US coal producer Wolverine Fuels has reopened Utah's Fossil Rock mine, which had sat idle for 23 years, after the state's coal output fell to its lowest level since 1992.
Wolverine subsidiary Fossil Rock Resources, which owns the mine, "has produced minimal quantities of coal as a result of its rehabilitation efforts" at Fossil Rock, Wolverine vice-president of commercial operations Patrick Barrett said.
The underground mine is located in Emery County, Utah, and last produced coal in 2001. Wolverine, formerly known as Bowie Resource Partners before rebranding in 2018, acquired the mine from PacifiCorp's Energy West Mining, nine years ago.
Fossil Rock produced 8,611 short tons (7,811 metric tonnes) of bituminous coal in the third quarter, according to MSHA. The producer had around 76 workers at the mine last quarter, up from an average of 34 in the second quarter. Wolverine will mine coal at the Fossil Rock mine in small quantities this year. Then the plan is to have a full longwall panel developed and ready to put in place in the next two years.
US Mine Safety and Health Administration (MSHA) officially changed the status of the mine to "active" on 4 September.
Back in February, US utility PacifiCorp amended its coal supply agreements with Wolverine for its Hunter and Huntington coal-fired power plants to accommodate anticipated output from Fossil Rock. The coal supply agreement contemplated coal from Fossil Rock being shipped to the Hunter plant, although coal could also be directed to the Huntington plant as needed.
PacifiCorp did not immediately respond to a request for comment.
Wolverine's initiative to reopen Fossil Rock comes in the wake of a September 2022 fire at American Consolidated Natural Resources' Lila Canyon mine, which is also located in Emery County. That mine was closed in January 2024. Fossil Rock hired some of Lila Canyon's former workers and purchased some of its equipment.
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Peabody Flags Asia as Top Destination for Prime Met Coal From Australia
Peabody has flagged Asia as the top target destination for its new premium hard coking coal for steelmaking, produced from its Centurion project in the Bowen Basin in Queensland, Australia, the company said in a conference call in the early hours of Oct. 15, Singapore time.
Coal shipments from Queensland have their own advantage relative to those from the US East Coast or Canada's West Coast thanks to their geographical proximity to India, which is the center of demand growth, Peabody Chief Marketing Officer Malcolm Roberts said.
Apart from India, other Asian destinations on the company's radar include Japan and South Korea, Roberts said.
Two continuous miner units have been commissioned in the first half of the year, and the mine has produced its first development coal. The commissioning of the third continuous miner unit is expected in the coming weeks, with the first coal shipment anticipated by the end of the quarter, the miner said, adding that it is "on time and on budget" for full-scale longwall production in March 2026.
Peabody has forecast an average saleable volume of 4.7 million short tons per year for the Centurion coal, with an expected cost of $105/st over the mine's life of more than 25 years.
Saleable output of Centurion is expected to reach 100,000 st in 2024, 500,000 st in 2025 and an average volume of 4.7 million st in 2028, the company said.
With volatile matters on an air-dry basis at 23%-24%, typically at 23.5%, the Centurion coal is classified by Peabody as premium low volatile hard coking coal. Other key specifications include 68% CSR, 8.5% ash on an air-dry basis and 0.5% sulfur on an air-dry basis.
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Global Coking Coal Exports to Grow by 6% by 2026
By 2026, total coking coal exports from all major global suppliers are likely to reach 369 million tonnes, up 6% from the 348 million tonnes shipped in 2023. This is stated in the latest report of the Department of Industry, Science and Resources of Australia, according to Mysteel.
The expected growth will be mainly driven by an increase in exports from Australia. Supplies from this country are expected to grow by 18.5% compared to the level of 2023 and reach 179 million tons in 2026. If these forecasts are realized, the country will account for 48.5% of all global shipments of this raw material.
According to the report, new supplies of Australian coking coal are likely to outpace mine closures and suspensions until 2026.
The largest buyers of coking coal from Australia are currently India and Japan, with shipments to countries such as Germany, Vietnam, the Netherlands and Turkey.
In particular, India is expected to continue to drive global demand for this raw material as it expands its blast furnace capacity. The country aims to achieve the goal of producing 300 million tons of steel per year by 2030. Imports of metallurgical coal to the country may increase by 19.2% by 2026 compared to 2023, to 87 million tons.
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Ukrainian Steel Made from Appalachian Coal
Too often lost in debate about the nation’s energy future is the supreme importance of energy security and the vital role of American energy production to both America and our allies.
In the months following Russia’s invasion of Ukraine and Europe’s dash to make a break from Russian energy, it was American coal and natural gas that came to the rescue. While the most acute moments of the energy crisis are now over for many of our European allies, the crisis is as alarming as ever for the Ukrainians.
Not only have Russian strikes on Ukraine’s energy infrastructure forced electricity rationing and threatened energy shortages for this coming winter, but some of the fiercest fighting is now taking place just miles from Ukraine’s last metallurgical coal mine, critically important to Ukrainian steel production.
Russia has already seized much of the Ukrainian industrial heartland in the Donetsk region in the Eastern part of the country, and recently took the strategic city of Vulhedar, the name meaning “gift of coal” in Ukrainian because of its importance as a center of mining. The front line is now less than six miles from the Pokrovsk metallurgical coal mine. Should the mine fall, there’s concern Ukraine’s steel production – absolutely critical to both the nation’s economy and its war effort – could be cut in half.
Ukraine’s steel output already fell to 6.2 million tons last year, down from more than 21 million tons before Russia’s invasion. Steel accounted for about a fifth of Ukraine’s exports before the Russian invasion, and domestically produced steel, tailor-made for the war effort, would be prohibitively difficult and expensive to import.
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PLEASE HELP!
Below is a message from Regina Fairchild, Chairman, Friends of Coal Ladies Auxiliary:
Dear Fellow American:
Tragedy has hit America devastating the lives of thousands of men, women and children. Many have lost their home, their family members, their pets, their entire lifestyle. There is a desperate need for help. The simplest of things are needed....soap, shampoo, water, cleaning supplies, toothpaste, toothbrushes, combs, feminine products, deodorant, diapers, baby wipes, etc. If you can help, the Friends of Coal Ladies Auxiliary will be accepting supplies to be taken to these unfortunate people. The need will be long term. Monetary donations earmarked for flood supplies are also being accepted.
Please Give! Donations of supplies can be dropped at 144 Whitestick Street in Mabscott, WV or monetary contributions can be mailed to "Friends of coal Ladies Auxiliary" (FOCLA), PO Box 1109, Beckley, WV 25801-1109.
Americans take care of each other - let me know!
Sincerely,
Regina Fairchild, Chairman
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