Coal Report 05-15-13 5m 58sec

graphic from "The Continuing Decline in Demand for Central Appalachian Coal : Market and Regulatory Influences" from Downstream Strategies; view it here: http://downstreamstrategies.com/documents/reports_publication/the-continuing-decline-in-demand-for-capp-coal.pdf

According to the Charleston Gazette, a comprehensive new report says that central Appalachian coal production will continue to decline for the foreseeable future.  The report (which you can read here), released by the West Virgnia consulting group Downstream Strategies, says that by the year 2040, our region’s coal production will have declined by 53% from 2011 levels.  And the vast bulk of this huge decline is expected to hit much sooner—by the year 2020.  Interestingly, though, the report says that coal employment will not necessarily decline at the same rate as production, and that coal jobs over this period may actually increase due to a decline in labor productivity—meaning the coal here is harder to reach and will take more people to mine.  So while overall employment figures may not lag, especially at the huge rate that production will, the report suggests that coal employment will start to become concentrated in fewer and fewer central Appalachian counties.  So the report Continue reading Coal Report for May 15, 2013

Coal Report 05-08-13 5m 59sec

the interior of the Kentucky Darby Mine in Harlan County, Ky., the site of a fatal explosion in 2006. the mine's operators never paid safety fines issued after the accident, and now owe $1.6 million in unpaid fines from violations at a different Harlan County mine // photo from MSHA

According to the Louisville Courier-Journal, an east Kentucky coal company has now “essentially disappeared” after being fined over $800,000 last year.  K&D Mining was fined that amount for 43 different citations at the No. 17 mine in Harlan County, Ky, and these citations were issued for what inspectors called “reckless disgregard” for safety at the mine, including excessive coal dust buildup, ventilation problems, damaged conveyor belts, improper roof controls, and dangerous wiring. But despite these citations and the fact that K&D hadn’t paid any of its fines, the mine was allowed to keep operating until the company abruptly dissolved last year.  In total, the now-defunct company owes over $1.6 million in unpaid safety fines, which MSHA has vowed to somehow collect.  But this gets tricky when coal companies just disappear like K&D did. And skipping out on safety fines is nothing new for these operators.  The Courier reports that two of the men that ran K&D—Ralph Napier and John D. North–also ran the Kentucky Darby coal mine in Harlan County where five miners were killed in 2006.  After that tragedy, the company was found guilty of improperly sealing a section of the mine and was fined nearly $700,000, but as of last year Napier and North had still not paid that fine either.  In total, coal companies across the country owe $73.6 million in Continue reading Coal Report for May 8, 2013