Looking at the numbers for 2012, the CMA said Colorado found its way back into the top ten producing states. Since the start of 2013, though, coal production has fallen about 10% year-on-year through April.
It cited data from the state’s Division of Reclamation Mining and Safety, which placed Colorado in ninth place nationwide for production – two places up from 2010.
All told, production in the state rose to 29.5 million tons last year, but as CMA president Stuart Sanderson noted, too much should not be read into the jump.
He said 2010 was a record low not seen since 1996, and 2012 production was still 25% below the record set in 2004.
Overall production value was also up last year by 6%, to $1.1 billion, and the state’s overall economic contribution from coal was $2.4 billion.
However, at the same time, troubles at some of the state’s mines took employment rates down to 2248. Sanderson said the drop was due in large part to the idling of the New Elk met operation near Trinidad, Los Animas County.
Average wages and benefits for thermal miners, meanwhile, exceeded $115,000 annually at year’s end.
“Uncertainty over government regulations, as well as market conditions, constrains the industry outlook for 2013,” Sanderson said.
“Furthermore, the production cuts that will result from the implementation of House Bill 10-1365, which mandates the closure of power plants along the Front Range using clean, high quality Colorado coal in favor of higher cost natural gas, have not yet taken full effect.
“That will displace up to 4 million tons annually in coal sales.”
Upon the release of the numbers, Arch Coal spokeswoman Kim Link told the Denver Post that the weak coal market figured into its operations.
“We're running at lower volume levels in all operating regions due to current market conditions,” she said, backing up state figures that West Elk had reported a reduction of just under 1 million tons to 2.8Mt.
