Island Creek charts a return to the black

Journal Article · Tue Oct 01 00:00:00 EDT 1985 · Coal Age; (United States)

OSTI ID:6222148

This article describes Island Creek Coal Co.'s plans to increase its declining production rates, reduce its losses and move back into the profit margin. Production has declined from 20 million tpy in the 1970's to 15 million today, and employment has dropped from more than 7,000 people to fewer than 4,000. Island Creek is putting more work into its bids for new contracts which would allow it to reopen two mines in western Kentucky and put 200 people back to work. They have bought back 3 mines and have repurchased 60 million tons of low-sulfur reserves and mines that will allow them to retain revenue and earning from the mines and perhaps expand them with some new business. But the most important move has been cutting costs. Over the past two years Island Creek has cut its cost per ton by about 5%, but more must be done. Industrial engineers and systems analysts have saved the company over $600,000 by improving the performance of a cleaning plant and reducing the time it took to move a longwall from 20 days to 10 days. Through sustained effort Island Creek is returning to a profitable production.

• OSTI ID: 6222148
• Journal Information: Coal Age; (United States), Vol. 90:10
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING
POLICY AND ECONOMY
01 COAL, LIGNITE, AND PEAT
COAL INDUSTRY
ECONOMIC ANALYSIS
MANAGEMENT
KENTUCKY
COAL MINES
COST
ECONOMICS
LABOR
LONGWALL MINING
OPTIMIZATION
PRODUCTION
PROFITS
FEDERAL REGION IV
INDUSTRY
MINES
MINING
NORTH AMERICA
UNDERGROUND FACILITIES
UNDERGROUND MINING
USA
294001* - Energy Planning & Policy- Coal
015000 - Coal
Lignite
& Peat- Economic
Industrial
& Business Aspects