NACCO - Subsidiaries - The North American Coal Corporation

North American Coal

Program Overview

Programs to Leverage Low-Cost Mining Expertise

Main Program Areas	Program Objective	Primary Financial Impact	Type of Program	Timing of Benefits
Employee Safety	Ensure employee safety, improve productivity and lower overall costs	SG&A and operating margin	Profitability	Currently realized, ongoing
Contract Structure	Minimize exposure to the market price of coal and properly capture cost changes	Operating margins	Profitability	Ongoing
Lignite Mining Operations	Return to full operating efficiency and normal mining volumes at Mississippi Lignite Mining Company and Red River Mining Company	Operating margins	Profitability	2009-2010
Limerock Dragline Mining Operations	Maintain current limerock dragline mining operations and profitability; Grow limerock operations	Revenue and operating margins	Profitability & Growth	Ongoing

Programs for Mining and Reclamation Innovation

Main Program Areas	Program Objective	Primary Financial Impact	Type of Program	Timing of Benefits
Mining and Management Innovation	Increase efficiency and coal recovery, reduce costs, enhance safety and lessen environmental impact of mining	SG&A and operating margin	Profitability	Ongoing
Environmental Commitment	Restore mined land to original or improved condition	Operating margins	Profitability	Currently realized, ongoing

Programs for New Business Opportunities

Main Program Areas	Program Objective	Primary Financial Impact	Type of Program	Timing of Benefits
Leveraging NAC Lignite Coal Reserves	Utilizes geological data on lignite reserves to strategize for current operations and growth opportunities	Revenue	Growth	Long-term
Direct Coal-fired Power Generation	Develop unutilized NAC-owned lignite coal reserves for power companies and/or gas users and provide mining services to others	Revenue enhancement	Growth	Long-term
Coal Gasification	Explore and develop full-scale coal gasification plants	Revenue enhancement	Growth	Long-term
Coal-based Energy Production	Explore new clean coal energy technologies that could also produce a variety of marketable byproducts	Revenue enhancement	Growth	Long-term
Utilizing Lignite Coal Beneficiation Technologies	Explore technologies to enhance value of lignite coal by drying it	Revenue	Growth	Long-term
Contract Mining of Lignite Coal	Explore opportuntities to provide mining services for reserves owned by third parties	Revenue enhancement	Growth	Short- and long-term
Contract Mining of Aggregates	Continue to build a profitable business in limerock and other industrial minerals businesses	Revenue enhancement	Growth	Short- and long-term

Certain statements on this page that are not historical facts are forward-looking statements. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the posting of this data to the website. Click here to see the Company's full Forward-Looking Statement Disclaimer/Risks and Uncertainties Statement.