Illinois coal industry poised for rebound

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By Becky Malkovich, The Southern | Posted: Wednesday, February 17, 2010

MOUNT VERNON – With four coal mines under construction and another seven with permits to build pending, the Illinois coal industry is poised for a rebound.

However, Illinois Coal Association President Phillip M. Gonet warned a crowd gathered at a coal symposium Tuesday in Mount Vernon, there are challenges to overcome before coal can be pronounced king again.

The symposium was sponsored by the Tedrick Group and featured industry experts discussing the latest trends in research and development as well as potential obstacles the industry faces.

Gonet said some of the biggest challenges to the revival of the coal industry include proposed cap-and-trade legislation that would limit carbon emissions. While the legislation is stalled, if passed, “It would kill the coal industry.”

Another challenge is posed by the Sierra Club and other environmental groups, he said.

“The Sierra Club is actively involved in every permit now, and that adds to the cost of doing business and lengthens the entire permitting process,” he said.

For instance, the permitting process for one Illinois mine included an administrative hearing that went on for nearly a year, he said.

“So the staff was in the hearing for almost a year going over challenges, rather than working on new permits,” he said. “That kind of thing has two negative affects: It slows down the permitting process and causes companies who are looking at Illinois to say, ‘Why go there when it will cost us so much more money?’ We need an expedited permitting process and we need a state that is friendly to business.”

Other topics of discussion included gasification developments, coal mine and bed methane, productivity advances and sequestration.

John Mead of the Coal Research Center at Southern Illinois University said the symposium focused on recent research and development and how those apply to what is happening with the coal industry.

“Right now we’re looking at how government and industry respond to the changing energy and environmental needs. Also very important is how can we match that with technology developments?” Mead said. “How do we keep pace with the regulatory changes and how are regulatory changes recognizing the state of technology? How do we move the research and development into commercial uses?”

Illinois, he said, is on the leading edge of clean coal technology.

“That’s so important for the future of the industry in Illinois,” he said.

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