixed with other coals in the test.

Alaska coal has a very low sulfur content, and by blending it with other coal, a power plant can achieve reductions in air pollution.

The first shipment of Alaska coal to South America will spike awareness of Usibelli and the advantages of Alaska ultra-low sulfur coal in the international coal markets, Brophy said.

Usibelli mines approximately 1.2 million tons of coal yearly, with about 800,000 tons sold to fuel power plants and provide space heating in Interior Alaska, and 400,000 tons exported to a power plant in Honam, South Korea.

The coal for shipment to Chile will require about six additional coal trains from Healy to Seward, where the Alaska Railroad Corp. operates a bulk commodity loading marine facility.

Brophy said the coal needed for the test shipment can be produced by Usibelli's additional staff.

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