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Show Monk 2004 Energy Guide 31 Energy report predicts ongoing coal mine mergers The price of Utah coal has climbed 4 percent or 71 cents to reach $18.47 per ton. But in spite of the higher the estimated total prices, Utah coal revenues declined by $12.6 million, due primarily to a 6.4 percent decline in production, noted the latest coal production and distribution report issued by the state's energy office. Utah mines produced about 25.3 million tons of coal in 2002, down 6.4 perd cent from a high of more than 27.0 million tons in 2001. Tandem declines in annual production can be attributed to several factors, noted the state energy office's annual review and forecast report. The factors include near-recor- The outlook for mining in Castle Valley should follow recent trends. The trends in- clude: remain high due to instate forecast report, the state enpower plant commitments ergy office predicts Castle and the state's resilient air Valley coal mine operators shed capacity, added the en- will exceed a 25 million ton Continuing consolidation ergy office. In addition, demand for of coal mines and parent companies as marginal pro- Utah coal will climb in Calducers fail or are absorbed. ifornia and Nevada for the Increasing use of tech- same reasons, indicates the nology to meet the risk and state's energy office. When 2003 data are finalcomplexity of mining marreserves. ized, the energy office points ginal deLong-terin out that mine operators exgrowth mand for electricity across pect the third consecutive the United States. year of climbing coal prices. The majority of the coal Rising prices may be due from mines in operproduced part to coal supply probin in the eastern states Carbon and lems ating Emery m production level for 2003, an increase of 1 .7 percent compared to 2002. The projection is consistent with Pacificorp's expectation that regional electric power demand will grow at roughly 2 percent per year, noted the energy office. The majority of new power generation capacity anticipated for construction Castle Valley and Utah in the next decade will prob- in $! tions combined, the Wasatch Plateau coa1 field will continue to dominate the production charts in Utah, pointed out the energy coal imports. Utah mines, though highly productive, are located somewhat far st office. from major markets and transportation routes, noted the state energy office. Andalex's Ridge But Utah miners may world at working efficiently under difficult underground conditions and broad-rangin- g t con- r Export markets disappeared for Utah coal by the end of 2002. well-market- ed foreign coal are cutting into the Pacific Rim market. Aus- de- mand for electricity is rising at about 2 percent per year statewide and coal deliveries for power production in Utah are expected to increase 560,000 tons or 3.7 percent compared to 2002. The strength of the U.S. dollar accounted t, West Canyon the Book Cliffs. In addition, the $ 44 straints. low-cos- and Fuel's Dugout Canyon mines are projected to produce close to five million tons of coal in be the best in the But result, the mining industry will be forced to rely Crandall Canyon opera- conditions, depletion of reserves, conflicts or legal matters and for a major portion of the decline. port. As a . sluggish economic regulatory positions, to a total of 1,452 jobs. The closure of the Lodestar mines reduces the total coal production by several hundred thousand tons. According to available data and information, it is also possible that the new Emery Deep mine will not acquire significant production contracts during 2003, noted the state agency's re- more heavily upon a shrinking number of large coal operators in order to maintaining existing coal tonnage production levels in Carbon and Emery counties With Canyon Fuel, Deer Creek and the substantial stockpiles, low-co- tinue to decline through 2003 by approximately 73 Lunches sit on a table in the mine kitchen until underground workers can break for a meal. The latest coal review and forecast report released by the states energy tralia has become world's leading coal porter. During 2002, the financial insolvency of insurance companies preceded the shutdown of several U.S. mines, including two in Utah. Coal production also slowed regionally, but overall tonnage remained consistent in the western states The permanent closure of Geneva Steel eliminated the last Utah consumer of coking coal. counties will be devoted primarily to electric power generation. In addition to plants in Utah, the utility markets for locally produced coal will include cogeneration industrial plants in Nevada and California, predicted the state energy office's coal production and distribution forecast. Mines will continue to run efficiently, under increasingly difficult conditions, as lower cost coal reserves are depleted. Coal demand will likely office indicates Castle Valley miners may be the best in the world at working efficiently under difficult con- ditions and broad-rangin- and gradually improving economic conditions in the nation, pointed out the energy office. Prices may be limited by low cost coal from Wyoming-- ' Powder River Basin along with exports from Australia, Indonesia and foreign coun- tries. current dollars, Utah coal prices reached $29.20 per ton in 1984. In constant dollars, the coal prices peaked in 1996 at $60.39 In per ton. In the latest review and g regulatory constraints. ably be coal-fire- d, predicted the state energy office. The dominance of longwall machines is expected to keep miner pro- ductivity at a record level of about seven tons of coal per labor hour when data are finalized for 2003. Two Utah mines closed in 2003 so projections show a corresponding decline in the number of production facilities and operators, explained the energy office. addition, coal mine employment should con In PacifiCorp has indi- cated the company will need at least one more coal-fire- d power plant within the next decade in order to meet regional demands. The plant would require more than one million tons of coal per year, with a project life of 50 years. Utah's Deseret generation and transmission power plant relies entirely on Colorado coal. But the plant will switch to Utah coal if Deserado mine experiences difficulty during upcoming equipment changes. There are no other substantial users of coal and no new ones are expected in Utah. out-of-sta- te |