Mining Companies Exploration and Investment News

For the second time in two weeks, the Greene County Commissioners tabled a request which would have allowed a Sullivan-based coal mining company to purchase equipment via a $1 million Office of Community and Rural Affairs grant.

The second delay, however, came about due to Commissioners President Bart Beard’s absence from Monday’s meeting.

Because Beard was away, representatives of Lily Group LLC, the mining company, requested the decision be tabled.

The county commissioners originally agreed to be the sponsoring agency for the no-match state grant.

Lily officials now seek to use a portion of that $1 million grant to purchase underground mining equipment for the proposed Landree Mine.

Lily plans to open an underground coal mine south of Jasonville, by Spring of 2010 which would create up to 100 new jobs, said Lily CEO Rick Risinger.

He added the mining equipment will take between 90 and 120 days to manufacture. Thus, ordering the equipment now could save delays later.

However, Commissioner Steve Lindsey balked at that talk, suggesting that the mine’s proposed use of the money has changed from providing electrical supplies to buying equipment.

Originally, the grant was intended to assist with the cost of running electrical service to the mine site by Duke Energy, Inc., the record shows.

That proposal was changed, however. Now, the company plans to pay for the cost of the electrical line installation. Instead, it sought aid for the equipment purchase through this grant.

That change concerned Lindsey.

“I can’t figure out exactly what it is you’re wanting to do,” he said. “It’s changed every meeting that we have.”

Previously, commissioners had tabled talk of using the grant for an equipment purchase Oct. 19 when no representatives of the company were present to discuss it.

Now, commissioners attorney Marilyn Hartman said the Indiana Office of Community and Rural Affairs’ Disaster Recovery II and Economic Development Job Creation grant program only allows the disbursement of funds once all permits have been granted.

The Department of Natural Resources and other state agencies have not yet approved those permits, though Risinger said he expects approvals soon.

However, Hartman said commissioners should require an agreement between Lily Group and the equipment manufacturer which would insulate the county from any liability.

That pact, she said, would keep any debt or obligations from the county should the permit efforts fail.

Once the mine begins operation, at least 51 percent would benefit low-to-moderate income hires, and over half are expected to be hired from within Greene County.

“We will be a non-union operation,” Risinger said.

When asked by Commissioner Kermit Holtsclaw whether Landree would pay wages which were close to union scale, Risinger replied that he wasn’t sure what those wages were.

However, he said the mine must be competitive with other area operations.

It’s also unlikely, Risinger said, that 100 experienced miners can be hired for the area. Some must be trained, he added.

Holtsclaw expressed concern that much of the 3,300 acres which have been leased or bought by the company has a substantial amount of water, leading to risks of flooding.

“There’s an awful lot of water there,” Holtsclaw said, fearing the mine might flood as the now-closed Pandora Mine once did.

However, Risinger said geological surveys and studies suggest neither should be a problem.

“There are risks in everything,” he added.

Earlier mining efforts as far back as the 1920s also targeted the area, though the new mine targets deeper veins.

In other business, commissioners:

* Approved the purchase of a new laptop for the Greene County Health Department. The $701 computer will be paid for through the county’s share of the state’s tobacco settlement money.

* Approved soil surveys along County Road 75E between CR 710S and 800S aimed at the eventual construction of a bridge which will allow Interstate 69 to cross it.

The soil surveys are expected to be completed within two weeks, Hartman said, with area residents and farmers who use the road for harvesting expected to be notified.

All work by K&S Engineers will be done during the day, she added.

* Told a Jasonville man his concerns about property inside the town limits should be addressed by the city council.

Steve Morrison raised concerns over an alley which abuts his property, but which he said the city has never officially recognized as an alley.

Lacking a way into his property, Morrison sought help from commissioners, but Hartman informed him because the property is between Washington and Meridian streets, it falls inside the corporate limits of the city.

She recommended he contact a lawyer and approach the city council again.