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Americas: Arch Coal resumes production at Utah's Dugout Canyon: company

Americas: Arch Coal resumes production at Utah's Dugout Canyon: company

Write: Panna [2011-05-20]
p>Arch Coal is resuming production at its Dugout Canyon mine for the first time since June 22, when a buildup of carbon monoxide forced its closure for more than two months, the company said late Thursday.


The St. Louis-based coal producer is recalling more than 100 employees who were temporarily relocated to other Arch mines to begin work at longwall operation. The mine outside Price, Utah, produced 3.2 million short tons in 2009, making up about 2% of Arch's output, but its bituminous coal is one of the companies higher-margin products.


The company was required to submit a new ventilation plan to the Mine Safety and Health Administration, which forced Arch to reduce risks of small coal seam fires caused by spontaneous combustion. Such fires, known as hot spots, are a common problem in Utah mines.


"We want to extend our great appreciation to the MSHA team for its diligence and hard work during the outage," Gene DiClaudio, president of Arch Western Bituminous Group, said in a statement.


Similar carbon monoxide buildups closed the mine earlier in the year for about a month.


At the time of the June closure, industry analysts predicted the production shutdowns would have a minor negative effect on the company's earnings -- probably no more than a few cents per share. Officials with knowledge of Arch's sales and transportation strategies said in August that the company was sourcing coal from other Colorado and Utah mines to fill customer orders, minimizing the supply impact.


China Chemical Weekly: http://news.chemnet.com/en/detail-1411716.html