The Leer South Mine in Barbour County, West Virginia, which produces high-quality metallurgical coal, was sealed for the second time this year Monday, this time because of high carbon monoxide levels.
The mine is operated by Core Natural Resources, which is based in Canonsburg, Pennsylvania. Core was formed in January on the completion of the merger of Consol Energy and Arch Resources. The mine produces metallurgical coal. Its development cost about $392 million, Arch officials said in 2021 as it was about to open.
The mine fire was discovered on Jan. 13.
Monday, Core issued a statement saying Core personnel and regulatory officials re-entered the sealed area of the mine June 10. They re-established ventilation to the full mine, restored hydraulic pressure along the longwall face and evaluated the major equipment and infrastructure. The longwall was largely unaffected by what Core describes as the combustion event. Major components and systems remain in good condition.
On June 26, after more than two weeks in the mine, the operating team found it necessary to evacuate the mine and begin restoring pumpable seals to the affected area in the wake of an increase in carbon monoxide levels, the statement said.
ƵThe Core team is working closely with federal and state officials on a plan to recover and reposition the longwall equipment in an effort that is expected to be completed within four months,Ƶ the Core statement said.
In the statement, George J. Schuller Jr., CoreƵs senior vice president and chief operating officer, said, ƵWhile recent developments are expected to delay the restart of the longwall, we are encouraged by the condition of the mine and related infrastructure, and optimistic about the prospects of resuming longwall production during the fourth quarter.Ƶ
Mitesh Thakkar, CoreƵs president and chief financial officer, added, ƵCore maintains a property damage / business interruption insurance program and placed insurance carriers on notice immediately after the Leer South event occurred earlier this year. ƵCore has kept the carriers updated on developments to date and anticipates an insurance recovery in excess of $100 million.Ƶ
A more detailed update on ongoing efforts at Leer South will be made when Core releases its second quarter earnings release in early August, the statement said.
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