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Strategies & Market Trends : Commodities - The Coming Bull Market
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To: craig crawford who wrote (756)8/30/2001 6:17:30 AM
From: craig crawford  Read Replies (1) of 1643
 
Washington (Coal Week) 29Aug01

Arch Units Seen Recovering
archive.mhenergy.com

Arch Coal’s Skyline (UT) mine could be back in full operation by the end of this week, according to a company official. The mine encountered subsurface water a little over a week ago, causing the company to suspend operations. The mine produces about 3-million tons of coal annually. According to the official, the water caused a “brief disruption” of mining with the production impact “relatively small.” The company made up some of the lost production at the nearby Dugout Canyon and Sufco mines. At the company’s West Elk, CO operation, the official noted that the company “has made good progress” in addressing the problem of higher-than-expected methane levels in developing a new longwall which is not yet in full production. The mine was closed for six months last year due to a mine fire. An update on the status of the mine could be issued in a matter of weeks. West Elk’s capacity is about 7-million tons per year. In the East, Arch will continue to produce coal from its Samples, WV mine where it encountered a sandstone deposit in May. The official said the company has since modified its mine plan to address accessing thinner coal seams at the mine, adding that output at the facility will be “in line with expectations” for the year. Annual capacity at Samples is about 7-million tons. The official noted that while production should approach normal levels, there will be an incremental increase in costs at the mine. He said, however, that the mine has been “a low-cost operation” and that the increase in costs won’t deter production.
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