United States

Buchanan Mine

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Overview

Mine TypeUnderground
StatusActive
Commodities
  • Coal (metallurgical)
Mining Method
  • Longwall
  • Continuous
Production Start1983
Mine Life2044
SnapshotBuchanan is one of the lowest operating cost Low-Vol mines in the U.S. as measured by cash cost per tonne.

Owners

SourceSource
CompanyInterestOwnershipInvestor's Info
Coronado Global Resources Inc. 100 % Indirect
Buchanan Minerals, LLC (operator) 100 % Direct
Buchanan Mine, located in Mavisdale, is owned and operated by Buchanan Minerals, LLC wholly-owned subsidiary of Coronado Global Resources Inc.

Sev.en Global Investments has signed a binding agreement to acquire a 51% interest in Coronado Global Resources Inc. (CRN:ASX), a leading international producer of highquality metallurgical coal from The Energy & Minerals Group (EMG).

Contractors

ContractorContractDescriptionRef. DateSource
American Electric Power Company, Inc. Power supply Electricity is sourced from the American Electric Power Company. Dec 31, 2022

Deposit type

  • Sedimentary

Summary:

The Buchanan mine extracts coal from the Pocahontas #3 seam of the Pennsylvanian-age Pocahontas Formation, which is the principal minable coal seam of that formation. The seam thickness averages 1.58 meters within the mining area. The Property lies in the Central Appalachian Coal basin in the Appalachian Plateau physiographic province. The coal deposits in the eastern US are the oldest and most extensively developed coal deposits in the country. The coal deposits on the Property are Carboniferous in age, being of the Pennsylvanian system. Overall, these Carboniferous coals contain two-fifths of the US’s bituminous coal deposits and extend over 1,448 kilometers from northern Alabama to Pennsylvania and are part of what is known as the Appalachian Basin. The Appalachian Basin is more than 402 kilometers wide and, in some portions, contains over 60 coal seams of varying economic significance. Seams of economic significance typically range between 0.30 meters and 1.83 meters in thickness, with relatively little structural deformation. Regional structure is typically characterized by gently dipping strata to the northwest at less than one percent. Seams of the Pocahontas Formation have historically been mined in the Buchanan No. 1 Mine with the Pocahontas No. 3 seam being the principal seam in the formation. Coal from the area has historically sold in primarily metallurgical markets. The coal produced at Buchanan No. 1 is typically low volatile (<23% volatile matter) bituminous coal. Due to the value of the Pocahontas No. 3 (P3) as a low-volatile coking coal, it has been extensively mined in the region. Multiple seams make up the P3 horizon in the projections for the Property. The P31, P32, P33, and 345, all individual splits of the P3 horizon, are present on the Property and the projected areas. The mineable bench in the P3 horizon consists of various configurations of the seams, depending on thickness and relative location, as seam splitting does occur in various parts of the Property. The various bench configurations are: 1) full-seam bench (P31, P32, P33, and 345), also known as the P3 bench; 2) P31, P32, P33 bench; and 3) P32, P33, and 345 benches. The full-seam bench (P3) thickness ranges from 1.22 to 3.44 meters with an average of 1.86 meters, the P31, P32, P33 bench thickness ranges from 1.22 to 2.10 meters with an average of 1.43 meters, and the P32, P33, 345 bench thickness ranges from 1.22 to 2.71 meters with an average of 1.65 meters. The seam is situated below drainage throughout the Property and is accessible by existing mine shafts. Floor and roof strata vary throughout the projected mine area with floor strata including fireclay, claystone, shale, sandy shale, and sandstone, but primarily being fireclay and shale. Roof strata varies throughout as well but primarily is composed of sandstone, sandy shale, and shale.

Reserves at December 31, 2022



Mineral Resources are reported inclusive of Mineral Reserves.
CategoryTonnage CommodityMarketable Coal
Proven 144.9 Mt Coal (metallurgical) 87.5 Mt
Probable 8.7 Mt Coal (metallurgical) 5.4 Mt
Proven & Probable 153.6 Mt Coal (metallurgical) 92.9 Mt
Measured 191.9 Mt Coal (metallurgical)
Indicated 16.1 Mt Coal (metallurgical)
Total Resource 208 Mt Coal (metallurgical)

Mining Methods

  • Longwall
  • Continuous

Summary:

Buchanan is a production-stage mining property, consisting of one active underground mine and supporting infrastructure that produces Low-Vol Met coal using the longwall mining method.

The Buchanan mine extracts coal from the Pocahontas #3 seam of the Pennsylvanian-age Pocahontas Formation, which is the principal minable coal seam of that formation. The seam is situated below drainage throughout the Property and is accessed by vertical shafts. The seam thickness averages 1.58 meters within the mining area.

