brook mine overview - sheridanwyomingchamber.org
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Brook Mine Overview!Sheridan (Northern Powder River Basin), Wyoming!
November 2014!
Who is RAMACO?!
Brook Mine-Wyo. (thermal coal) 1.1 billion tons
RAM Terminal-La. 600 Acre on Miss. River
Elk Creek-W.Va. (met coal) 90 million tons
Ram Mining-Pa. (met coal) 8 million tons
RAMACO was formed by Randall Atkins & Michael Bauersachs, in partnership with Yorktown Partners.!
RAMACO - Profile !! RAMACO was formed in 2011 by Randall Atkins and Michael Bauersachs in partnership with
Yorktown Partners . Since inception, RAMACO has acquired roughly 1.2 billion tons of coal reserves in all major US coal basins. RAMACO is now one of the largest private coal reserve and infrastructure development groups in the US.!
! Yorktown Partners has invested exclusively in the energy industry for over 25 years. Invested capital currently under management by various Yorktown partnerships totals over $6.0 billion. !
! The principals of RAMACO also originally formed RAM Terminals, LLC, with Yorktown, which owns a 600 acre site on the Mississippi River near Myrtle Grove, LA. This site has been initially permitted and will ultimately be developed as a major coal export terminal facility. !
! RAMACO owns, and is now actively developing, the Brook Mine which is a Northern PRB thermal coal reserve near Sheridan, WY. Brook contains approximately 1.1 billion tons of high BTU subbituminous coal, of which approximately 920 million tons are owned and 140 million tons are leased. The land, mining rights and reserves were acquired from the original owner Sheridan Wyoming Coal Company. !
! RAMACO owns the Ram Mining development property and metallurgical reserves (Mathies Mine) in southwestern Pennsylvania, acquired from Alpha Natural Resources, containing approximately 8 million tons of coal. The property is in permit phase.!
! RAMACO owns and is near opening the Elk Creek metallurgical mining complex in Southern West Virginia. Acquired from CONSOL, it contains approximately 90+ million tons of coal reserves and resources. This mine will begin operation in 2015.!
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" Brook Mine (Wyo.) – Overview "
!! Over 1.1 billion tons of principally fee-owned reserves located six miles north of
Sheridan, WY. Ramaco acquired reserves and property in 2011 from the original owner, Sheridan Wyoming Cola Company, who had continuously owned the property since 1914. Portions of the property had been previously surface and deep mined beginning over 100 years ago.!
! Brook Mine contains nearly 100 million recoverable tons in initial mining areas being permitted, of which 95% of tons are owned.!
! BNSF rail and I-90 bisect the coal reserve. !! Advantaged by no BLM bonus payments or royalties.!! Advantaged by lower severance taxes in WY (7%) vs. MT (15%).!! Initial mining permit application was filed on October 30, 2014, which will include
surface mine development of trench cuts, facilitating the use of low-cost highwall mining (“HWM”), a mining technique used primarily in eastern mining operations.!
! Expected initial production in 2016.!! Anticipated full-scale production of 6-8 MMTPY.!! Initial reserve area sufficient to support nearly 20+ years of mining.!! Negotiations are currently underway with domestic utilities to purchase the majority of
the of Brook Mine production.!
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Brook Mine – Location Maps!
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Brook Mine – Property Map!
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Brook Mine Project Priorities!
! Contribute to the domestic production and supply of thermal coal in a safe and environmentally responsible manner.!
! Using a combination of low strip ratio surface mining and low-cost highwall mining to reduce both surface disturbance and potential environmental impacts.!
! Fair return on investment.!! Develop a coal project in north-central Wyoming in
cooperative partnership with regulatory agencies, local government, and local stakeholders.!
!
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Brook Mine – Economic Project Highlights!
! Estimated tonnage to be mined annually during initial ramp up is 2MM/tpy with full production at 8MM/tpy.!
! Local tax receipts to Sheridan County over life of mine are expected to be $128 million (in Ad Valorem/Property taxes). By 2026 the Brook Mine will pay 26% of all Sheridan County Ad Valorem/Property taxes.!
! Total tax receipts over life of mine are expected to be over $377 million. !
! Direct and indirect jobs created in Sheridan County expected to peak at 550 per year.!
! Total new annual local wages into Sheridan economy are expected to be over $30 million per year, with over $464 million in projected wages over the project life.!
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Brook Mine – Jobs Creation!
0!
100!
200!
300!
400!
500!
600!
2015! 2016! 2017! 2018! 2019! 2020! 2021! 2022! 2023! 2024! 2025! 2026! 2027! 2028! 2029! 2030! 2031! 2032! 2033! 2034!
Estimated Direct and Indirect Jobs Created by the Brook Mine!
Direct Jobs Production! Indirect jobs Production! Direct Jobs Construction! Indirect Jobs Construction!
