INTERNATIONAL COAL NEWS

Longwalls put Utah on high

COAL production in Utah is up 20% compared to two years ago, according to state statistics, thank...

Donna Schmidt

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In the Annual Review and Forecast of Utah Coal Production and Distribution 2006, by Michael Vanden Berg, production was up for the second straight year to 26.1 million tons. What's more, for the first time in history, 2007 coal output on state lands is expected to exceed federal coal production.

"This year's increase was the result of renewed longwall mining at the Skyline mine and significant production increases at Aberdeen, West Ridge and SUFCO," according to the 44-page document published earlier this year. "In addition, Utah achieved record production in the Book Cliffs coal field, record production in Carbon County, and record production on state lands."

While more difficult conditions at some of the state's operations have resulted in a product containing a higher level of ash, Utah's producers met the challenge head on with two new facilities near Price: Canyon Fuel's Castle Valley coal preparation plant and Headwater's Wellington cleaning facility.

Employment at Utah mines was also up, and at its highest level in 10 years. Even though three operations - Pinnacle, Bear Canyon No. 3 and South Crandall Canyon - were idled last year, new hires were up by 191 to a total of 1994.

The market conditions in the region reflected the increased available output. Distribution was up to 24.8 million tons while imports into the western state's borders were just 1.9Mt, a 10-year low. Meanwhile, prices were up just over 16% over the past year, averaging $22.51, the highest price recorded in 20 years.

Sorted by coal field, the Wasatch Plateau led the way with 59.4% of the state's total production last year. "The Skyline mine restarted longwall operations in May of 2006, more than tripling their 2005 production," noted author Vanden Berg.

While a notable feat, it was tempered by the performance at the region's other operations, including a 4.5% increase at Sufco, 7.3% rise at Bear Canyon, and three decreased totals: Deer Creek (4.2%), Crandall Canyon (24.6%), and Horizon (11.3%).

The Book Cliffs coal field made up 36.5% of last year's total production, the second highest jump just behind 2004's report of 38.9%. Overall production was just slightly up, 6.9% to 9.5Mt, with the rise due in large part to UtahAmerican Energy's Tower complex.

"Tower, which operates the Aberdeen and Pinnacle operations, greatly increased its production from 1.7 million tons in 2005 to 2.1 million tons in 2006, even with the idling of the Pinnacle mine early in the year," the report noted. "The West Ridge mine also increased production in 2006 by 471,000 tons to a total of 3.1 million tons."

However, there was one speed bump for the region during the year: a slight drop at Canyon Fuel's Dugout mine that went from 4.6Mt in 2005 to 4.3Mt in 2006.

"The Book Cliffs coal field could become an even more prominent producer in the future with the proposed opening of the Lila Canyon mine," the report said of UtahAmerican's proposed new operation.

Total production for 2007, according to the report, is expected to be total 26.4Mt. A new state production record of 28 Mt is a possibility for 2008.

"This continued increase would mostly be the result of ramped-up longwall production at the Skyline mine, higher production at SUFCO and Aberdeen, as well as new longwall production at Bear Canyon," Vanden Berg noted in the yearly data compilation.

For the year about to wrap, the upward trend is a certainty. For example in 2007 mine staff will be increased by 47 individuals, raising staff numbers in Utah mines to 2041.

Prices will also continue to rise to around $23.62/t, a jump of about 4.9%, while distribution should increase to 26.2Mt. Imports, the study said, should remain steady at about 2Mt; most of it will be made up of output from Colorado being delivered to the state's Bonanza power facility.

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