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Kentucky coal production drops 25pc in two years

  • Market: Coal
  • 12/08/13

Washington, 12 August (Argus) — Kentucky coal production decreased by 1.3pc in the second quarter to less than 20.5mn short tons (18.6mn metric tonnes), and coal mine employment in the state is at its lowest level in 86 years.

Production in eastern Kentucky coalfields fell by 1pc and in western Kentucky by 1.5pc between the first and second quarters of this year, according to the report by the Kentucky Energy and Environment Cabinet. Coal production in the state dropped by 25pc in the past two years, by 38pc since 2000, and by 52pc since peaking in 1990.

In the second quarter, coal production at underground mines increased by 1pc and decreased at surface mines by 2pc. Surface coal production is at its lowest level since 1963, producing 6.6mn st in the second quarter, or 32pc of the state's production. Underground mines produced almost 14mn st in the quarter, about 68pc of total production.

Since July 2011 eastern Kentucky mines have shed 5,724 workers, about a 42pc drop. In western Kentucky, over the past two years 105 jobs have gone away, about a 2.3pc decline.

“As of July 2013, an estimated 12,342 persons are employed at Kentucky coal mines -- the lowest level recorded since the commonwealth began keeping mining employment statistics in 1927,” the report said. “Layoffs included 864 coal miners, [of which] 487 are underground and 377 surface [mining jobs]. Coal preparation plants and on-site office staff increased by a total of 14 jobs.”

Job losses were concentrated in eastern Kentucky coal fields, where 916 jobs disappeared, while in western Kentucky 65 jobs were added.

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