Lilly spoke at this year’s Longwall USA 2003 conference, held early June in Pittsburgh.

He spoke on the significance of suppliers in the American coal industry and the potential role they could play.

“We need to tap this supply chain, not only for the products and services they provide, but also to secure their political help in support of mining,” Lilly said.

“Not every supplier is dependent exclusively on mining for its economic livelihood, but a substantial number depend significantly on the well being of the mining industry.”

He said already efforts to tap supply-chain support were well under way in Pennsylvania and West Virginia.

“These suppliers are anxious to help and have been waiting only to be asked, and because they are leaders in their communities, their help and support can be enormously important,” he said.

Lilly also covered the dire situation the American power generation sector had found itself in of late, and the important ramifications that this could have for the longwall sector.

“In the relatively short span of two years, this key sector of the economy has gone from rock solid investment to highly speculative - and risky – investment,” he said.

“Several of our customers have very challenging liquidity situations with which they are trying to deal. Just last month, NRG Energy, which operates a number of coal-fired plants in CONSOL’s market, filed for bankruptcy.

“Others are undergoing significant restructuring to unwind many of the deregulation-driven business ventures that have become so problematic for them.

“We should weigh very carefully any regulatory or legal action that further impairs the essential operation of these valuable assets,” he said.