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Opportunity for Illinois

ILLINOIS Governor Rod Blagojevich announced this week $US10 million in grant funding for coal-rel...

Donna Schmidt

The program has been around since 1996 with a different type of project chosen each year, a spokeswoman for the governor's office confirmed for International Longwall News.

Spokeswoman Mica Matsoff said this year's focus is on mine safety and carbon dioxide capture/sequestration.

The monies for each year's disbursements originate from the Illinois Department of Commerce and Economic Opportunity's (DCEO) Office of Coal Development.

In turn, grant money is made available through the Illinois Coal Competitiveness Program, which looks at projects across the state and chooses recipients based on criteria such as job creation/retention, clean coal technology potential and the invested private capital overall in modernisation to keep coal strong in the state. To date, the program has provided $56.8 million in assistance for projects totalling $415.5 million in private investment since 2003.

"In Illinois, we have not wavered in our commitment to support the long-term potential of the state's coal industry," the office said in a statement Tuesday.

"These coal projects not only fund important mine expansions and safety and environmental improvements, but also bring us another step closer to energy independence by investing in coal, an abundant energy source here in Illinois.

"Through this grant program, our coal producers are able to take advantage of better prices, explore new markets and deploy the latest clean coal technology, while also creating good jobs for working families across the state."

The office added that there are a total of 22 projects supported that equate to more than $99 million in private investment.

At the top of the list is a $2 million grant to aid in start-up costs for Royal Falcon Mine, a project totalling $32 million.

"Grant funds will be used to purchase underground mining equipment, construct a heavy media preparation plant, develop a boxcut, and purchase a slope belt to transport coal to the preparation plant," the office said of the operation, which will produce an estimated 1.2 - 2 million tons per annum with a 20-year lifespan.

Also on the docket for the Opportunity Returns funding is the American Coal-Galatia Mine North Portal; Blagojevich has pledged $900,000 to the $11 million expansion project to allow for coal block access. A new slope will be constructed, with the first phase including site preparation, utilities and man/material shaft installation at the 800-worker complex.

Several of the politician's colleagues weighed in to endorse his announcement and its importance to the region.

"Governor Blagojevich has maintained a strong commitment to the Illinois coal industry, and every year he has made funding available for expansions and industry growth. Through these grants, we are revitalising this key sector and advancing essential clean coal technologies," said state Senator Gary Forby.

Added Senator Michael Frerichs: "These grants allow the coal industry to focus on higher environmental and safety standards, while creating more jobs throughout the region and across the state."

Illinois state representative Gary Hannig said he will maintain his committed efforts with the governor to build the industry.

"Coal is an integral part of the Illinois economy, so we must continue to make these investments in clean coal technologies, modernisation and mine safety," Hannig said.

Other grant recipients are as follows:

Arclar - Grant amount: $880,000. Total project costs: $7 million

Arclar received two grants, one for $360,000 for safety equipment acquisition to comply with federal outlines and one for $520,000 to aid in the rebuilding of underground mining equipment, new belt drive installation and the purchase of a battery scoop.

Black Beauty Coal Company - Grant amount: $71,500. Total project costs: $415,000

Black Beauty also received two grants through the program. One, for $60,000, will help to outfit two mine rescue teams with attire at the Vermilion Grove Portal and purchase a vehicle and trailer to transport the teams off-site for emergencies. The second grant, for $11,500, will aid in the installation of a preparation plant water supply backup system and for an upgrade to the facility's raw coal crusher electrical circuits.

Coulterville Coal Company - Grant amount: $564,385. Total project costs: $5 million

Safety equipment to comply with MINER Act regulations will be purchased with the smaller amount of the funding, totalling just over $135,000. Self-contained self-rescuers, lifelines rescue chambers, a backup communication system and a utility cache will also be purchased for Gateway mine, which received another $429,000 for equipment upgrades.

Dry Systems Technologies - Grant amount: $80,000. Total project costs: $400,000

"Dry Systems Technologies received $80,000 to expand its services and production in southern Illinois and create five new permanent jobs," said the office. "[It] will build a new fabrication and painting facility for mining equipment rebuilds and an equipment wash facility and laboratory for dynometer testing."

ExxonMobil Coal USA - Grant amount: $332,000. Total project costs: $1.6 million

A grant for $332,000 to the Monterey No. 1 operation will aid in several mine safety improvements for the company. In addition to respirators, an underground communication system and miner tracking system will be purchased.

Gas Technology Institute - Grant amount: $1.45 million. Total project costs: $29.8 million

A Flex-Fuel test facility is planned for the Des Plains area, according to the governor's office, and the company received its grant to help design, procure and install equipment at the project. "Improvements will enable the research facility to host over $28 million of federally and privately funded gasification, coal-to-liquids and fuel cell research," it added.

ICG Illinois - Grant amount: $374,750. Total project costs: $1.49 million

A tracking and communications system as well as proximity protection devices will be installed at ICG Illinois' Viper mine with $175,000 of the grant. The remaining funds will help in a project to remodel an existing building at the operation into a mine rescue training facility equipped with additional safety equipment.

Illinois Eastern Community Colleges - Grant amount: $126,000. Total project costs: $192,000

With $36,000 of its grant, the colleges will obtain 240 trainers to keep workers in MINER Act compliance for quarterly training procedures and practices in donning and transferring from one unit to another. "This purchase will allow IECC to waive the tuition for self-rescuer training to Illinois miners," the office added.

Another grant for $90,000 will help the IECC acquire three additional sets of CBT systems, including a continuous miner, a roof bolter and a longwall miner that can be moved between training sites and operations as needed.

Prairie State Generating - Grant amount: $833,000. Total project costs: $4.1 million

Prairie State received two grants, one for just over $410,000 to aid in the construction of a distribution substation and overhead utility lines at the new Prairie State Energy Campus. Also, $422,500 in grant money will allow for upgrades at the Baldwin Substation that will connect it with the campus.

S Coal Company - Grant amount: $720,000. Total project costs: $4.4 million

"S Coal Company received $720,000 to purchase equipment needed to expand mining operations down to the No. 5 coal seam," said the office in a statement. "The Elkville Mine currently mines the No. 6 coal seam, with the No. 5 seam 30 feet below [and] this project will increase mine production by 240,000t of coal per year."

Shawneetown Regional Port District - Grant amount: $700,000. Total project costs: $6.7 million

A new coal loading facility on the shores of the Ohio River will be constructed using the $700,000 in funding the district received. Included equipment for the project: a coal dump hopper, end loader, bulldozer, a barge loader and three barges, and 1700 linear feet of 48in coal beltline with supporting infrastructure.

South Central Illinois Regional Planning and Development Commission - Grant amount: $41,500. Total project costs: $221,500

A five-county study for land use and assessment modelling will be conducted with the commissions grant. The results of the study, the office said, will help enable local governments to project the impact of major investments by the coal industry.

Southern Illinois University at Carbondale - Grant amount: $200,000. Total project costs: $250,000

With its money, the school will commence a feasibility study for a coal gasification facility at its Carbondale campus.

White County Coal - Grant amount: $725,800. Total project costs: $3.6 million

With the funding, 12 variable frequency drive (VFD) shuttle cars will be purchased for the company's Pattiki mine, an option for the complex that will use less power and have greater productivity through decreased down time and less maintenance.

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