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Issue link: https://coal.epubxp.com/i/130908
news NAPP Longwall Mines Off to a Slow Start Combined coal production at the 25 largest Northern Appalachia mines was down only 1.6% in the first quarter, compared to 9.3% nationwide, with those operations turning out nearly 24.9 million tons of coal, compared to 25.3 million tons in the same period of 2012. For the 12 months ending on March 31, production at the 25 mines was down only 1.1% compared to the same period a year ago, to 93.9 million tons, according to an SNL Energy analysis of Mine Safety and Health Administration (MSHA) data. More than half of the 25 mines produced less coal in the first quarter than a year ago. Leading the production decline was CONSOL Energy's Loveridge No. 22 mine in northern West Virginia. Production at Loveridge dropped 355,349 tons to 1.2 million tons during the first quarter and may have been hampered by an accident investigation. In February, a miner at Loveridge was critically injured and later died after being struck on the head with a slate bar while working on an underground mine car. Production at Alpha Natural Resources' Emerald No. 1 mine in western Pennsylvania was also down sharply in the period. Coal production there dropped 29% to 878,950 tons. Alpha also saw a production decrease at its most productive mine in the region, Cumberland, where output slipped by 10,077 tons to nearly 2 million tons. For the 12 months ending on March 31, production at Cumberland was 9% lower at 6.4 million tons. Both mines operate in the Pittsburgh No. 8 seam. The mines sell high-Btu, high-sulfur steam coal, primarily to eastern U.S. utilities. CONSOL's Bailey mine reported a 5% decrease in production from the first quarter of 2012 to 2.7 million tons. For the trailing 12 months, Bailey production is 8.6% lower at nearly 10 million tons. CONSOL also reported lower production from its Shoemaker and McElroy mines in Northern Appalachia. But it got stronger performance at its Enlow Fork and Robinson Run No. 95 mines. ± B R E A K I N G N E W S Kinder Morgan Drops Plans for Oregon Export Terminal Kinder Morgan will not develop a proposed coal export terminal at the Port of St. Helens in Oregon. Consequently, three of six recently proposed coal terminals slated for development in Oregon and Washington—a $550 million investment total—are now shelved. Kinder Morgan had been surveying the Columbia River area since Q1 2012. But despite rail, water and road infrastructure, the site near Clatskanie lacked sufficient room for heavy equipment, according to company spokesman Allen Fore. The prospect of more than 300 jobs— and exports of 50 million tons of coal from Montana and Wyoming— will disappear. According to the engineers at the Houston-based terminal and pipeline operator, however, "It's not about coal, it's about siting—we couldn't find a configuration on the site," Fore told Platts. "We looked at multiple options and different footprints, but couldn't find one compatible with the facility we wanted to construct." Building the $200 6 www.coalage.com Production at CONSOL's Blacksville No. 2 surged 48% to 915,490 tons, compared with a year ago when CONSOL idled the longwall and cut back continuous mining due to weak market conditions. Production, however, was down from the fourth quarter of 2012 due to a fire in mid-March that continues to keep the mine idled. The company recently said it is close to setting a restart date. During a recent conference call, CONSOL officials said production from Northern Appalachia could begin to pick up as inventories remain tight and the company is seeing new interest for coal from the region from utilities in the Southeast, which is traditionally served by Central Appalachia coal. "Right now we've got about 6.5 million tons of our Northern App coal going down into the Southeastern markets," said CONSOL Chief Commercial Officer James Grech. "And we have discussions that million facility would have employed 80 people in management and operations. Three other terminals, though, remain under consideration— two in Washington and one in Oregon. These include Gateway Pacific near Bellingham, Wash., at 52.9 million tons annually; Millennium Bulk Terminals in Longview, up to 48.5 million annual tons; and Ambre Energy's Morrow Pacific Project in Boardman, Ore., at up to 8.8 million tons. Bellingham and Longview are undergoing lengthy permit reviews. Morrow Pacific's permit review, meanwhile, is delayed. Ambre officials, though, have expressed hope their project will begin shipping in 2014, receiving coal at the Port of Morrow before shipping via covered barges to Port Westward prior to transfer onto ocean-bound ships, according to The Oregonian. Fore noted Kinder Morgan is scouting for other Northwest coal export sites, though he declined to name specifics. May 2013