Powder River Basin mines down 25% so far this year

GILLETTE — Coal production in the Powder River Basin has fallen about 25% through the first half of the year, as demand for the fossil fuel has remained low.

The 12 Wyoming mines in the Powder River Basin combined to produce about 38.6 million tons of coal from April through June, according to data from the Mine Safety and Health Administration.

That marks a decline of about 7.5 million tons from the total mined in the first three months of the year. The same mines shipped about 46 million tons of coal in January through March, which amounted to about a 20% decrease from the opening months of 2023, according to MSHA data.

Powder River Basin mines sold about 230 million tons of coal last year, averaging about 57.5 million tons per quarter, and shy of 55 million tons last April through June. That puts this year’s second quarter numbers about 30% below production compared with the same months last year.

When compared to the nearly 113 million tons of coal shipped in the first half of last year, this year’s 84.6 million tons shows a fall of about 25%, according to MSHA data.

Coal executives with Arch Resources and Peabody Energy expect production to rise in the latter half of the year, based on their company projections and comments in recent earnings calls.

Still, Campbell County’s mines find themselves in a hole.

If the trend were to hold, the 84.6 million tons shipped through the first half of the year puts the Powder River Basin on pace to ship about 169 million tons this year, which would amount to greater than a 25% slide from last year.

Low natural gas prices and utility companies with large stockpiles of coal ready to burn have been blamed in part for the slow start to the year.

Six of the 12 mines in Campbell County held steady average employee counts through the first half of the year, while the other half carried fewer employees from April through June.

Buckskin saw the most noticeable drop, going from 272 employees on average to start the year to 162 employees to end the first half, according to MSHA data.

Caballo and Eagle Butte each showed a meaningful drop in headcount. North Antelope Rochelle Mine still maintains the largest workforce, but averaged 39 fewer employees, according to MSHA data.

Peabody’s three Powder River Basin mines — Caballo, Rawhide and NARM — combined to sell about 15.8 million tons in the quarter, which fell within the company’s adjusted expectations.

It now expects to ship about 21.5 million tons from July through September, and to end the year having sold 75-82 million tons, which is about 5 million fewer than its previous projection.

This story was published on August 6, 2024.