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Hallador Energy Company  (HNRG)
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    Sector  Energy    Industry Coal Mining
 
   Industry Coal Mining
   Sector  Energy


 

Hallador Energy Company

Business Description


The largest portion of our business is devoted to coal mining in the State of Indiana through Sunrise Coal, LLC (a wholly owned subsidiary) serving the electric power generation industry. We own a 50% interest in Sunrise Energy, LLC, a private gas exploration company with operations in Indiana. We also own a 30.6% equity interest in Savoy Energy, L.P., a private oil and gas exploration company with operations in Michigan. We account for our interest in Savoy and Sunrise Energy using the equity method.

We operate two underground mines and one surface mine in southwestern Indiana. The underground mines, Oaktown 1 and Oaktown 2 are in Oaktown, Indiana, 43 miles south of Terre Haute, Indiana. The Ace in the Hole surface mine is in Clay City, Indiana, 30 miles southeast of Terre Haute, Indiana. We also own the Carlisle Mine located near Carlisle, Indiana, 36 miles south of Terre Haute. The Carlisle reserve is contiguous to Oaktown 2. The Carlisle Mine is developed, but currently idle.

Oaktown 1, Oaktown 2 and Carlisle are one large underground mining complex representing 121 million tons of controlled reserves, with three slopes, one elevator, two wash plants, and two rail facilities, located on the CSX railroad. We anticipate total capacity for the three mines to be roughly 10.5 million tons annually. Additionally, the capacity of our Ace in the Hole mine is .4 million tons annually. Thus, our total mining capacity is 10.9 million tons annually. The addition of our Princeton Rail Loop, expected to come online in the spring of 2018, will also provide us new access to coal markets served by the Norfolk Southern Railway Company.

   

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