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fates“are operated by Sharondale ;

- orporation, a wholly-owned subsidiary,

-, based in Lexingt6n, Kentucky. Sharondale

. Operates the Loftis coal mine near.Belfrey

: -int eastern Kentucky. The mine was;
ate By Brinco in December 1980.

GOperations

Following acquisition of the f fine. Brinco
Saidertodk an expansion program designed
{to increase the production capacity of the
e from 160,000 tons to:350,000 tons
jually” The expansion was accomplished
vadding a new mining section and by
‘ister minor modifications to.the wash
, plant. In April 1981, mining operations *
¥ were shut down dud to the United Mine

“which affected both union ‘and non-union
fines. Following a two and.a half month

roo 4 its expanded capacity. However, as*a result
mer

“of the shutdown, coal production fer 1981 °
' fell below target at 225,643 tons. _ ,

f f_

Prices in 1981 Aerated firm for the figh

- quality Loftis coal until the fourth quarter
when market conditions showed*some
decline reflecting the national economy and
transport restrictions iy some consumer

» areas.

These conditions have continued into the
first quarter Of 1982. Howeversprices for
the balance of the year are expected to

“+ stabilize and with production at capacity,

operating results for 1982 are expected to
? show a Significant provement over 1981.

a "Acquisitions

Loftis, although small, is well located in

~ >the heart of the eastern U.S. coal industry
~* enabling the company to review other

opportunities for acquisitions as they

12

Pnacondale Coforstion ce
—e ne Coal °
ré 4

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a
General-

“Brinco's coal activities in the United

Workers of America strike in the coal fields”

’ shutdown, the mine resumed operation at

Marketing ats sf Geert

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become available. Sharondale investigated
several opportunities during 1981 and this
activity will continue during 1982.

Mine Information

Coal Reserves 1981

i.

’ Gross Acres 3,100 acres

. Net Acres 1,500 acres
Coal Thickness 45 inches
Seam Thickhess 60 inches __
Mining Coal Recovery > 65%
Wash Plant Coal Récovery 80%
Net Tons Clean Recoverable Coal 5.27 million
; 9 %
Production 1981 1980
Clean Coal Produced (tons) 225,643 160,000
Coal Quality — BTU per
pound 13,000 + 13,000 +
% Sulpher 0.9-1.0 0.9-1.0
% Ash 6.0-8.0 6.8-8.0
General 1981 1980
Number of Operating
Personnel 140 : 86
Railroad Norfolk & Western