Coal

Mines

Shoal Creek produces a medium-volatile, low-sulfur metallurgical coal exported all over the world through the Port of Mobile, Alabama. The quality of Shoal Creek’s coal is consistent with an ash range of 9 to 10.5 percent and sulfur of 0.80 percent. This coal is very desirable for its medium volatility and strong coking characteristics.

The coal is mined underground using both longwall and continuous mining operations. The preparation plant is a 2,000-ton per hour plant that accommodates various sizes of coal and is capable of washing over 11 million raw tons of coal per year. Clean coal is stockpiled and then conveyed to a barge for load out. The barges are then taken to the Port of Mobile and loaded into vessels for worldwide distribution.

Located near the central portion of the Warrior Coal Basin in Alabama, Drummond’s Shoal Creek operation stretches across three counties – Jefferson, Tuscaloosa, and Walker. The mine’s main portal is in Walker County, while the preparation plant and production slope are situated in Jefferson County, approximately 45 miles from Birmingham. It has the distinction of being one of the largest underground facilities in the country. The operations have access to truck and river transportation systems, including water access to ports in Mobile, Alabama, and New Orleans, Louisiana.

Twin Pines includes four separate active surface mines, located in Alabama that each produce metallurgical, steam, and pulverized coal injection (PCI) coal. The coal is mined using truck/shovel fleets. In terms of quality, the coal has an ash range of 4 to 10 percent and sulfur content of less than one percent.

Located in Jefferson and Tuscaloosa counties near the cities of Adger and Bessemer, Alabama, the operations have access to truck, rail, and river transportation systems, including water access to ports in Mobile, Alabama, and New Orleans, Louisiana.

Drummond Company, Inc. and its affiliates mine coal in Colombia through an 80 percent ownership interest in Drummond International, LLC, a joint venture with a subsidiary of ITOCHU Corporation formed in October 2011. Drummond International, through its subsidiaries, including Drummond Ltd., owns and operates coal mining and transportation infrastructure in Colombia.

During the late 1980s, a subsidiary of Drummond acquired the mining rights to significant coal reserves in northern Colombia. Development commenced in the early 1990s. The characteristics of Drummond’s Colombian coal compare favorably with those of other internationally marketed steam coals. Drummond’s coal is one of the lowest sulfur and ash coals currently exported from Colombia.

Our Colombian steam coal meets worldwide sulfur regulations and is also very low in mono-nitrogen oxides emissions, which is highly desirable to utility plants required to lower these emissions. In addition, our affiliate companies market Colombian steam coal internationally to over 15 countries.

The Drummond International operation includes the Mina Pribbenow and El Descanso open-pit coal mines located in the Cesar Coal Basin near La Loma; Puerto Drummond, a deep-water ocean port on the Caribbean Sea near Santa Marta; and coal transportation and handling facilities. Drummond transports the coal from the mines 120 miles by railcar on the renovated portion of the Colombian National Railroad System directly to Puerto Drummond, the deep-water ocean port. This port has the capability to load all sizes of vessels from handy-size up to the largest capesize.

Heavy investment in production infrastructure, has allowed us to grow shipments of Colombian coal from one million tons in 1995 to approximately 25 million tons in 2011.