Some US coal mining companies have continued to struggle with labor and productivity issues going into 2024.
A number of coal producers last week expressed concerns about labor shortages and work quality during the American Coal Council's Miami Coal Forum conference. Experience levels and retention are also issues, said Jesse Parrish, chief executive officer of thermal and metallurgical coal producer Blackhawk Mining.
"We've trained about 500 brand new coal miners in the last two years," Parrish said, "but the age of the workforce is a real issue. We have a very inexperienced workforce, relative to many prior years."
Because of the current strain on domestic utility buyer-interest for thermal coal, conference attendees' concerns were primarily directed toward metallurgical coal output.
Production costs at a number of companies rose last year while output fell. Preliminary data from the US Labor Department shows the US had 600 more coal mining jobs in December 2023 than in December 2022. In addition, coal miners' hours worked and average weekly earnings increased.
Despite the labor gains, US coal production fell last year to around 571mn short tons (518mn metric tonnes) from around 594mn st in 2022, according to the US Mine Safety and Health Administration. Declines have continued in most coal producing regions so far this year. The US Energy Information Administration estimates mines produced 68.2mn st from 1 January-17 February, down by more than 13pc from a year earlier. Declines for 2024 to date include in the Appalachias, which house most of US coking coal output in addition to some of the country's thermal coal production.
High-volatile US metallurgical coal output is expected to expand this year with the addition of a number of new mines. But some producers are hesitant to start new mines or expand existing properties out of concern of being able to hire enough workers, Parrish said.
Conference participants also discussed various techniques coal mining companies can use to attract and maintain potential workers.
Erica Fisher, Consol Energy's vice president of human resources and communications, described the company's marketing campaign, Not So Fast, launched at the end of 2023, which aims to "educate the general public, US policy makers and corporate leaders about the role of coal," as well as its alternative uses, during the energy transition.
Some coal producers have also started to exclusively recruit students at schools and universities that are close to their facilities, stating that the potential workers are more likely to be willing to stay in the area long term. Other conference participants suggested mentorships and career development programs as ways to retain miners.
