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Monday, July 18, 2011

Floods cut US Q2 coal production - EIA

Monday, 18 Jul 2011

US second quarter coal production fell as floods along the Mississippi and Ohio Rivers limited rail loadings from the west. As per report production declined 2.6% from the second quarter of 2010. The Illinois basin was the only major region to show an increase, rising 3.4%.

Floods along the Mississippi and Ohio Rivers in May halted barge and train traffic and limited the amount of coal produced from Wyoming and other states west of the Mississippi. Powder River basin coal, which accounts for most of Wyoming 's production and also that of Montana cannot be stored so miners ratchet back work when transportation is blocked. Weather may also end up weighing on third-quarter production.

Union Pacific's western coal loadings have declined in recent weeks after Missouri River flooding knocked out key rail lines.

The company earlier this week said western coal loadings dropped 8.2% in the week ended July 3rd from a week earlier, largely because of fewer PRB shipments, which fell by 21 trains. Output west of the Mississippi fell 4.7% in the second quarter from a year earlier. It declined 5.6% in Wyoming the biggest PRB coal producing state and 7.5% in Montana. It also was down in the Uinta basin of Colorado and Utah.

Preliminary EIA data is based on railcar loadings and estimates of barge traffic. It can be subject to revisions when mine production data from the Mine Safety and Health Administration are released. Those changes can be especially high for the Illinois basin states because the majority of their coal is shipped along the river. Production in Appalachia was nearly unchanged, falling 0.3% from last year in the second quarter. Gains in West Virginia and eastern Kentucky were not enough to overcome declines in Virginia and Pennsylvania.

(sourced from ArgusMedia)

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