Published in the August 2009 Coal USA Magazine

Gryphon is the newest mine for the Kentucky-based producer and its first underground property. The property’s technical report, completed by Virginia-based consultant Marshall Miller and Associates, was submitted to authorities in May.

With a total of 68.4 million contiguous tons of recoverable Kentucky No. 9 coal in Webster and Henderson counties, Gryphon’s Illinois Basin foothold is expected to be in place for decades.

According to Phoenix spokesman Stephen McLean, at prime production levels the complex is anticipated to extract 3Mt per annum using a fleet of continuous mining machines running supersections.

Phoenix began consolidating the Gryphon reserve in 2007 with the acquisition of the Pratt reserve from Pact Resources. Later that year, the company added the Panama South reserve through a sublease with Penn Virginia Resource Partners.

Recently, in March 2009, Phoenix acquired the Petersburg reserve, which connects the Pratt and Panama South reserves, and provides the company access to a portal site immediately adjacent to the CSX railroad.

"Since 2007, we have substantially increased the reserve base at the Gryphon mining complex," Phoenix president David Wiley noted.

"In addition, we have significantly enhanced the value of Gryphon with the acquisition of a strategically located portal site and by the fact that it is one of the largest contiguous blocks of underground coal in western Kentucky."

Development progress continues at Gryphon, with a drilling program nearing completion and construction bid packages being prepared. Phoenix management is also putting the finishing touches on the complex’s surface layout, a preparation facility contractor is being retained and the company is meeting with equipment producers to determine which will supply the fleet of CMs and other machines.

According to McLean, Phoenix has already received the required permits for its original portal site and does not expect any delays related to the issue of the permits for the recently acquired site.

“Through the acquisition of the Petersburg reserve, we gained access to an alternative portal site which is larger than the original and, we believe, can sustain higher throughput capacity,” he said.

Phoenix has reported significant interest in Gryphon’s coal from utilities and regional producers based on its very low chlorine content. Chlorine, which is present in high concentrations in coals produced from many of Phoenix’s regional competitors, has corrosive effects on power plant scrubbers and boilers; thus, the mine’s production has the potential to be blended with higher chlorine coals to create a desirable product.