White Oak Mine
|This article is part of the Global Coal Mine Tracker, a project of Global Energy Monitor and the Center for Media and Democracy.|
White Oak Mine (also known as White Oak Mine No. 1) is a U.S. underground coal mine in Hamilton County, Illinois. While initially owned by White Oak Resources LLC, Alliance Resource Partners acquired the mine in 2015 when it bought the entire equity interest in White Oak Resources. Upon acquiring the mine, Alliance Resource Partners renamed it Hamilton Mine No. 1.
The below satellite image shows the location of the White Oak Mine (now Hamilton Mine No. 1) in Hamilton County, Illinois.
White Oak Mine (now Hamilton Mine No. 1) is an underground mine located near the city of Dahlgren in Hamilton County, Illinois, in southern Illinois.
Governor Pat Quinn announced approval of the White Oak mine on October 23, 2010. White Oak Resources invested more than $400 million in construction of the mine, which opened in fall 2014 with a projected annual production of 7.5 million tons of coal. At that time, White Oak Mine No. 1 was the first of four mines proposed for the area by White Oak Resources.
White Oak CEO Mike Tracy said the company was looking to market its coal to “high-volume users” such as Ameren and other large utilities; eventually, the company looks to market its coal overseas, he added.
On Sep. 22, 2011, Alliance Resource Partners said it would invest $400 million to $525 million over three or four years in the coal-mining operation. The deal included coal producer Alliance taking an ownership stake in White Oak Resources. Alliance invested $69.5 million at closing, and committed $140 million to acquire coal reserves, which it planned to lease back to White Oak for royalty payments.
Alliance also committed up to $110 million to buy coal-handling facilities, and it planned to give White Oak up to $100 million in backstop financing for mining equipment. Alliance said the deal would add to earnings and distributable cash flow once mining production began.
According to the McLeansboro Times Leader archives, Jim Lindsey of Energy Plus negotiated a deal with Hamilton County in 2006, representing the McLeansboro and North Hamilton County coal associations as a coal broker. Lidsey was able to negotiate a contract with Hamilton County for 7,700 acres in coal reserves it received from Exxon Coal USA in 1992. In early 2008, it was announced that Hamilton County would have two coal mines with a third in the planning stages by White Oak Resources LLC.
- Parent Company: Alliance Resources Partners
- Location: Hamilton County, Illinois, United States
- GPS Coordinates: 38.1702261, -88.6013872 (exact)
- Status: Operating
- Production Capacity: 6.3 million tons (2018)
- Total Resource:
- Mineable Reserves: 545.8 million tons
- Coal type: High-sulfur
- Mine Size:
- Mine Type: Underground
- Start Year: 2014
- Source of Financing:
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- "Alliance to acquire 100 percent of White Oak Mine" Evansville Courier Press, July 26, 2015.
- Alliance Resource Partners SEC Filing 10-K Annual Report U.S. Securities & Exchange Commission, accessed November 2019.
- Mines & Facilities: Illinois Basin Alliance Energy Partners, accessed November 2019.
- Evan Shields, "Governor Quinn Announces Approval of New Coal Mine in Hamilton County: White Oak Mine Will Create 650 Jobs, Boost Regional Economy" Illinois Government News Network, October 23, 2010.
- Paul Lorenz, "CEO: Third mine on drawing board" Mcleansboro Times Leader, September 17, 2008.
- "Alliance to invest up to $525M in coal project" AP, Sep. 22, 2011.
- "Coal Association Investigation Sale Of Coal Mine Rights" Mining Exploration News, Dec. 25, 2008.