Brook Mine – Salaries and Wages!
Direct Production Jobs, $267,680,026 !
Direct Initial Construction Jobs,
$4,290,000 !
Indirect Production Jobs, $191,122,100 !
Indirect Initial Construction Jobs,
$1,248,000 !
Total Wages!$464,340,126!
Brook Mine – Life of Mine Tax Receipts!
Severance,))$114,294,180))
Federal)Black)Lung,))$50,948,700))
Ad)Valorem/Property)Taxes,))$127,868,112))
ReclamaIon,))$25,937,520))
Sales)and)Use)Taxes)(direct),))$27,312,919))
Sales)and)Use)Taxes)(indirect),))$9,701,301))
Payroll)Tax)Direct,))$20,941,692))
Total&Projected&Tax&Revenues&&$377,004,424&
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"Brook Mine – Life of Mine Ad Valorem/Property Tax Receipts "
!
!
)$P))))
)$5,000,000))
)$10,000,000))
)$15,000,000))
)$20,000,000))
)$25,000,000))
)$30,000,000))
)$35,000,000))
)$40,000,000))
)$45,000,000))
2016) 2020) 2022) 2024) 2026) 2028) 2030) 2032) 2034)
Ad&Valorem
/Prope
rty&&Tax&Receipts&
Year&
RAMACO)Property)Taxes/Ad)Valorem)
)Sheridan)County)Property/Ad)Valorem)Taxes)(2013)Level))
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Brook Mine – Outreach Values!
! Adherence to process!! Hiring and purchasing equipment and services locally
wherever possible!! Responsible and respectful interactions with landowners
and use of landowner properties!! Timely response to landowner concerns!! Acknowledgement of issues of importance to the public
and thoughtful mitigation of risks and concerns!!
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Brook Mine – Concerns of Regulatory Agencies!
! Complete and thorough permit application!! Mining and restoration!! Protecting health and safety!! Wildlife and vegetation!! Coordination with other agencies!! Maintaining open lines of communication!! Cumulative impacts!!
" Brook Mine – Concerns of Local Government "
!! Jobs!! Roads!! Coal transport!! Socioeconomic Issues!! Water quality!! Mine life!! Infrastructure needs!! Emergency management and response!
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Brook Mine – Concerns of Local Stakeholders!
! Jobs!! Land Values!! Roads!! Dust control!! Impacts to surface and groundwater!! Transparency!! Reclamation and restoration standards!! Aesthetics of development activities!! Wildfires!! Potential public health impacts!
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Brook Mine – !Initial Mining Phases and Permit Boundary!
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Brook Mine – !Initial Mining Phases and Pit Layout!
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Brook Mine - Reserve and Resource Control!
Category! MM Tons! %! Acres! %!
Owned! 945! 86! 13,062! 90!
State Leases! 125! 11! 616! 4!
Private Leases! 35! 3! 825! 6!
TOTAL! 1,105! 100! 14,503! 100!
Brook Mine – "ADDCAR Highwall Mining Machine!
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Brook Mine –Example of Highwall Miner!
164 ft. Pit Floor Width Configuration
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"Brook Mine – Permitting Activity "
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! Initial Phase 1 surface mining permit application was submitted to Wyoming DEQ in late October 2014.!
! Permit issuance expected by late Q3 2015.!! Infrastructure for rail and related loading facilities expected to
commence Q3 2015.!! First mining activity as early as Q1 2016!! Phase 2 baseline environmental monitoring and preparation
underway for further expansion:!" Submittal of Phase 2 permit application targeted for Q3 2015, as
an amendment to Phase 1 permit.!" Additional production from Phase 2 anticipated in 2017.!
!
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"Brook Mine – Marketing Considerations"
!
! Northern PRB (“NPRB”) coal reserves typically contain higher heat (9,110 BTU) content than the large, southern PRB (“SPRB”) mining operations.!
! RAMACO’s coal reserves also have lower sodium than its other NPRB competitors.!
! Ramaco is currently in negotiation with several domestic utilities that have expressed interest in RAMACO’s high-BTU, low-sodium thermal coal product.!
! NPRB coal also has significant advantages for potential Asian export markets, where demand for thermal coal is projected to dramatically increase in the mid-term:!" Higher heat content than SPRB mines.!" Lower rail rates than SPRB mines to west coast terminals due to a nearly
200 mile transportation advantage.!" RAMACO shares its transportation advantage with Cloud Peak’s Spring
Creek Mine and Ambre’s Decker Mine, but unlike these mines also additionally benefits from Wyoming’s favorable severance tax compared to Montana.!!!!!
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RAMACO Wyoming. LLC!1101 Sugarview Dr.-Suite 201!
Sheridan, Wyoming 82801!!
RAMACO, LLC!250 West Main St.-Suite 210!Lexington, Kentucky 40507!
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