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Permits filed for new mine in Hamilton County

By Codell Rodriguez, The Southern

Thursday, October 9, 2008 9:40 PM CDT

MCLEANSBORO - White Oak Resources announced Thursday permits have been filed to build White Oak Mine No. 1 in the McLeansboro area in Hamilton County.

CEO Mike Tracy said the project would bring about 300 construction jobs and 375 mining jobs. He said they are also looking into building an additional three mines in the area.

"It's a big event for the county," Tracy said. "It creates a lot of income."

The company will acquire, lease or option about 106,000 acres and more than 1.8 billion tons of coal reserves in the county. The permits are expected to be complete with construction beginning on the shaft, slope and surface facilities during the second quarter of 2009. Production is expected to begin in 2010, with a capacity of more than 7 million tons a year.

More than $400 million will be invested for the first mine. Each mine will carry about the same amount of jobs. Though production of second mine will follow, Tracy said they will have to check the feasibility of more facilities before starting on the second and third.

McLeansboro Mayor Dick Deitz said the announcement brings a lot of hope and possibilities to the community.

"It's an exciting day here in our community," Deitz said. "We can already see our community changing."

Dietz said more than 100 residents attended the announcement and the excitement was evident. He said bringing the mines into existence will take a lot of work, and the residents are more than willing to take up the challenge.

Tracy said the mines will also use the latest coal mining technology, which will also be more environmentally friendly than technology of the past.

"It's a major move," Tracy said. "We think Southern Illinois coal will be a resource for the region."

codell.rodriguez@thesouthern.com / 351-5804