CHICAGO – Furthering his pledge to revitalize the Illinois coal industry and create better opportunities for working families across Illinois, Gov. Rod R. Blagojevich today announced more than $8 million in Opportunity Returns grants to support the major expansion of three coal mines and the reopening of another mine, as well as other coal-related projects that will create and sustain hundreds of jobs and further modernize this important industry.
 
“We have a way to cut our dependence on foreign energy and keep billions of our hard-earned dollars here at home, in our economy, creating more jobs, rather than leaving Illinois forever.  We have the resources.  We have the technology.  We have the expertise.  That is why we invested more than any other state in new technologies and new operations to continue the revitalization of our coal industry.  These grants are leveraging almost $63 million in private investment, which will help put more people to work and contribute to a more secure energy future for our nation,” Gov. Blagojevich said.

The Governor is providing $1.3 million in matching funds to support development of a $50 million project, which will add 20 years to the life of the Wabash Mine in Wabash County.  Support is for phase one of a three phase project to establish slope construction, portal structure and running power to the project.  These improvements will retain 220 mining jobs and allow the company to continue mining 30 million tons of recoverable coal in reserve.  The Governor is also providing a total of $1.65 million in matching funds to support the modernization and expansion of Knight Hawk Coal-Prairie Eagle mine in Perry County and Arclar LLC-Wildcat Hills mine in Saline County.

Gov. Blagojevich is also providing more than $482,000 to help Alcoa Fuels, Inc. build a raw coal material handling facility at its Friendsville Mine in Wabash County, which is reopening and expanding.  This will create 70 new jobs and produce 1 million tons of coal per year
       
“The coal industry is and will continue to be a major driving force in the future of our economy in this part of the state.  We have continued to provide the investments that matter most to this industry, which is creating more jobs and better opportunities across the region,” State Senator Deanna Demuzio (D-Carlinville) said.

“Gov. Blagojevich has not wavered on his commitment to the Illinois coal industry.  Through these important investments, we are helping to revitalize this key sector of the economy by advancing clean coal technologies and creating more jobs that will pave the way for the long-term viability of this industry in Illinois,” State Senator Gary Forby (D-Benton) said.

“These investments in the coal industry are not only helping to create and retain Southern Illinois jobs, but supporting the modernization and expansion of coal operations that are conscious of the environment and the long-term sustainability of coal,” State Rep. John Bradley (D-Marion) said.

“Gov. Blagojevich has demonstrated his tremendous commitment to revitalizing the coal industry in Central Illinois by making the kinds of investments in technologies that are creating new jobs and protecting the environment,” State Rep. Gary Hannig (D-Gillespie) said.

“Gov. Blagojevich and I understand that by partnering with coal companies across Southern Illinois, we are helping this vital industry regain its economic footing, while creating more and more jobs,” State Rep. Brandon Phelps (D-Harrisburg) said.

“There is no greater advocate for the coal industry than Gov. Blagojevich.  By continuing to invest in projects that are moving this important industry forward, we will continue to create good jobs for today and tomorrow,” State Rep. Dan Reitz (D-Steeleville) said.

Funding comes from the Illinois Department of Commerce and Economic Opportunity (DCEO) through its Office of Coal Development, which is providing more than $8 million for 19 projects, leveraging almost $63 million in private investment in the Illinois coal industry.  Since beginning in 1997, the program has used $128 million in state funds to leverage $856 million in private investment.

“Gov. Blagojevich understands that we must keep Illinois coal competitive by investing in this complex and ever-changing global marketplace,” DCEO Director Jack Lavin said.  “Of equal importance, these Opportunity Returns grants leverage private investment in coal production, coal use and coal transportation industries – funds that companies otherwise might invest in other mines in other states.”

The grants below are provided through the Illinois Coal Competitiveness Program, which competitively selects worthy projects based on several economic criteria, including the creation or retention of jobs, the deployment of clean coal technology and the modernization of operations to sustain coal mining in Illinois for the future.  This grant program, redesigned by Gov. Blagojevich in 2003, provides up to 25 percent of the cost of each project. 

Alcoa Fuels, Inc – Wabash County
Grant: $482,400 – Total project costs: $2.6 million.
Alcoa Fuels, Inc. received a grant in the amount of $482,400 to build a raw coal material handling facility at its Friendsville Mine in Wabash County.  The new facility is needed to move raw coal to the preparation plant and storage areas.  The project is critical to the reopening and expansion of the Friendsville Mine, which will create 70 new jobs and produce 1 million tons of coal per year.

American Coal Company - Saline County
Grants: $611,000 – Total project costs: $6.1 million. 
American Coal Company received a $611,000 grant to provide new longwall equipment needed to mine the higher-sulfur #6 coal seam at the Galatia Mine in Saline County.  This mine is the largest in Illinois, employing nearly 800 miners.  To maintain production, American must move operations from the depleted #5 seam to the #6 seam reserves.

Arclar, LLC - Saline County
Two grants: $1.6 million – Total project costs: $19.1 million.
Arclar, LLC received a grant for the development of the Wildcat Hills Mine in Williamson County.  This mine will have two working units.  This project includes surface preparation, installation of a ventilation fan, and construction of a substation, transmission line, water line and bath house.  Construction of the mine will create 60 construction jobs, with an additional 30 jobs after the mine is operational. 

