Mine Re-Opening In Kentucky

Good news for Ohio County, Kentucky. Governor Ernie Fletcher has announced "Big Run Mine" will re-open as part of a coal industry revitalization. The Governors office issued a press release saying: The project will result in 923 new jobs with a total annual payroll of more than $45 million. Governor Ernie Fletcher visited Ohio County on Friday to celebrate Armstrong Coal Companys plans to resume coal production at the dormant Big Run underground mine in Ohio County. The project is expected to create 415 jobs at first and 923 jobs after four years. Average annual wages will be approximately $48,900, and total annual payroll will be more than $45 million on full employment. Plans for Armstrong Coal, formed in 2006, call for resumption of production at Big Run, construction of preparation plants and mixing facilities at a rail loading facility known as "Midway," as well as at a former barge loading facility known as "Smallhous Dock." The company also will rebuild a rail spur at the Midway facility and renovate the barge terminal. The Kentucky Economic Development Finance Authority (KEDFA) preliminarily approved Armstrong Coal for tax benefits up to $16 million under the Kentucky Industrial Revitalization Act, an incentive program to encourage the rehabilitation of manufacturing or coal mining and processing operations that are in imminent danger of permanently closing or that have closed temporarily. Under a 2007 amendment to the act, companies reopening coal mines that have been permanently closed may also be eligible for KIRA benefits. Before final approval of the project can be given, a third-party consultant must conduct a feasibility study and find that a project is financially feasible. Benefits also are contingent upon employment of 500 persons by the company within the commonwealth.