Tuesday, November 28, 2006

TransAlta closes one Centralia coal mine, plans to open another

"'The maturity of the Centralia mine, its rapidly deteriorating mining conditions and escalating costs from excessive overburden have combined to make the mine uneconomic,' Snyder said. 'In order to produce competitively priced electricity from our Centralia coal-fired plant, we have to meet the fuel requirements for our plant from a more predictable and economic source.'

TransAlta will seek approval for coal mining nearby at a site known as West Field, but that process is expected to take from three to five years, Jackson said. Meanwhile, the company has signed long-term contracts with Rio Tinto Energy America and Peabody Energy for coal with less sulfur and mercury from the Powder River Basin in Wyoming and with BNSF Railway Inc. to handle shipments, according to the statement."