According to the owner of the Sago Mine, who said Wednesday it has idled or temporarily shut down the mines coal operation because of high production costs and weak prices.
According to Ira Gamm spokesperson for the International Coal Group Inc., "the shutdown is purely a corporate move" he continues to say, "No other factors are involved it is a business decision due to the ongoing evaluation of their corporation and that it may reopen if prices rebound". He strongly emphasizes that the mine is "idled" not closed. A small crew remains employed at the Sago Mine to maintain the mine infrastructure.
The Sago Mine was the focus of national attention for two days in January 2006. During the early morning hours of January 2, an explosion at International Coal Group's Sago Mine in Upshur County trapped 13 miners about 250 feet below the surface. Rescue efforts ensued. Local and national news medias covered the event exclusively for 48 hours; there were no other events that had more attention. It took searchers 40 hours to reach the team however, by then only one man had survived carbon monoxide gases.
The accident became the highest profile coal mining accident in recent U.S. history. It also led to major changes in federal and state mine safety laws.
The International Coal Group, Inc. has cut the number of underground workers at the mine from 90 in July 2006 to 44 at the end of 2006, according to the federal Mine Safety and Health Administration.
"The remaining Sago Mine workers have been offered employment at other International Coal Group mines", Gamm, said. The company's Imperial and Sentinel Clarion mines are located near Sago.
The Scott Depot-based coal company has idled several mines in September 2006, and has cut back in recent months on plans for developing new mines.
Sago has produced 323,000 tons of coal last year, but Gamm said the mine had run into tough geological conditions. "It wasn't roof falls. It was more in terms of amount of yield," he said. "It's a percentage of coal versus a percentage of rock that you mine."
Richmond, Va.-based Massey Energy Co. and Pittsburgh-based Consol Energy have also idled mines recently as well in response to weak coal prices and high costs for diesel fuel, explosives and labor.
Published by M.V. Asid
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1 Comments
Post a CommentNice article because I figured coal mines would start closing because of the hot weather and the boom that the coal industry was in for the last 10 or so years.