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May 12, 1999


SPRINGFIELD -- Gov. George H. Ryan today announced that the second round of FY99 coal infrastructure grants, worth $4.1 million, will go to 14 projects designed to help coal companies move Illinois coal to markets throughout the world.

The grants, administered by the Illinois Department of Commerce and Community Affairs, will help create 86 new jobs in nine counties and retain jobs in the coal industry across Illinois.

"A strong Illinois coal industry is vital to the health of the state economy, and that's why taxpayers in every corner of this state have a stake in marketing Illinois coal," Ryan said. "These grants will help make our coal industry more competitive by addressing high-priority infrastructure needs at mines and terminals."

The grants are expected to leverage $20.7 million in private spending for equipment upgrades, facility expansions, road improvements and other infrastructure investments aimed at improving the quality and competitiveness of Illinois coal. With the latest round of funding, DCCA's Office of Coal Development and Marketing has distributed more than $11.5 million in state funds through the Illinois Coal Infrastructure Program over the past year, leveraging $78.3 million in private investment by Illinois coal producers, transporters and loading terminals.

"This program is a textbook example of how state government and the private sectors can work together to overcome adversity in an industry," DCCA Director Pam McDonough said. "It brings immediate benefits to the communities and businesses involved in coal mining, while laying the groundwork for the long-term recovery and growth of the Illinois coal industry."

Since the Coal Infrastructure Program began in 1996, more than $21 million in grants has been awarded for 76 projects, leveraging nearly $117 million in private investment.

(A list of companies receiving grants is attached.)



American Coal Company--Saline County
A $600,000 grant to expand the raw coal storage capacity at the Galatia Mine will remove a significant bottleneck in production. This project will eliminate production delays, reduce mining costs and create 4 new jobs.
Arclar Company--Saline County
A $900,000 grant will be used to build an overland conveyor system to move raw coal from Arclar's Portal No. 2 to the preparation plant 3.2 miles away. This project will eliminate excessive truck traffic across Illinois Route 13 and reduce the production costs by $.60 per ton.
Carbon Recovery Assoc.--Randolph County
The company will use a $135,000 grant to install coal cleaning equipment at its carbon recovery operation. Two jobs will be created.
Catlin Coal Co., Inc.--Vermillion County
The company will use a $200,000 grant to make equipment upgrades that will improve the mine's production efficiencies and meet future MSHA regulations on diesel engines in underground mines.
Consolidation Coal Company--Jefferson County
A $294,000 grant to install wider conveyor belts will increase production capacity from the east longwall at the Rend Lake Mine.
Cook Coal Terminal--Massac County
A $280,000 grant for rail infrastructure improvements along the access track to Cook Coal Terminal from the Burlington Northern Santa Fe main line railroad will increase terminal productivity and expand the capacity of transloading Illinois Basin coal. More than a mile of additional incoming track will improve the train handling capacity at the terminal. A second grant for $24,000 will be used to made track, switch and equipment upgrades to improve the terminal's positioning system for automatic railcar dumping. These improvements will shorten the unloading time for each unit train and increase coal handling capacity by 850,000 tons each year.
Cora Terminal--Randolph County
A $500,000 grant for upgrades to the train positioner will significantly shorten the time need to unload each train. In conjunction with future planned improvements, Cora will increase its coal handling capacity to 20 million tons per year.
Freeman United Coal Mining Company--Macoupin County
A $400,000 grant will help build a new slurry impound at the Crown III Mine, extending the life of the mine. A second grant for $200,000 will be used to construct a new ventilation shaft at Freeman's Crown II Mine. This project is the first of several aimed at developing a new section of the Freeman coal reserves.
Monterey Coal Company--Macoupin County
A $50,000 grant will be used to assess the market potential and economic feasibility of a truck loadout facility at the Monterey No. 1 Mine.
River Enterprises, Inc.--Hardin County
A $91,000 grant will be used to expand coal handling capacity at this terminal near Cave-in-Rock.
Silver Creek Construction Company--Knox County
A $99,000 grant will be used to resurface two miles of county road leading to the recently permitted Bear Mine. This new mine will employ up to 40 miners.
Turris Coal Company--Logan County
The company will receive a $500,000 grant to add a fourth production unit to its Elkhart mine, creating 40 new jobs. The additional unit will produce up to 700,000 tons of coal per year.


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