Go Coal: The Sky ISN'T Falling

Here is a little more proof that the media spin is negative.

Before you read this:

This is a Pittsburgh paper
The vast majority of coal produced locally is used for electricity production-off less than 3% as quoted in the article
Our local mines have been working OVER capacity to provide coal to the steam market in 2007 and 2008. Dropping production by 3% at a mine that produces 3 shifts per day, 6 days per week amounts to 0.54 shifts of reduced work per week. My guess is that most miners would be thrilled to work a few less hours after working pretty much every weekend for years.
The 84 Mine closure announcement was first made way back in 2006. The “loss” of these jobs is old news.
Speaking of old at 84… We have worked a lot at that mine (it is 15 minutes from here). Many of those jobs were retirement age people anyway. The UMWA retirement package is defined benefit-so it is not impacted short term by the economy.
There is a shortage of people in coal right now. So, throwing anyone into the market for our other mines will actually help alleviate a real problem.
The mine in Northern WV that they reference is actually in Western Virginia. Almost all of its coal is for the steel market. That mine is 4 hours from here. I know it belongs to Consol, but why is it news here?
The picture stinks
The price of coal on the spot market in June of “06 was about $36/Ton. We were mining like crazy at that price. Do you think we’ll be OK at today’s spot market price of $66/Ton?
Consol’s average price per ton already sold in 2009 is $61.56. They have sold 95% of their capacity in 2009. Their average price per ton in 2008 was $48.77. Their direct cost to mine a ton in 2008 was under $32/Ton.