Driving coke markets and technologies

Coal mines on reality TV? How does this affect public perception?

19 September 2011

Last spring, the coal industry entered a new arena- reality TV. Spike TV's COAL has given million of viewers a glimpse into the mines and has potential to broaden the public's perception of the industry. Mike Crowder, CEO of Cobalt Coal, will be the keynote speaker on Monday, October 31st and kick-off the 15th annual Met Coke World Summit. Mike shared some of his thoughts about his experience with us; for even more, be sure to attend this year's conference!

-Briefly, what is the history of Cobalt Coal?
Cobalt Coal LTD I was founded in 2008 as a metallurgical coal acquisition and development company focusing on the Appalachian region of the USA. The company is focused on the acquisition and development of known, high grade metallurgical coal reserves to produce near term cash flow.

Cobalt currently has two coal properties (the Westchester Mine and Westchester Expansion) and another project that is currently being negotiated. All current projects of Cobalt contain high grade metallurgical coal with several drill holes and outcrop samples confirming the presence, and quality of coal.

Cobalt has a head office in Calgary, Alberta and a field office in Welch, West Virginia where Cobalt's full time operating staff is in place. The Company's management team has extensive experience in founding, growing and selling both public and private energy and resource companies. Cobalt Coal LTD is uniquely positioned for success.'

The Westchester Coal Mine and the Westchester Expansion are located in McDowell County, West Virginia, a region with an extensive history of producing high grade metallurgical coal. Cobalt is mining the 'Sewell' coal seam. The Sewell is a very high quality metallurgical coal.

-How did the show "Coal" come about?
On January 14, 2010 a Hollywood Television Production Company contacted Cobalt and explained they were producing a coal mining show for SPIKE TV. After first believing this was a prank call, several more conversations and emails followed with the principle officers of the production company. The production company then followed up with legal documents to secure an Exclusivity Agreement between both companies.

As defined by the production company SPIKE TV allocated approximately $5 Million to produce ten (10) - one hour episodes "to celebrate the work that Coal Miners do." The production company further stated, "The television series will shine a light on the brave men and women and their families who endure the rigors of their tough profession." "The show will showcase personalities, teamwork, safety, the science and technology of coal mining equipment and supplies, and the breed of men that make up the coal mining labor force." "Every aspect of the job will be covered. The show will also celebrate the fact that Coal Miners help keep our country energy independent." The production company was very excited about the show and has long term goals in mind because they believe, "the virtues of Coal Mining translates well to television."

The executive management team of our company believed this was not only a great opportunity for our workers to leave a legacy for their families for decades to come but we also felt it was a great opportunity for Public Relations, Marketing and Advertising of Cobalt Coal and that the show would positively impact our public traded stock value (CCF.V). SPIKE TV is one of the largest Global Cable Networks (impacts millions of viewers in approx 120 Countries).

Cobalt felt we could also get more truths out about coal. We felt perhaps our efforts would help further the real perception about what we do for a living. The simple truth is coal is an abundant source of cost effective energy for our country and that fact will not change anytime soon. And there is no substitute for coking coal in the steel making process. We wanted to help get the word out.

Prior to filming we required the 13 videographers be trained for 80 hours and were certified as apprentice coal miners.

-How has your business changed since "Coal?"
Spike TV's "COAL" has been a big hit. The first week it aired it had 6 million viewers! The shows first season had 10 episodes. During and following the 10 episodes the show became a huge talking point in the coal industry.

Since the shows inception the company has had hundreds of resumes from people wanting to work for the company and a surge in demand from people wanting to buy our coal. Basically, Cobalt has gone from being a nobody to being one of the most talked about companies in the coal industry. The show helped our company with vendor and supplier trust as well.

Cobalt began selling coffee cups, hats, and shirts at the company online store and many people can be seen wearing the COAL or COBALT COAL t-shirts.

This has been a unique marketing opportunity for our junior company and the first time in history there has been an opportunity like this to tell the coal miners story. The company and several of our employees have gone from being an unknown to instant industry fame and recognition.

People watch Reality TV . The drama surrounding our struggling company is pretty thick and designed for television ratings. The vast majority of all people employed in coal mining and their families have been watching the show.

Are there any "lessons learned" that you can share?
During the filming, which ran from Nov. 9 to Jan. 21, federal inspectors cited Cobalt for 19 violations. There were, however, no accidents or serious injuries. We will better screen and filter the show before airing. The production company will allow the appropriate amount of time to accomplish prior screening.

On a positive note, we learned from watching our mistakes. We have also been granted use of the material to be used in development of training videos and we have teamed with CEDAR.

-What are critics saying?
Critics all over are excited about the show. Although the First Season was not nominated for an Emmy. There was a strong push to have the first Season nominated.

How do you respond to those who may say that "Coal" distorts the realities of the coal mining industry?
I've only heard the comment one time. My response was "We can only represent the realities of Cobalt Coal. There is no way to represent the entire coal mining industry as each operation has its own identity." We certainly can't represent the more established, wealthier companies.

-What are your short and long term plans for Cobalt Coal?
Short term plans (6 months) acquire additional equipment and increase production at the Westchester Mine while installing 6.5 miles of hi voltage power lines to replace the existing diesel powered generator.

Long term plans (2 - 5 years) acquire additional coal properties and place them into production.

More about Mike Crowder
Mike Crowder serves as CEO of Cobalt Coal and appears in Spike TV's international docu-series COAL. Prior to this, Mr. Crowder held the position of Vice President of Cobalt's wholly owned subsidiary, Cobalt Coal Corp Mining, Inc. He has also served as Chief Financial Officer of New Tech Mining, Inc. Mr. Crowder has been a full or part-time owner of five privately held companies and has vast experience in building successful companies. Mr. Crowder is also a real estate investor and has owned consulting companies with international clients.