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Among the reasons for reduction, a release from Alpha said, was lower than expected production from Massey legacy mines and reduced demand for metallurgical coal — the high-cost coal used to make steel — in Asian markets. Alpha’s western operations, specifically in the Wyoming Powder River Basin, remained unchanged. Competition from such markets as the Wyoming Powder River Basin, where coal is less costly to mine, is one of the biggest threats to Central Appalachian coal.
There are several factors that play into the declining production of Central Appalachian coal. One, as pointed out by a recent Associated Press report, is that “easy coal” has already been mined. West Virginia’s lucrative, thick, easy-to-access coal seams are mostly tapped. “What’s happening is that the easier, thicker, cleaner, higher-recovery seams were mined over the years, and what we’re dealing with now is coal that has to be prepared to a greater extent than it used to,” said Bill Raney, president of the West Virginia Coal Association. “The recovery percentages are down.”
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Many West Virginians in the industry are looking square at the federal government when it comes to assigning blame for the decreased production. “The permitting situation with the federal government is not helping at all. We maintain confidence and hope that we are going to maintain and sustain production here, not only for the industry and all the people who work in it, but state government and all the local governments that depend on the revenues directly and also everyone working in supporting roles to the industry,” Raney said.
Recently, the Environmental Protection Agency revoked a water permit for Arch Coal’s Spruce No. 1 mine. The Logan County surface mine would have been the largest in the state. Hylton said such examples are indicative of a regulation climate sure to suppress the industry. He said the state and U.S. Army Corps of Engineers are doing their part in providing a speedy application process, but the EPA has approved only a handful of permits for mines larger than 20 acres.
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http://www.register-herald.com/todaysfrontpage/x555343174/Coal-industry-puts-blame-on-regulations