Cline Resources considers developing two underground mines in IL

Washington (Platts)--22Sep2006

A Cline Resources subsidiary is considering at least two mines in Montgomery
County, Illinois, but those plans may be riding on the outcome of a November 7
local referendum on longwall mining.

Hillsboro Energy controls a sizeable block of coal in the county, enough for
three deep mines, company President Roger Dennison told Platts on Thursday.

The industry veteran said he'd like to develop at least two mines. Detailed
information about the planned mines was not disclosed.

Alabama-based Drummond also owns significant coal reserves in Montgomery County
and could be affected by the referendum results, although they will be
non-binding. In addition to opening mines, Drummond is talking about
constructing coal-to-liquids and/or coal gasification plants in the area.

While the remaining coal in Montgomery County is of good quality, it is very
deep, ideal for longwalling, according to Dennison.

For more than a year now, the specter of longwall mining has divided the
agricultural county. Citizens Against Longwall Mining, a local group, pressured
the county board into place the issue on the fall ballot. Opponents claim
longwall subsidence will cause croplands to sag several feet.

Dennison shrugs off such concerns, noting that several Illinois counties,
including Franklin, co-existed with longwalling for decades with no serious
problems. Montgomery County, he suggested, can do the same.

"I'm not really worried about the referendum," he said. "You're not going to
ban longwall mining in one Illinois county ... that would be
unconstitutional."

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