Experts expect production to level off in coming year

Wyo coal miners dig record in '08

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A record volume of coal was mined in Wyoming in 2008 - in excess of 462.4 million tons, up more than 3 percent from 2007, according to a Casper Star-Tribune estimate.

That volume represents nearly 40 percent of the nation's coal supply in 2008.

Overall U.S. coal production was up by about 2 percent on a slight increase in electrical demand and an increase in U.S. coal exports early in the year, according to the U.S. Energy Information Administration.

Coal production in Wyoming could level off in 2009. Peabody Energy, Wyoming's biggest coal producer, announced Wednesday it plans to trim its Powder River Basin coal production by 10 million tons this year because of the recession and weakening global demand.

After more than 10 consecutive record years, however, a projected stabilization of statewide coal production in 2009 doesn't alarm industry leaders here. Energy officials still expect that coal will continue to increase its share of the U.S. electrical generation market over the next two decades.

"I think for Wyoming coal, we're going to continue very strong for a number of years because we're probably the best provider of affordable, reliable coal for energy. But certainly this recession is going to have an impact on everyone," said Marion Loomis, executive director of the Wyoming Mining Association.

Total U.S. coal production is expected to fall 2.6 percent in 2009, based on a decline in exports and a decline in industrial consumption, such as coking coal for the production of steel.

Contact energy reporter Dustin Bleizeffer at (307) 577-6069 or dustin.bleizeffer@trib.com.

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