The Buchanan mine extracts coal using a single longwall system supported by six continuous miner sections, which develop main entries and gate roads in preparation for the longwall. Each continuous miner section is equipped with one or two continuous miners, two roof bolters and two or three coal haulage units. After extraction, a series of conveyor belts deliver raw coal to an underground storage bunker. The Buchanan mine complex uses a skip hoist system to lift raw coal to the surface.

Longwall production is scheduled for approximately 295 to 312 days each year, which represents production on Monday through Saturday with allowances for holidays and longwall moves. On each day, the continuous mining sections and longwall produce coal on three shifts. The sections are configured as regular sections with one continuous miner available for production on each section. Productivity is planned at the rate of 17.6 meters to 21.7 meters of advance per shift of operation for the continuous miner sections, and 6.28 meters to 7.44 meters per shift of longwall retreat.

The Buchanan Mine is currently Coronado’s only longwall operation. The longwall shearing machine is used for extraction of coal at the production face. A chain conveyor is used to remove coal from the longwall face for discharge onto the conveyor belt which then ultimately deliver it to an underground storage bunker. Development for the longwall is conducted by the extraction of coal from the production faces using continuous miners and haulage using shuttle cars to a feeder-breaker located at the tail of the section conveyor belt. The feeder-breaker crushes large pieces of coal and rock and regulates coal feed onto the mine conveyor. Roof-bolting machines are used to support the roof on the development sections of the longwall mines. Roof-bolting machines are used to install roof bolts, and battery scoops are available to clean the mine entries and assist in delivery of mine supplies to work areas. Other supplemental equipment such as personnel carriers, supply vehicles, etc., are also used daily.

Mine conveyors typically range in width up to 1.83 meters. Multiple belt flights are arranged in series to deliver raw coal to the underground storage. Along the main and sub-main entries and panels, a travel way is provided for personnel and materials by rubber-tired equipment or on rail. The Buchanan No. 1 Mine utilizes a skip hoist in order to transport ROM coal from the underground storage bunker to the surface where the coal may be sampled, crushed and washed in the preparation plant and stockpiled to await shipment.

Comminution

Crushers and Mills

Milling equipment has not been reported.

Processing

  • Wash plant
  • Vacuum filtration
  • Flotation
  • Dense media separation
  • Dewatering

Summary:

The Buchanan Plant operates at a feed rate of approximately 1,270 raw tonnes per hour (tph). Coarse material is washed in a heavy medium vessel, the intermediate-size material is washed in heavy medium cyclones and fine material is washed using froth flotation. These processes are supported by the requisite screens, centrifuges, vacuum filters, sumps, pumps, and distribution systems. Processes and equipment are typical of those used in the coal industry and are in use in nearly all plants in the Central Appalachian Basin.

Water Supply

Summary:

The mine complex sources water from streams that flow over Company-owned property. The mine also utilizes ground water from an old abandoned mine.

Production

CommodityUnits20222021202020192018201720162015
Coal (metallurgical) Mt 3.94.43.44.54.74.94.54
All production numbers are expressed as clean coal.

Operational metrics

Metrics202220212020201920182017
Hourly processing rate 1,270 t1,270 t
Coal tonnes mined 7.2 Mt of ROM coal5.8 Mt of ROM coal6.9 Mt of ROM coal7.3 Mt of ROM coal7.3 Mt of ROM coal

Production Costs

CommodityUnits20192018
Cash costs (sold) Coal (metallurgical) USD 52.2 / t   61.6 / t  
Total cash costs (sold) Coal (metallurgical) USD
Operating margin Coal (metallurgical) USD

Financials

Units202220212020201920182017
Capital expenditures M USD 52.5   33.2   35.3  
Revenue M USD 405.4   510.4   465  
After-tax Income M USD 107   130.7   170.2  
EBITDA M USD 185.6   212.5   211.2  
Book Value M USD 387.6  367  385   374  

Heavy Mobile Equipment

Ref. Date: December 31, 2022

SourceSource
HME TypeQuantity
Bolter 12
Continuous Miner 6
Shuttle car 12

Personnel

Mine Management

Job TitleNameProfileRef. Date
Purchasing Manager Chris Stover LinkedIn May 29, 2023
Vice President, Concentrating Van Davis LinkedIn May 29, 2023
VP Safety Aaron Price LinkedIn May 29, 2023
VP, Engineering Bob Cline LinkedIn May 12, 2023

EmployeesTotal WorkforceYear
639 639 2022
573 573 2021
544 544 2020
580 2019
591 2018
564 2017
469 2016

Aerial view:

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