Eagle Butte Mine Explained

Eagle Butte
Pushpin Map:Wyoming
Pushpin Map Caption:Location in Wyoming
Pushpin Label:Eagle Butte Mine
Coordinates:44.3556°N -105.4989°W
Subdivision Type:State
State/Province:Wyoming
Country:United States
Products:Coal
Amount:15,062,345 short tons
Financial Year:2022
Owner:Eagle Specialty Materials LLC
Official Website:https://pemining.com/eagle-butte-1
Acquisition Year:2019

The Eagle Butte mine is a coal mine located north of Gillette, Wyoming in the United States in the coal-rich Powder River Basin. The mine is an open pit, "truck and shovel", mine producing a low-sulfur, sub-bituminous coal from the Roland and Smith seams that is used for domestic energy generation. Coal produced by the mine is shipped to its customers via railroad. The mine is owned and operated by Eagle Specialty Materials LLC after being acquired from Blackjewel LLC in 2019.

As of 2009, Eagle Butte had reserves of 471000000ST of sub-bituminous coal and a maximum permitted production capacity of per year. Typical annual production has been in 20-25 million ton range for the last several years though. The average quality of the coal shipped from Eagle Butte is 8,400 BTU/lb, 0.34% Sulfur, 4.50% Ash, and 1.90% Sodium (of the ash). Train loading operations at the mine are done with a batch weigh bin system that is coupled to a "weigh-in-motion" track scale system. Silo capacity at the mine's rail loop, which can accommodate up to 5 unit trains, is 48,000 tons.[1] In 2008, the mine produced just over of coal, making it the 9th-largest producer of coal in the United States.[2] In 2022, this had dropped to just over 15 million short tons of coal. However, this still made it the 5th-largest coal mine in the US.[3]

History

The Eagle Butte Mine shipped its first train of coal in 1978 after beginning pre-production work in 1976. Since mining operations began, the mine has shipped over of coal to its customers. Eagle Butte mine has changed hands many times through mergers and sales. Previous owners include AMAX, Cyprus AMAX, RAG and Foundation Coal.

In 2005, the Eagle Butte mine was awarded two awards from the Wyoming Department of Environmental Quality for Excellence in Surface Mining Reclamation and Innovation. Eagle Butte was selected to receive these awards because of the superior quality of shrub patches that the mine had established on its reclamation.[4]

On July 1, 2019 CEO Jeffery Hoop announced that Blackjewel LLC, the operator of Eagle Butte had filed for bankruptcy and closed the mine. According to the Casper Star-Tribune, court documents show that Blackjewel owes $500 million in liabilities, including $6 million to employees. This was after Blackjewel was denied $20 million in financing by the United Bank of West Virginia.[5]

On August 4, 2019 Contura Energy Inc. announced that they won the bid to purchase the Eagle Butte and Belle Ayr mines from Blackjewel. However, it was unclear if and when any of the mines would reopen.[6] On October 21, 2019 Eagle Specialty Materials put out an announcement that it had closed its deal to buy the Eagle Butte and Belle Ayr coal mines from Contura, after the latter was unable to come to an agreement with the federal government about unpaid royalties needed to close the previous deal.[7]

Production

[8] [9] [10]

Year Coal production
(short tons)
Employees
2022 15,062,345 267
2021 13,549,294 222
2020 12,303,698 229
2019 11,642,248 216
2018 17,055,796 306
2017 17,264,483 303
2016 19,003,005 291
2015 19,649,723 290
2014 20,690,237 286
2013 19,904,433 255
2012 22,466,733 301
2011 25,365,054 310
2010 23,225,757 298
2009 21,496,124 280
2008 20,443,413 274
2007 25,010,089 275
2006 25,355,158 270
2005 24,137,448 242
2004 22,997,687 238
2003 24,549,824 236
2002 24,888,124 236
2001 24,826,910 236
2000 18,622,992 181
1999 24,826,910 186
1998 18,074,546 184
1997 17,921,000 188
1996 15,642,744 184
1995 16,942,000 180
1994 17,161,000 201
1993 16,838,000 227
1992 13,669,000 217
1991 13,922,000 219
1990 15,402,000 246
1989 13,606,000 265
1988 12,915,000 271
1987 12,977,000 299
1986 12,000,000 299
1985 11,808,000 314
1984 13,365,000 310
1983 11,030,000 308
1982 9,100,000
1981 8,400,000
1980 8,500,000
1979 4,500,000
1978 500,000

Notes and References

  1. Web site: Mine Guide. BNSF website. BNSF. 2010-07-03. https://web.archive.org/web/20101121025048/http://bnsf.com/customers/pdf/mineguide.pdf#page=14. 2010-11-21. dead.
  2. Web site: Major U.S. Coal Mines, 2008. September 2009. Energy Information Administration of the Department of Energy. 2010-07-03.
  3. Web site: Major U.S. Coal Mines, 2022. October 3, 2023. Energy Information Administration of the Department of Energy. 2024-01-08.
  4. Web site: Foundation Coal West Eagle Butte Mine Wins Dual Honors from the State of Wyoming. June 28, 2005. All Business. 2010-07-03.
  5. Web site: Two Wyoming coal mines close, idling 700 workers. July 2, 2019. The Hill. The Hill. 2019-07-02.
  6. News: Johnson . Greg . August 4, 2019 . Contura is winning bidder for Eagle Butte, Belle Ayr mines . Gilette News Record . Gilette . January 8, 2024.
  7. News: Johnson . Greg . October 21, 2019 . Done deal: Eagle Specialty Materials is new owner of Belle Ayr, Eagle Butte mines . Gilette News Record . Gilette . January 8, 2024.
  8. Web site: Powder River Basin Operations and Process Management. May 30, 2007. Foundation Coal West. 2010-07-03. https://web.archive.org/web/20120304085147/http://library.corporate-ir.net/library/18/182/182719/items/247865/Kost.pdf#page=6. March 4, 2012. dead.
  9. Web site: Eagle Data. June 13, 2010. Wyoming Mining Association. 2010-07-03.
  10. Web site: MSHA Mine ID 4801078. 2024-01-08.