Foundation advances mine permit
WAYNESBURG – An Alpha Natural Resources subsidiary is continuing through the permitting process for its proposed Foundation Mine in Holbrook, although Alpha, now in bankruptcy, said Friday that doesn’t mean a new mine will ever be constructed.
Foundation Mining LLC published a public notice Friday in the Observer-Reporter indicating it has applied to the state Department of Environmental Protection for a permit for the new mine and associated shaft site.
The company had first submitted an application for the Foundation Mine in early 2008 and held two public meetings on the plan, the last in February 2011. However, since then, nothing further has developed.
An Alpha spokesman said Friday that Foundation was continuing through a permitting process it began in 2008 and publication of the notice was a requirement of that process.
The fact the company is continuing with the permit process doesn’t necessarily mean it will ever proceed with plans to construct the mine, the company said.
Alpha Natural Resources, which owns the Cumberland Mine in Kirby and the closed Emerald Mine in Waynesburg, filed for bankruptcy in August.
Last week, it announced it received a $500 million offer from existing lenders for the potential sale of its core assets, which include the Emerald and Cumberland properties and natural gas holding in Southwestern Pennsylvania.
The offer from its lenders will set the floor for an auction process that will let competitors make higher bids. The auction will be conducted March 31.
Ed Yankovich, international vice president for District 2 of the United Mine Workers, said he doubted the company would ever proceed with opening a new mine, especially now that its core assets are up for sale.
”They’re in bankruptcy, and at this time it’s hard to imagine any new mine being opened by Alpha,” he said. The union represents employees at both the Cumberland and Emerald mines.
Union members attended the earlier public hearings on the Foundation Mine and indicated they believed the new mine should be opened as a UMW mine. Company officials said then the mine would open non-represented, but employees could later decided whether to unionize or not.
According to the public notice published Friday, the company is seeking to permit 9,438 acres of coal in Center, Jackson and Richhill townships. The shaft site will be on the west side of Route 18, south of the intersection with Bristoria Road. The 25.4-acre shaft site would include a shaft, utility boreholes, a bathhouse, diesel storage tank and parking area.
Under plans presented by Foundation earlier, the surface area of the mine also included a shaft, slope, preparation plant, rail spur and coal-loading facility and water supply facility.