Alaska could see another record in coal exports this year

Sunday, 12 Jun 2011

According to Alaska Railroad Corp and Usibelli Mine Inc managers, Alaska could set another record for coal exports in 2011.

Usibelli produces coal from its mine near Healy about 90 miles south of Fairbanks and is considering whether to develop a small coal deposit at Wishbone Hill, near Palmer.

Mr Chris Aadnesen Alaska Railroad President told the Fairbanks Chamber of Commerce June 7 that the state owned railroad expects to carry about 1.2 million tons of coal to Seward for shipment to export markets this year from Usibelli's Healy mine.

Usibelli is cautious however saying that while the company mine in Healy has the mechanical capability of producing to that level and it would put a strain on its people.

Mr Bill Brophy Usibelli marketing manager said "We can do it if the stars align, but we will certainty produce at the same level as 2010. He said that there are many facets to this: in equipment, people and rail capacity, although the coal resources are available.”

He said that a decision on whether to develop the Wishbone Hill deposit is likely to be made late this summer. Wishbone Hill has bituminous coal a higher quality than the sub-bituminous coal mined from Healy. If Wishbone is developed, its coal could be sold directly to buyers or blended with the coal from Healy.

Mr Brophy said the Healy mine produced a total of 2 million tons in 2010, which was a record. About half of that was exported and half shipped to local markets in Interior Alaska. He said that export markets have been growing, but so have coal purchases by the US Army for Fort Wainwright, in Fairbanks.

According to data supplied by the Alaska Railroad to the Fairbanks North Star Borough in 2009, some 801,000 tons were shipped overseas out of the port in Seward, compared to the 471,000 tons exported in 2008. (sourced Alaskajournal)