Author Topic: Westmoreland Coal to cut 250 jobs, close Texas mine  (Read 1424 times)

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Offline thackney

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Westmoreland Coal to cut 250 jobs, close Texas mine
« on: September 29, 2016, 05:45:18 pm »
Westmoreland Coal to cut 250 jobs, close Texas mine
http://westmoreland.com/location/jewett-mine-texas/
SEPTEMBER 29, 2016

The Westmoreland Coal Co. said it will close its Jewett Mine in Texas, thus eliminating 250 jobs after NRG Energy decided last month to switch to cleaner-burning coal from Wyoming.

Westmoreland informed the Texas Workforce Commission in a letter that it will cut the roughly 250 jobs in December and January. The 31-year-old mine for decades serviced NRG’s Limestone coal plant in Jewett, which is between Houston and Dallas.  NRG is switching from dirtier lignite coal at the Jewett Mine to low-sulfur coal from the Powder River Basin in Wyoming.

In the letter, the Colorado-based coal company said it “will be forced to cease production operations at the Jewett Mine by the end of the year and termination the employment of its workforce there. We regret this action, but it is unavoidable.”

The Jewett Mine is described as a 35,000-acre surface mine complex. The mine, which is one of the largest in Texas, produced about 5.3 million short tons of coal a year, according to the U.S. Department of Energy.

NRG indicated last month it needed to make the switch for economic reasons to the more efficient and cleaner burning coal. Limestone is one of NRG’s two major coal plants in Texas, including the W.A. Parish plant southwest of Houston.

Although Texas is known more for oil and gas, the Lone Star State has active coal mining in about 40 counties, according to the Railroad Commission of Texas.
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Offline thackney

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Re: Westmoreland Coal to cut 250 jobs, close Texas mine
« Reply #1 on: September 29, 2016, 05:47:22 pm »
Decades ago, working for Houston Looting and Plunder, (HL&P) I visited the Limestone Power plant fed by the nearby Lignite Mine.

Even then, we didn't refer to it as coal, but rather dirt that burns.

« Last Edit: September 29, 2016, 05:51:52 pm by thackney »
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Offline IsailedawayfromFR

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Re: Westmoreland Coal to cut 250 jobs, close Texas mine
« Reply #2 on: September 29, 2016, 09:10:05 pm »
aptly named as dirt.  It is the unconventional oil of the coal world as

1. it has a poor recovery of btu per amount in situ
2. high capital per btu
3. there are better alternatives to go after until those alternatives are exhausted
4. there is an awful lot of it

I recall when I took a UT class in Texas Resources many moons ago the professor noting that Texas was blessed with an enormous amount of lignite, mostly in thin veins across many counties.

expensive, but lots of energy provided by God await us.

I gather with the cost of trucking/railcar that the better bituminous coal of Wyoming competes effectively with the Texas lignite.

That lignite ain't going anywhere so it will remain until we need it.
No punishment, in my opinion, is too great, for the man who can build his greatness upon his country's ruin~  George Washington

Offline thackney

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Re: Westmoreland Coal to cut 250 jobs, close Texas mine
« Reply #3 on: September 30, 2016, 12:04:04 pm »
aptly named as dirt.  It is the unconventional oil of the coal world as

1. it has a poor recovery of btu per amount in situ
2. high capital per btu
3. there are better alternatives to go after until those alternatives are exhausted
4. there is an awful lot of it

I recall when I took a UT class in Texas Resources many moons ago the professor noting that Texas was blessed with an enormous amount of lignite, mostly in thin veins across many counties.

expensive, but lots of energy provided by God await us.

I gather with the cost of trucking/railcar that the better bituminous coal of Wyoming competes effectively with the Texas lignite.

That lignite ain't going anywhere so it will remain until we need it.

I  am not sure high capital cost is correct.  This particular mine is not a deep but close to the surface and next to the power plant.
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Offline thackney

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Re: Westmoreland Coal to cut 250 jobs, close Texas mine
« Reply #4 on: September 30, 2016, 12:12:42 pm »
I  am not sure high capital cost is correct.  This particular mine is not a deep but close to the surface and next to the power plant.

Okay, I'll correct myself.  @IsailedawayfromFR was correct.  This articleis a decade old but shows some of the added cost in the lignite power plant versus other coals.


Assessing the cost of new coal-fired power plants
https://online.platts.com/PPS/P=m&e=1129748331041.-6370217088259509047/?artnum=2SKQ00U5pt1017144su203_1

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Offline IsailedawayfromFR

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Re: Westmoreland Coal to cut 250 jobs, close Texas mine
« Reply #5 on: September 30, 2016, 12:40:13 pm »
I  am not sure high capital cost is correct.  This particular mine is not a deep but close to the surface and next to the power plant.

Well, it was the reason I hedged my bets and said high cost per btu, as I knew the resource has a low btu compared to other forms of coal.
No punishment, in my opinion, is too great, for the man who can build his greatness upon his country's ruin~  George Washington