December 2006

LONGWALL

Road to the great American dream:UtahAmerican Energy’s underground oasis

MASSEY Energy is one of the largest coalmining company in the eastern US, withmining operations at 19 locations and annualcoal production exceeding 40 million tons.Massey managers pride themselves on usinga “hands-on”style, working with employees toachieve high levels of safety and efficiency atthe company’s operations. Part of that safetyimprovement process has also been workingclosely with suppliers.

One recent example of a successfuloperation-supplier relationship has been withQuaker Chemical, according to Massey chiefoperating officer and senior vice presidentChris Adkins.

Massey recently started using Quaker’s fireresistant hydraulic fluid Quintolubric 814-02,which Adkins has found not only improvesthe safety of Massey’s operations, but has alsopaid for itself with the amount of moneysaved.

“We expect ongoing support from oursuppliers to help us meet our goal of beingthe best coal mine operators in the world.Quaker Chemical Corporation has providedthe support and assistance to help reduce ourcosts by increasing our productivity and byreducing down time and maintenancerequirements,” Adkins said.

For Quaker also, it rates a high level orservice and support as an essentialcomponent of the supplier’s role.

“Change is never an easy process andwhen evaluating the possibility of changinglongwall fluid it requires consideration from

various levels of management. On the surfacethere appears to be great risk while in fact notchoosing to evaluate other advancedtechnology available may pose equal orgreater risk,” Quaker business director ofhydraulic fluids and lubricants Kevin Dickeysaid.

“When evaluating longwall fluid and otherindustrial lubricants more than the fluid itselfshould be evaluated — things such as serviceand support. These are just as important asproper fluid and lubricant selection.”

Some of the most important functions of ahydraulic fluid occur in the longwall systemwhere it provides pressure to the hydrauliccylinders responsible for advancing the shieldover the mining equipment, pushing the faceconveyor forward to the next cut, andcontrolling roof and floor movements. Thelongwall hydraulic fluid must providelubrication of the hydraulic cylinders;maintain a consistency that allows effectivefiltering to remove contaminant particles anddirt; and prohibit the growth of bacteria andfungi in the working fluid

“The fluid we use must exhibit low toxicityand be biodegradable to avoid negativehealth, safety and environmental impact.Product stability must be high to allownumerous cycles while retaining thepreceding performance characteristics,”Adkins said.

The Quintolubric 814-02 fluid has alsoimproved the cleanliness of the solenoidvalves used in Massey’s hydraulic system. By

using Quintolubric 814-02, Massey has beenable to significantly reduce maintenance andsolenoid failure rate. These improvementshave lead to an increase in longwall operationproduction and an increase in the mines’profitability.

“The use of superior fire resistant hydraulicfluids is a critical element in the achievementof our safety objectives in our longwalloperations. All of our longwall operationsnow experience longwall fluid systems withno bacteria and fungi as well as no scumbuild-up or deposits.We experienced bacterialevels as high as 109 and today we are at zero.This has been a tremendous benefit towardsprotecting our workers health and safetywhile simultaneously lowering filterconsumption,” Adkins said.

Safety has not been the only benefit sinceswitching fluids. “Each of our longwalloperations experienced high levels ofsolenoid consumption. We experiencedsolenoids sticking due to deposits. Sincechanging to Quaker’s Quintolubric longwallfluids, we have achieved more then 80%reduction in solenoid consumption, and oursolenoids upon inspection appear in verygood condition.

“The benefits of improved solenoid lifetranslate into improved operationalefficiencies. Our shield technicians used tospend a lot of their time changing solenoidsduring a shift. Now they can focus their timeon more productive work. Additional savingsare realized simply by not being required topurchase such large quantities of solenoids.”

“To quote one worker,‘in the past we couldnot keep enough solenoids in stock, sincechanging to Quaker the shelves are full’,” hesaid.

Quaker offers a complete line of syntheticlubricants designed specifically for themining industry, including Quintolubriclongwall fluids and MineTech syntheticlubricants.

Massey comesclean on fluid

IN BRIEF12

DECEMBER 2006 AL

Massey chief operating officer and senior vice president Chris Adkins.

Before: Solenoid after 90 days use with previous fluid.

After : Solenoid after 90 days using Quintolubric 814-02.

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AS THE coal boom continues, operations aremoving along at record pace to keep coalsupplies plentiful while carefully watchingcapital expenses. For rebuild specialistInterstate Machinery, coal’s positive upswinghas brought them significant expansion.

“We’ve expanded three times alreadyhere,”said company president Charlie Cline. Infact, the Beaver, West Virginia-based outfit

recently began offering rebuilt equipment aswell as a line of new scoops and belt drives.

In the rebuild sector, Interstate Machineryprimarily sees continuous miners, mainly dueto their high initial price tag, followed by thecompany’s other specializations of scoops,shuttle cars and belt drives.

In all cases, he said, “there’s no hiddenthings in it” when it comes back to thecustomer.“You can see what we’ve done, andyou know what’s new and what’s not. Youhave to be straight up with your customer,because this business is way too competitiveto take chances or shortcuts.”

On average, about 70% of the company’swork comes from rebuilding equipmentwhile 30% accounts for new sales, while thedivision is about 50:50 for belt drives.

However, Cline said part of the momentumbehind the decision to begin offering newequipment stemmed from rebuildequipment availability; coal’s good days havemade machinery scarce. “All the usedequipment ... are being utilized. Everyone’sgrabbed a hold of what they could.”

While a shortage of machinery to work onwould normally create a work squeeze for arebuild specialist, Cline admitted the strategyto add a line of new products also had afinancial basis related to the cyclical, yet fickle,coal market. As coal prices rise and rebuiltequipment interest spikes, the trend is thatoperators go back to new, in his opinion, andthis time is no different.

“Some things need to be new, if it’s a highproductive piece,”he said, adding that in someequipment cases, such as continuous miners,it becomes an issue of how many times a piececan be rebuilt before its optimum workabilityis compromised. Both of these affect the levelof new equipment purchases as well.

While Cline said his business is “prettyswift” on both sides and with a typical

turnaround within six months, he and thecompany are looking to the western US toexpand their products and services. UnitedCoal, Magnum Coal and Gatling Coal’s minesare just a handful of Interstate’s clients thathave purchased its new equipment since itbegan offering it one year ago.

Cline also said as technology of originalequipment manufacturer equipment

moves forward, rebuild companies will haveto keep step with the advances, somethingInterstate has and will always do.

Manufacturers “are always on their toes,always making a better wheel.

“We understand the future for coal isbright, and we definitely want to be a part ofit — so, of course, we are on our toes all thetime.”

What’s old is new again

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DECEMBER 2006 AL REBUILDING, REPAIR & OVERHAUL

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Interstate Machinery, based in West Virginia, says about 70% of its workload comes from rebuilds while 30% are from new unit sales.

“All the usedequipment ... arebeing utilized.Everyone’s grabbed ahold of what theycould.”

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