New King Coal
By ANTHONY A. MESTAS | anthonym@chieftain.com | Posted: Thursday, December 9, 2010 12:00 am
TRINIDAD — The coal mines that once fueled the region’s economy are returning to life.
The reopening of the New Elk Mine west of town may bring 400 jobs to the area.
Ron Thompson, mine manager, said Tuesday that over the next year there will be 150 to 200 new jobs.
"As production increases we will increase the work force to between 350 and 400 people," Thompson said.
The facility currently employs about 90 workers.
Toronto-based Cline Mining Corp. purchased the mine last year.
The company estimates that when up and running, it will produce 300 million tons of coal a year, roughly three trainloads a week.
"That will occur some time after 2011 and then we estimate that we will be mining at that rate for up to 20 years," Thompson said.
Cline and New Elk Coal management are proceeding with bringing the mine back into commercial production by the end of the month.
"We are currently waiting for our plan to be approved from the Mine Safety and Health Administration. We expect to have that this month and could be mining before the new year," Thompson said.
The cost of the refurbishment will run between $80 million and $100 million, Thompson said.
The New Elk Mine was opened in 1951 by CF&I Steel Co. to provide metallurgical coking coal for its blast furnace iron and steel production plant in Pueblo. In 1981, Wyoming Fuels purchased the facility and operated it until 1989. The coal preparation plant continued operating with coal from other nearby mines until 1996.
The mine will produce metallurgical coal that will primarily be exported to Asian countries, including Japan, Korea and China.
Kim Schultz, executive director of the Trinidad and Las Animas County Chamber of Commerce, said the community is looking for any positive impact to its economy and the mine operation is coming at the perfect time.
"The multiplier associated with these (new) jobs will be tremendous. I want to say they are looking at the next 20 to 30 years of production," Schultz said.
Trinidad's jobless rate has risen to 8.1 percent, up from the 4.6 percent mark of a year ago.
Sales tax revenue is down by 0.2 percent and town leaders have dived into reserves for 2011 to the tune of about $229,000.
Schultz said peripheral business related to the reopening of New Elk is helping the local economy.
"They are retrofitting the mine and they are building new facilities with local contractors," Schultz said.
She said there also will be additional local work in constructing roads.
Schultz said Purgatoire Valley Construction is building new facilities for the project.
"They are having to widen (Colorado) 12 in spots for the trucking companies," Schultz said.
Schultz said that with Cline bringing most of the miners with them to work at New Elk, the influx of new, highly paid workers also will help the local economy.
"It would affect the real estate market and offset the loss of oil and gas jobs in the region," Schultz said.
Schultz said Robinson's Trucking of Trinidad won the contract to haul coal from the mine while Cline restores the site's rail line.(this is just until the rail road is restored!)
"We think it's great that a local company will have jobs available for people because of the coal mine," Schultz said.
Robinson's will transport coal from the mine to Jansen Yard just west of Trinidad. From there it will go by train to one of the several ports around the country, Thompson said.
Other local companies involved include Chavez and Sons and Electrical Systems Inc. and some out of Pueblo.
The actual mining process will be managed by TK Mining Services out of Delta.
Schultz said the company also may reach out to Trinidad State Junior College to help create training programs for the mine.
"We've discussed partnerships in the future with the college for training possibilities. We are excited about that," Schultz said.
"This community is very proud to return to its heritage and hopefully we will be able to keep our children here in Trinidad instead of leaving for other jobs," Schultz said.
Thompson, who has been in Trinidad since 1990, said the operation is important to the community.
"Re-establishing mining as an economic base in Las Animas County broadens the economy and makes it less susceptible to economic fluctuations," Thompson said.
"We've tried to use, to the extent possible, local supply companies and local contractors and we feel this is helping the communities in the area."