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In January, Jim Walter Resources (JWR) and parent company Walter Industries settled a civil suit with some of the families of the 13 miners killed in an explosion at its Alabama Blue Creek No. 5 mine.
A judge determined in November that safety violations were not to blame for the 2001 accident, caused by a roof fall that then triggered an explosion and injured four workers. Workers attempting to save the workers were killed in a second explosion.
In October, the company’s Blue Creek No. 5 Mine in Alabama resumed production after being idled in June. While the 250 affected employees put on “idle” status while the work was done were not expected back until year’s end, but the water ingress problem that triggered the stoppage was rectified earlier than expected.
With these incidents of tragedy and lost production behind them, Walter was able to focus on growth and development.
The company announced an expansion at its No. 7 mine in Alabama that would allow an additional 4.4 million tons to be mined and sold between 2006 and 2009. The increase was attributed to the mine’s planned east expansion, a $US135 million project that would significantly improve the longwall advance rate in the north panel and further development in the south.
It also agreed to invest almost $US20 million in a joint venture to develop Kodiak Mining Company, an underground mine effort in Alabama with a 4.3Mt reserve. Production is expected to commence in the first quarter of 2006 at about 700,000 tonnes per year.
Financial results confirmed Walter was headed in the right direction. Metallurgical coal was a winner, particularly in the company’s second quarter when it posted a four-fold jump in profit from $US8.3 million to $US41.5 million. During that same quarter, its net sales and revenue increased 16.1% over the prior year to $US441.2 million.
In September, Gregory Hyland was named chairman of the board, president and chief executive officer of Walter Industries, replacing a retiring Don DeFossett. The new chief is tasked with keeping the company on the path to success in 2006 and beyond.
