Arch Coal Inc had closed the Skyline coal mine in Helper, Utah and laid off 200 workers two years ago but a mini coal boom is changing all that Arch is investing about $40 million to reopen the mine and local miners are lining up for work.
"We're in about as good a condition as we've been in some time," said Delynn Fielding, director of economic development for Carbon County, where the mine is located. Fielding's words could apply to the coal industry overall. Companies such as Arch have seen surging profits and record-high stock prices. Expansion plans are in the works, from new coal mines to coal-fired power plants. In Washington, a new energy bill has lessened the fear of regulatory hurdles for future coal burning.
Coal is in the limelight this fall since increased demand and tight supply have pushed up prices, said Mr Mark Reichman, an analyst with A.G. Edwards & Sons Inc. in St. Louis. Prices rose thanks to factors ranging from a train wreck last spring to economic growth in China, he said. The price of a futures contract for a ton of coal in the Western United States rose from about $9 in June to $19.50 in October, and that's no blip, Mr Reichman said.
The benefit is clear for the nation's two biggest coal companies. The largest, Peabody Energy Corp., reported a 141% increase in profits during the third quarter. Arch reported a 75% increase.
