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Wednesday, February 12, 2014
Colorado Coal Mines Took Lumps in 2013
Newly released figures show production hit 16-year low, signal overall coal decline in American West
Contact: Jeremy Nichols (303) 437-7663
DENVER – Coal mining in 2013 Colorado fell to its lowest level since at least 1997, state records issued earlier this week show, a further sign of the ongoing decline of the coal industry in the American West.
“Without a doubt, coal appears to be on the way out,” said Jeremy Nichols, WildEarth Guardians’ Climate and Energy Program Director. “It’s time for Colorado and states throughout the West to recognize the writing on the wall and start gearing up for a full transition to clean energy.”
The state’s Division of Reclamation Mining and Safety reported that Colorado mines produced 24.2 million tons of coal in 2013, compared to 28.6 million tons in 2012, a drop of more than 15%
2013’s performance was the lowest in 16 years, according to a 2010 report prepared by the Colorado Department of Natural Resources. Coal mined in the state last dropped below 25 million tons a year in 1997.
The news comes on the heels of reports that coal production north of Colorado in the Powder River Basin of Wyoming and Montana, the largest coal producing region in the nation, dropped to 416 million tons in 2013 from a high of nearly 500 million tons just in 2008. The last time coal production in the Powder River Basin was as low or lower than 416 million tons was in 2003, more than a decade ago.
Decreased production in Colorado was widespread. Six of the nine Colorado mines producing in 2013 showed reductions; only three – the Deserado Mine in Rio Blanco County, Moffat County’s Colowyo Mine, and the small King II Mine in La Plata County – showed slight gains.
The largest decline in coal mined came from two neighboring mines in the North Fork Gunnison Valley near Paonia - Elk Creek and West Elk. Production at Oxbow’s Elk Creek Mine, owned by Palm Beach billionaire Bill Koch, dropped from 2.96 million tons in 2012 to less than half a million tons in 2013 as the mine struggled with equipment loss due to a smoldering mine fire. In November, Elk Creek announced it would idle the mine while it searched for a replacement longwall mining machine, which can cost tens of millions of dollars.
The West Elk Mine, just across Highway 133 from Elk Creek, saw production fall by 800,000 tons, down from 6.95 to 6.14 million tons. West Elk is run by a subsidiary of Arch Coal, the nation’s second largest coal mining company. Arch Coal recently announced it would run the West Elk Mine at an annual production rate of just 4 million tons until the export market for coal improved. Half of the mine’s 2013 output was sold in the Europe, Latin America and Asia.
The 4.4-million-ton drop statewide from 2012 is due in part to a soft market for coal used to generate electricity as it struggles to compete with cheaper natural gas.
“Arch Coal appears to be cutting production here in Colorado to appease its overseas customers,” said Nichols. “That is not a recipe for economic sustainability and exporting coal burning internationally only amplifies the disastrous impacts of coal on our climate.”
Total number of miners employed statewide dropped from 2,219 in December 2012 to 1,857 in December 2013, a 16%, reduction.
Coal mined from Colorado is used in-state, across the country, and overseas, mostly to produce electricity. Emissions from Colorado coal cause tens of millions of tons of climate pollution every year.
In addition, some Colorado mines are found in combination with significant amounts of natural gas – methane – which must be removed to safely mine coal. In 2012, methane emissions from just three mines in the North Fork Gunnison Valley added to the climate the equivalent of 2.1 million tons of carbon dioxide emissions – about the same as a medium-sized power plant.
2013 figures for Colorado are consistent with reports of overall declines in coal in the U.S. As reported by the Denver Post in the fall of 2013, the “new normal” of coal declines are being spurred largely by increased environmental costs and weakened coal markets.
Colorado coal mine production data can be found here.
The 2010 report displaying coal mined in Colorado between statehood and 2010 is here (see page 428).
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