Coal Production Falls Nearly 18%

Virginia coal production is down nearly 18 percent in the past year, even though the energy resource is fetching prices three times higher. In the 52-week period that ended Aug. 16, Virginia produced about 23 million tons of coal, down from about 28 million during the previous 52 weeks, according to the U.S. Energy Information Administration. Nationwide, coal production has increased 0.3 percent since last August.

The decline in Virginia production comes despite soaring demand and prices for coal worldwide. Central Appalachian coal was selling for about $45 a ton last August.

It began a steady rise last fall that accelerated over the winter. It’s now going for $140 a ton, according to the Energy Information Administration.

Virginia coal officials were unable to explain the size of the drop in production, except to say production has been in a slow, steady decline since 1990, when the state’s miners dug up 46.5 million tons of coal.

"I can’t think of any reasons or mine closings or anything," said Bill Bledsoe, executive director of the Virginia Mining Association.

Mike Abbott, spokesman for the state Department of Mines, Minerals and Energy, said part of the production dip in Virginia could be attributable to down time at Consolidation Coal Co.’s Buchanan No. 1 mine – the state’s largest – from July 2007 through March 15.

Virginia’s coal is considered high quality, but what remains is increasingly hard to mine. Experts anticipate that, as Virginia depletes its coal reserves, production will level off to 20 million tons per year for more than a decade and eventually dip to 10 million tons annually before petering out.

Contact Rex Bowman at (540) 344-3612 or rbowman@timesdispatch.com.

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MEMO:BREAKING NEWS 08/22/08 7:50 PM on inRich.com

Originally published by BOWMAN; Times-Dispatch Staff Writer.

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