Intentions Announced for Underground Mine in Kentucky

Intentions Announced for Underground Mine in Kentucky

A veteran of the Western Kentucky coal industry has announced plans to open a mine in Webster County.

Ron Siler of Newburgh says his Henderson-based Pact Resources LLC is seeking permits for an underground mine near Sebree that could someday employ 120 to 140 miners. An economic development group reports Pact Resources hopes to begin construction in 12 to 14 months, with initial coal production expected to begin in 2009.

Siler’s company controls 90 million tons of coal through a combination of leases, options and direct ownership. President Kevin Sheilley of the economic development group Northwest Kentucky Forward says the coal includes some of the former Panama Mine reserves. That mine, operated by Peabody Coal in the 1970s, closed because of adverse mining conditions.

Sheilley says he’s been told that improved mining technology will enable a new mine to operate “in a cost-effective manner” and produce 1.5 million tons of coal a year.

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