Platts said Horizon filed a copy of the purchase agreement Monday with its bankruptcy court. The sale agreement outlines that if approved by the judge, there would be a final auction for Elkhart to see if better bids were offered.
Peabody’s bid is the largest offered so far for any Horizon asset, with the next largest in the pending US$25 million bid by Appalachian Fuels for the Bowie No. 2 longwall mine, Platts said.
The Elkhart mine is located in Illinois and has been operating since 1982. Turris produces both steam and stoker coals, 85% of which are steam sales and the remaining 15% are stoker sales.
The coal is extracted with continuous mining machines, and loaded into battery ramcars which transport the coal to our mine belt system. This coal is then lifted vertically up a 300-foot shaft by means of a "sandwich" belt, or High Angle Conveyor (HAC).
According to the Turris website, the company has seen the Illinois coal market prices fall by nearly 50% since opening the coal mine and has decreased operating costs over 55% during the same period. It has increased production and clean tons per manhour by over 110% since 1992.
