DENVER—Colorado coal production was down 20 percent for the first six months of this year compared with the same period last year after the industry took a financial hit because of a soft market and a fire at a mine.
Colorado’s top nine operating mines reported production declines, and two mines that produced coal in 2012 aren’t operating this year.
“We’ve had mines with operating challenges, but the market has not been that good,” said Stuart Sanderson, president of the Colorado Mining Association.
The two largest production cuts came at Oxbow Mining LLC’s Elk Creek Mine and Arch Coal Inc.’s West Elk Mine, both in Somerset, the Denver Post reported Wednesday ().
There was a 78 percent drop in production at the Elk Creek Mine, which was hit by a fire. That mine is still dealing with problems with carbon monoxide.
Since 2007, U.S. coal consumption has dropped 24 percent as utilities switched to cleaner-burning natural gas because of federal regulations.
Utilities shut down a record 57 aging, coal-fired power plants in 2012 to cut pollution, according to federal Energy Information Administration.
In 2015, another 61 coal-fired units are set to close, the agency said.
The trend of replacing coal with natural gas and renewable energy isn’t surprising, said Jeremy Nichols, director of WildEarth Guardians climate and energy program.
“Once utilities were asked to pay the true cost of coal, it isn’t as competitive anymore,” Nichols said.
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Information from: The Denver Post,
