Annual Report 3 - New Mexico - Energy, Minerals and Natural ...

82
COAL: Coal production value set a new state record in 2009, topping $735.9 million. Although New Mexico
coal production value increased, coal production decreased 7.0 percent to 23.9 million short tons in 2009. New
Mexico coal production reached an all-time high in 2001; production has fluctuated within a narrow range over the
past 20 years (Figure 6).
Production (short tons)
40,000,000
30,000,000
20,000,000
10,000,000
0
1989
1990
1991
1992
New Mexico Coal Production and Value, 1989 - 2009
1993
1994
1995
1996
1997
1998
1999
2000
New Mexico’s main coal reserves are located in the San Juan Basin (San Juan, McKinley and Cibola counties) and
the Raton Basin (Colfax County). Five mines in the San Juan basin produced coal during calendar year 2009. Four
surface coal mines were active: BHP Billiton’s Navajo, Chevron Mining’s McKinley North and Peabody Natural
Resources’ Lee Ranch and El Segundo mines. BHP Billiton’s San Juan Mine, a single longwall operation, is the only
underground coal mine active in the state.
The 33,000-acre McKinley Mine ceased mining operations in December 2009. An additional 80,000 tons of
coal were under contract to be delivered in 2010. Over 179 million tons of coal was mined at the site since 1962.
McKinley operated under two mining permits: a federal permit for the North area from the Office of Surface Mining
and a state permit for the South area through MMD. The North permit area is on the Navajo Nation; the South
permit area includes Navajo allotment, federal, state and private lands. The workforce was reduced by a third in late
December 2009 as work shifted from mining to reclamation. Approximately 100 employees remain at the mine to
focus solely on reclamation activities.
2001
2002
2003
2004
2005
2006
Production (short tons) Production Value
2007
2008
ENERGY, MINERALS AND NATURAL RESOURCES DEPARTMENT
2009
$800,000,000
$600,000,000
$400,000,000
$200,000,000
$-
Figure 6
Production Value ($)