Acquisition of DTE Dickerson, LLC
Empire completed its acquisition on the DTE Dickerson property in May 2017 and the Company’s plan of operations is as follows:
The Dickerson Property has coal refuse and coal waste, which can be removed and blended at other nearby established coal mines. The Dickerson Property is located within 20-mile radius of several established mining complexes, which will allow DTE to customize blends of coal.
The refuse coal and waste coal will be blended with ROM coal, which will be suitable for power plants and other providers of energy. The market price for the blended coal will be at a discount to the NYMEX coal price, thus providing savings to the consumer. The blended coal can be easily loaded into railcars or barges, both of which are accessible to the Dickerson Property.
Assets in the Dickerson LLC included the following: (i) 436 acres of real estate located in Cadiz, Ohio, including all coal, coal slurry, coal waste and coal refuse located within the property; (ii) surety bond in the amount of $1,203,500; (iii) a slurry disposal area; (iv) prep plant; and (v) various permits.
While there have been no mining operations for more than 5 years, it is believed that there remains more than three million tons of refuse coal. At various times the property was mined by U.S. Steel and CONSOL Energy Inc.
The local mines in the area will allow DTE to blend and customize its coal specification to meet both international and domestic coal orders at a reduced price per ton. We have agreed in principle with a local mining company that they will sell us 70,000 tons of run of mine coal per month that we will blend with our refuse and waste coal at a ratio of 70% run of mine coal and 30% refuse and waste coal. Because of the proximate location of the local mining complex and our Dickerson Property, the cost of delivering the blended coal will be kept to a minimum.