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ACI » Topics » Certain conditions or events beyond our control could negatively impact our coal mining operations, our production or our operating costs.

This excerpt taken from the ACI 10-K filed Mar 1, 2007.
Certain conditions or events beyond our control could negatively impact our coal mining operations, our production or our operating costs.
      We conduct coal mining operations in underground mines and at surface mines. Certain factors beyond our control, including those listed below, could disrupt our coal mining operations, reduce our production or increase our operating costs:
  •  unexpected variations in geological conditions, such as the thickness of the coal deposits and the amount of rock embedded in or overlying the coal deposit;
 
  •  mining and processing equipment failures and unexpected maintenance problems;
 
  •  interruptions due to transportation delays;
 
  •  unexpected delays and difficulties in acquiring, maintaining or renewing necessary permits or mining or surface rights;

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  •  unavailability of mining equipment and supplies and increases in the price of mining equipment and supplies;
 
  •  shortage of qualified labor and a significant rise in labor costs;
 
  •  fluctuations in the cost of industrial supplies, including steel-based supplies, natural gas, diesel fuel and oil;
 
  •  adverse weather and natural disasters, such as heavy rains and flooding;
 
  •  unexpected or accidental surface subsidence from underground mining;
 
  •  accidental mine water discharges, fires, explosions or similar mining accidents; and
 
  •  regulatory issues involving the plugging of and mining through oil and gas wells that penetrate the coal seams we mine.
      If any of these conditions or events occur, particularly at our Black Thunder mine, our coal mining operations may be disrupted, we could experience a delay or halt of production or our operating costs could increase significantly. In addition, if our insurance coverage is limited or excludes certain of these conditions or events, then we may not be able to recover any of the losses we may incur as a result of such conditions or events, some of which may be substantial.
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