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ACI » Topics » Increases in the price of steel, diesel fuel or rubber tires could negatively affect our operating costs.This excerpt taken from the ACI 10-K filed Mar 1, 2007. Increases in the price of
steel, diesel fuel or rubber tires could negatively affect our
operating costs. |
Our coal mining operations use significant amounts of steel,
diesel fuel and rubber tires. The costs of roof bolts we use in
our underground mining operations depend on the price of scrap
steel. We also use significant amounts of diesel fuel and tires
for the trucks and other heavy machinery we use, particularly at
our Black Thunder mine. A worldwide increase in mining,
construction and military activities has caused a shortage of
the large rubber tires we use in our mining operations. While we
have taken initiatives aimed at extending the useful lives of
our rubber tires, including increased driver training, improved
road maintenance and reduced driving speeds, we may be unable to
obtain a sufficient quantity of rubber tires in the future or at
prices which are favorable to us. If the prices of steel, diesel
fuel and rubber tires increase, our operating costs could be
negatively affected. In addition, if we are unable to procure
rubber tires, our coal mining operations may be disrupted or we
could experience a delay or halt of production.
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