Coal Energy
10:52 pm
Mon December 2, 2013

More Layoffs As Coal Mine All But Shuttered

More coal miners in the North Fork Valley are being laid off. Oxbow Mining company… owned by part-time Aspen resident and billionaire Bill Koch… laid off more than a hundred employees yesterday at its Elk Creek mine. It makes for a tough start to the holiday season for Paonia and other neighboring communities. And it’s part of a powerful domino effect after fires at the mine early this year disrupted production.

Reporter: Oxbow says it’s idling the mine, or stopping mining for coal, but keeping everything else ready for a reopening at some point. And it’s all because the company hasn’t been able to get a gigantic piece of equipment called a longwall miner… which can cost in the hundred million dollar range. Brad Goldstein is with Oxbow Corporation.

Brad Goldstein: “It’s taking a lot longer than we anticipated.”

Mike Ludlow, Executive Vice President of Oxbow’s mining operations, points to where managers hope to start coal mining at Elk Creek Mine with a new or rebuilt longwall miner. Those plans are on hold while Oxbow Mining tries to line up that equipment.
Credit Elise Thatcher

Reporter: The mine is all but closing less than two years after Oxbow was granted permission to expand the Elk Creek Mine operations. Oxbow had the right equipment before, but was forced to seal it off underground this fall. That’s because conditions were too dangerous for workers to run the equipment. More than a hundred employees were laid off then, too. Brad Goldstein says it could be anywhere from six months to a year and a half before Oxbow can line up replacement machinery and start up again. He says the company believes its worth the effort.

Brad Goldstein: “The climate for coal in Asia and Europe is strong. Japan is looking to acquire coal since they’ve gone off nuclear. And the same thing for Europe. So we believe there’s a market there, and that market will continue to grow.”

Reporter: That echoes what a coal analyst told Aspen Public Radio in October. Andrew Moore is an editor of the energy news service, Platts.

Andrew Moore: “The long view actually is bullish, both for domestic coal consumption and for overseas coal consumption.”

Reporter: Officials in communities near the mine say the layoffs can have a big effect.

Doug Atchley: “I’m Doug Atchley, a Delta County commissioner. The coal mining are wage incomes in Delta County that literally can’t be replaced. Based on the other industries that we have.”

Reporter: Mining incomes are generally around seventy thousand dollars a year, or more.  When the mine announced the earlier layoffs this fall, some workers took to a community Facebook page searching for jobs. Some have posted they found work.

Doug Atchley: “Which probably will necessitate a move, which puts pressure on the real estate market, it’s a ripple effect, so we’re very concerned about that.”

Reporter: Managers said during the previous layoffs they hoped to reverse that trend. Mike Ludlow is Executive Vice President of Oxbow’s mining operations.

Mike Ludlow: “Optimistically I’d like to think that some of the employees that had been laid off would have opportunities to come back in the near future.”

Reporter: That’s unlikely now, as Oxbow lays off most of the remaining employees at Elk Creek mine… and the company still doesn’t have the equipment it needs to mine as usual. About 20 workers are still employed at the mine...a small fraction of the previous workforce.