Idled since third-quarter 2016, ERC Mining Indiana's Gold Star underground thermal coal mine in Greene County, Indiana, could be poised to resume production soon.
The company expects to secure a sales contract for Gold Star's lower sulfur, low chlorine coal in time for production to resume by this summer, an ERC official, who asked not to be identified, said Tuesday.
The company has bid into a number of electric utility requests for proposals in the region and is confident of receiving a contract, the official added.
The official also said he knew nothing about rumors that Hallador Energy's Sunrise Coal subsidiary may be interested in acquiring Gold Star, formerly known as Landree.
Hallador President and CEO Brent Bilsland declined to comment on the Gold Star speculation earlier this month.
Repeated efforts to place the mine on a continued path of production have failed over the past eight or nine years. While the quality of the mine's coal is said to be among the best in the state, it has been plagued by a series of geological issues that have included roof falls.
Lily Group, the mine's original owner, filed for Chapter 11 federal bankruptcy reorganization four years ago.
Gold Star turned out 14,871 st of coal in 2016, none since the end of September, according to the US Mine Safety and Health Administration. It produced even less coal, 3,022 st, in 2015 following a high of 96,244 st in 2014.
The mine had an agreement to supply 200,000 st to Indianapolis Power & Light in 2012, and 400,000 st in both 2013 and 2014. But that deal was revised and then ended after the mine produced only about 21,000 st in 2013 before it was idled.
