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State coal production shows surprising increase

Posted January 15, 2008 10:00 pm

Tim Landis

Illinois coal production was headed toward an eight-year high in 2007. Employment was headed toward the all-time low.

Even coal boosters were scratching their heads a bit in response to preliminary federal figures showing Illinois coal production increased 4.6 percent last year, to 34.5 million tons, compared to 2006 - and despite the loss of three large mines at a cost of roughly 750 jobs.

"It's still a little surprising to me frankly," Phil Gonet, president of the Illinois Coal Association, said Wednesday. While final figures are not yet available, Gonet said the number of coal mining jobs at the end of 2007 might have dropped below the all-time low of 3,500 in 2003.

Coal mine employment at the end of 2006 was 3,900.

Approximately 500 area mine workers lost their jobs in the second half of 2007, including 200 laid off by the closing of the Crown II mine near Virden in September, and 300 at the Monterey mine near Carlinville at the end of December. Owners cited the lack of demand for coal in both cases.

Another 250 workers were laid off when the Wabash Mine in southern Illinois closed in April after years of financial problems.

A couple of new coal mines did open, including one near Marion expected to produce 6 million tons a year within two to three years, said Bill Hoback, chief of the Illinois Office of Coal Development.

Hoback, who worked more than 20 years in underground mines, also was cautious about declaring 2007 a turning point following more than a decade of mostly falling production and employment.

"We have seen signs things are moving in the right direction," said Hoback, who further noted that a couple of major Illinois coal mines resumed production last year after shutting down for safety and maintenance reasons.

"If it wasn't for running into those problems, we probably would have seen this a couple of years ago," he said, adding that coal companies are producing more coal with fewer employees.

Coal supporters also are counting on a variety of clean-coal technology projects to boost demand in the next decade, including the $2.9 billion Prairie State Energy Campus mine and power plant in southern Illinois, which is expected to use 6 million tons of coal a year when power production begins in 2012.

Art Rice, who has tracked coal production and employment for more than two decades at the Illinois Office of Mines and Minerals headquarters in Benton, said state figures have not yet shown the same increase as the federal numbers.

He agreed coal production could begin to rebound, but he said replacing lost jobs has been the hardest part for communities in southern Illinois, where the Old King Coal Festival remains an annual celebration.

"The towns do rebound, but not at the same economic level. Coal mining jobs are good-paying jobs. It's hard to find employment that provides that kind of salary and benefits," he said.

Tim Landis can be reached at (217) 788-1536.

Illinois coal production 1997-2007 (millions of tons)

1997: 41.159

1998: 39.732

1999: 40.417

2000: 33.541

2001: 33.793

2002: 33.445

2003: 31.135

2004: 32.279

2005: 33.939

2006: 32.962

2007: 34.500 (estimate)

Source: U.S. Energy Information Administration

 

Top five producing mines in Illinois in 2007

American Coal Co. Galatia Mine, Saline County: 6.9 million tons

Aclar Co. Willow Creek Mine, Saline County, 3.5 million tons

White County Coal Co., 2.9 million tons

Black Beauty Coal Co., Gateway Mine, Randolph County: 2.7 million

Monterey Coal Co., Macoupin County: 2.2 million

Source: Illinois Office of Mines and Minerals

 

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