Coulterville Coal Company – Randolph County
Grant: $667560 - Total project costs: $6.68 million.
Coulterville Coal Company received a grant of $667,560 to reopen the Gateway Mine (formerly Zeigler #11) in Randolph County.  The mine will utilize room and pillar mining to produce an estimated 2.3 million tons of steam and stoker coal annually.  The Gateway Mine is expected to be one of the largest industrial employers in the Perry/Randolph County region. 

DBT America – Williamson County
Grant: $321,000 - Total project costs: $1.6 million.
DBT, a major manufacturer and rebuilder of mining equipment, will complete a 7,000 square foot expansion of its existing Illinois repair shop allowing the company to grow its services to the local coal industry.  This major investment will position DBT as a local market leader as a “one stop shop” for parts and services, including longwall rebuilds allowing faster service, wider product offerings and enhancing the bottom line for both current and future coal mining operations.  This $321,000 grant will help retain 76 jobs and create 12 new jobs. 

Freeman United Coal Mining Co. – Macoupin County
Two grants: $654,000 - Total project costs: $3.27 million.
Freeman United Coal Mining Company received a grant of $180,300 to upgrade the man-hoist controls and surface equipment at the Crown III Mine in Macoupin County.  The improved hoist controls will ensure the safety of nearly 270 employees as they enter and exit the mine.  Freeman received a second grant of $473,700 to upgrade the mine ventilation system at the Crown II mine near Farmersville.  The upgrade will allow the mine to produce 2 million tons of coal per year and create 25 new jobs.

ICG Illinois, LLC – Sangamon County
Two grants: $372,640  - Total project cost: $1.86 million.
ICG Illinois received two grants totaling $372,640 to renovate the production shaft at the Viper Mine in Sangamon County.  Grant funds were used to remove fire-damaged structures and equipment and replace the coal elevator to ensure safe and reliable transport of raw coal to the surface.  The project will increase raw coal production by 20,000 tons per year and create 22 new jobs.

Illinois Dept. of Natural Resources - Office of Mines and Minerals – Sangamon County
Grant: $50,000  - Total project costs: $110,000.
Illinois Department of Natural Resources, Office of Mines and Minerals received a $50,000 grant to upgrade analytical lab equipment and purchase a second portable gas chromatograph.  These instruments allow for more efficient onsite analysis after significant mine accidents, ensuring safer and more productive mine operations.

Illinois Eastern Community Colleges – Richland County
Grant: $284,000  - Total project costs: $416,000.
Illinois Eastern Community Colleges in Southern Illinois received a grant of $284,400 to purchase three mining equipment simulators for use in miner training programs at area community colleges.  The program is intended to increase the pool of experienced miners in Illinois.

Knight Hawk Coal, LLC – Perry County
Grant: $750,000 million - Total project costs: $10 million.
Knight Hawk Coal, LLC received a $750,000 grant for the construction and development of the Prairie Eagle Underground Mine in Perry County.  The mine will utilize the Superior High-Wall Miner in a combination surface and high-wall operation to access deep surface mineable reserves.  The mine will produce approximately 1 million tons per year over 14 years.  

Monterey Coal Company – Macoupin County
Two Grants: $382,000  - Total project costs: $1.9 million.
Monterey Coal Company received a grant of $182,000 to upgrade the slurry treatment and handling systems at its #1 Mine in Macoupin County.  The project will maximize the mine's remaining refuse disposal capacity and provide clarified water for coal preparation.  Monterey Coal also received a $200,000 grant to provide ventilation for the next set of longwall panels in the Monterey #1 Mine.  Ventilation must be installed before underground development may proceed.

Southern Illinois University Carbondale – Jackson County
Grant: $87,500  - Total project costs: $175,000..
Southern Illinois University Carbondale received a grant of $87,500 to construct a pug mill ash conditioner and new ash loading system at the campus steam plant.  Relocation of the boiler ash truck loadout will reduce hazards associated with fugitive dust blowing across Route 51.  The pug mill will mix the coal with water before loading.  The project will create five construction jobs.

Wabash Mine Holding Company – Wabash County
Grant: $1.3 million - Total project costs: $6.5 million.
Wabash Mine Holding Company received a $1.3 million grant to construct a new slope and conveyor system at the Wabash Mine in Wabash County.  The project will eliminate six miles of inefficient beltlines and coal transfer points that now require extensive maintenance due to the age of existing systems.  The Wabash Mine improvements will retain 220 mining jobs and allow the company to continue mining 30 million tons of recoverable coal in reserve. 

White County Coal, LLC – White County
Two grants: $461,750 - Total project costs: $2.3 million
White County Coal received a $100,000 grant to install bore holes and equipment to pump coal refuse slurry underground into the abandoned Pattiki I Mine in White County.  This will increase the life of the above-ground refuse disposal area, retain 275 jobs, and create 10 temporary contractor jobs.  White County Coal received a second grant of $361,750 for the design and purchase of conveyor belt and structure, head drives, electric motors, high voltage lines, substations and a waterline.