The Illinois Basin is forecast to experience a tremendous resurgence of interest similar to that experienced in the 1970s, much in part due to the developing scrubber and export market and renewed interest in coal gasification and coal-to-liquids, according to Wood Mackenzie subsidiary, Hill & Associates, in its latest comprehensive review of coal production in the region.

"If markets develop, the Basin’s production is poised to expand more than two-fold in the next 10 years," said John Hanou, vice president, Hill & Associates. "Given the Basin’s tremendous reserve of low-cost, medium and high-sulfur coal, existing producers are all planning expansions, in addition, many newcomers also are entering the market with plans to develop a multitude of mines."

The Illinois Basin’s turn-around has been long-coming. The region suffered great losses due to Phases I and II of the Clean Air Act Amendments of 1990, when utilities switched to low-sulfur Powder River Basin coal to meet the new mandates. By 2000, production had declined to 89 million tons from 145 million tons in 1989. In 2007, production rebounded somewhat to 97 million tons, due to shortages in the eastern U.S and new scrubbing at several power plants.

"Basin production capacity will probably expand to 103-104 million tons in 2008," said Hanou. "Based on our 10-year analysis, we have identified enough projects to suggest that Illinois Basin production could expand to more than 250 million tons per year by 2017 with an upside potential to produce more than 350 million tons, assuming demand is present."

The Illinois Basin contains a tremendous underground reserve base, which is five to 10 times larger than the Pittsburgh No. 8 seam reserve base in Northern Appalachia. As the surface reserves deplete and as demand increases, these reserves will likely be developed in the next 10 years.

The top three producers currently (Peabody, Alliance, and Murray) control 57% of the market; however, by 2011, we estimate that this will fall to about 42%. Peabody is likely to retain its lead in 2011, but if The Cline Group is successful in developing the mines that the company has proposed, Cline will likely become the largest producer in the Illinois Basin post 2011.

Hill & Associates' latest review of the Illinois Basin is published in the Coal Supply Service. This update encompasses Indiana, Illinois, and West Kentucky and includes mine-specific data on coal reserves, quality, production costs, and capacity at active, idled, and proposed mines. In total, more than 240 mines and reserves are analyzed.

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WEG has announced a program for ordering custom designed AC induction motors for a wide range of horsepower, voltage and speed ratings. Customization can include special shafts, special sealing or ventilation, special insulation requirements, and other factors, allowing an industrial user to exactly replace a motor used in an existing machine or facility.

"Until now, customers with an old nonstandard size motor were faced with a challenge–either modify a piece of machinery to accept a new standard size motor or continue to rewind the existing motor even as its performance continued to decline," explained Gerardo Elias, Marketing Manager. "Our new Custom motor program will enable these users to exactly replace or even upgrade an existing motor within the physical limits of their machinery or process."

Elias noted that WEG had a long tradition for building custom motors. "For example, our motor experts designed and installed the world’s largest induction motor at the Collahuasi mine in northern Chile to drive long conveyor belts removing copper ore and overburden. This motor weighed 15,000 kg and delivered 2,788 HP with an efficiency of 97.5%. And while not every custom motor will be this large, we are committed to meeting our customers needs going forward." www.wegelectric.com

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The Czech government will give 800 million crowns every year to the regions affected by coal mining and energy production from coal, Czech News Agency reported. The money will come from the dividends the state receives from the CEZ power utility. The largest sum, or 450 million crowns per year, will go to the Usti region. Regional authorities will receive the money that should be used for the revitalization of the landscape affected by coal mining. The aim is to revitalize the landscape so that people can live in it again. The current law orders mining companies to give money to the repair of environmental damage, but the sums were too low and the revitalization often had to be covered from local budgets. The cabinet also approved the plan to give 3 billion crowns to the coal-mining area of northwest Bohemia that are to go for land revitalization. In this way, the government will meet the promise made in 2001 to earmark 15 billion crowns to the Usti and Karlovy Vary regions. Until now, the state has distributed 11 billion to the two coal-mining regions. Coal mining has affected some 350 km2 in the Usti region.

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