Coal Age

AUG 2012

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1960-1969 development was key, producers joined forces to help develop coal-to-liquid fuel technologies and other techniques to return to transportation markets. Producers also worked with the electrical industry to increase coal utilization. Together, they also teamed up to fight increasing railroad shipping rates by changing transportation patterns. Barging became much more common as new mines located along rivers and installed docking facilities—often foregoing rail transport entirely. Other producers began shipping in new unit trains to take advan- tage of efficiencies of scale and conditional- ly lowered freight rates. Production patterns were changing as well. In 1960, five of the top 10 producing mines were in the Illinois Basin and six of the top 11 were surface operations. Some of the largest of these were concentrated in western Kentucky's rapidly growing coal- fields. Close to new TVA burns and with excellent river access, the region's shallow reserves were perfectly tailored for the moment. New production methods increased tons per man to approximately 13.5 as editor Given predicted that, by 1970, bituminous operators would find markets for between 625 million and 650 million tons of coal. Given would be off by only 20 million tons. Coal exports, heralded in the 1950s as a steady 40 million ton mar- ket, were flat and falling by 1961. "Japan was the star in an otherwise dull export market, with shipments drifting from 37 down to around 33 million tons." In December 1961, Coal Age reviewed the operating results of newly installed longwall technology at the Keystone mine owned by Eastern Gas & Fuel Associates in West Virginia. Manufactured by Westfalia Lunen, Germany, and marketed by Mining Progress Inc., the system allowed a 50% reduction in manpow- er, better roof control, increased pro- duction, and minimum maintenance and supply costs. At the time, it seemed longwall mining would become the technological break- through that underground producers had been hoping to make for many years. West German and British equipment was field tested in the U.S. in 1961 and 1962 and several longwall units were installed during the decade. August 2012 "The key to the situation has been the advent of self-advancing roof-support units that permit longwalling under the labor- economy conditions prevailing in American mines," wrote the editors in the January 1962 issue. "The times when 'revolution' is the appropriate description of a change in min- ing are quite few…[but]…deep mining in the U.S. is on the verge of a change that might eventually deserve the term," wrote Given in the March 1962 editorial. "The number of longwalls adapted from foreign practice is as yet small, but anyone who sees either of the two now in regular operation is most likely to be seized by an almost irre- sistible desire to go home and place an order for one or more of his own." The magazine would continue to report on Eastern's progress with longwall technologies in the October 1962 model mining number, as well as the August 1963, September 1964 and August 1969 issues. By the end of the decade, Eastern had become a leader in mining efficiency. But conventional mines were still hold- ing their own ground. In 1962, Peabody Coal's Mine No. 10 in Pawnee, Ill., one of the nation's most productive mine, set a world record in output, producing more than 5 million tons from a single opening. "The mine, which employs 840 men, working three shifts a day, five days a week, produced the 5 millionth ton on Dec. 11, the 210th day worked," reported the magazine in February 1963. The mine would produce 5.35 million tons the following year. A close second was the conventional Pittston/Clinchfield Moss No. 3 in Virginia that produced 5.15 million tons that year. But, as a sign of the times, the rest of the top five productive mines in 1963 were all Illinois basin surface operations owned by Peabody, each mining between 3.6 million and 3.1 million tons. *Coal Age, April 1960 100th Anniversary Special Issue For the October 1964 model mining number, the editors once again reviewed the operations of Consolidation Coal— that year celebrating its centennial. Having just produced its 1 billionth ton, "its quite likely that Consol will produce its next billion tons in less than 25 years— perhaps less. 'Consolidation,' in the case of Consol, truly means benefits to the energy consumer and the general public of the United States even now running to many millions of dollars annually as a result of its concentration over the years on a better product and better service at a lower price. Its contributions to the advancement of the industry's general welfare will continue to grow in scope and magnitude as Consol moves ahead in the production of its second billion tons," wrote Given. The nation's long time number one producer at the time, Consol held reserves in nine states and was mining in six, with operations in West Virginia being the most prolific. With overall tonnage expected to top more than 45 million tons in 1964—a nearly 14% increase year over year, the company was entering a period of tremendous growth, particularly following its 1962 merger with Truax-Traer. Despite this, however, in 1964, Consol was overtaken as the U.S. production leader by a surging Peabody Coal Group that mined 46.6 million tons, 19% more than in 1963 and 1.3 million tons more than Consol. Following a large $38 million build out in southern Illinois, Peabody had invested heavily in new dragline technolo- gy and was churning out massive amounts of surface mined coal in western Kentucky and Illinois. Consol and Peabody would vie for industry production leadership throughout the decade. www.coalage.com 109

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