UPDATE: W Va Governor Calls For No Coal Production In State Friday
15 April 2010 - 7:58AM
Dow Jones News
West Virginia Gov. Joe Manchin III called for a halt in coal
production from underground mines on Friday so workers can review
safety procedures, while ordering the immediate inspections of
mines across the state.
The steps came in an executive order Manchin issued Wednesday in
response to an explosion at a Massey Energy Co. (MEE) mine last
week. The blast killed 29 workers, making it the nation's worst
mine disaster in four decades.
Manchin said he expects mine operators to comply with the one
day production halt, which doesn't apply to surface mines. Miners
should report to work during the 24-hour shutdown to review safety
procedures and take any steps necessary to comply with health and
safety standards.
"We are asking for a stand down of one day," said Manchin,
speaking at a press conference Wednesday.
At the same time, Manchin ordered state safety inspectors to
inspect all underground mines immediately, starting with those
cited for combustion-related violations over the last year.
Inspectors will focus on mine ventilation, among other issues.
Manchin, during the press conference, said the cause of the
blast is still unknown and expects state and federal investigations
to take months.
The loss of a day's production in West Virginia could have an
impact on the metallurgical coal market, because coal buyers are
already struggling to find supply to replace tons that will be lost
at Massey's Upper Big Branch mine. Underground and surface coal
mines in West Virginia produce about 375,000 tons of coal a day,
based on 2009 annual production of 136.7 million tons, according to
the Energy Information Administration. That includes metallurgical
coal used in steel production and thermal coal used at power
plants.
After mining accidents at the Sago and Aracoma mines in 2006,
which eventually killed a total of 14 miners, Manchin called for a
voluntary safety review that he called a "Stand Down for Safety."
But analysts said that in that case the production impact was
minimal, because miners were able to reenter mines shortly after
safety checks.
Mining companies including Consol Energy Inc. (CNX), Alpha
Natural Resources Inc. (ANR) and Arch Coal Inc. (ACI), didn't have
immediate comment on the executive order.
-By Mark Peters, Dow Jones Newswires; 212-416-2457;
mark.peters@dowjones.com
(Clare Ansberry and Kris Maher of the Wall Street Journal
contributed to this report.)
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