Blaschak Coal Layoff... Slower Than Expected Coal Sales

Apparently we are being to efficient with our coal burning appliances. We are not buying enough coal it seems. See below...

Pastor Larry

Blaschak Coal workers face temporary layoffs
BY JOHN E. USALIS (times-shamrock WRITER [email protected])
Published: November 20, 2012

MAHANOY CITY - Blaschak Coal Corporation has temporarily laid off workers at its three mining operations in order to reduce its inventory of coal, with workers to return in early December.

Blaschak President/CEO Greg Driscoll said employees will return to work on Dec. 3.

"What we have done is suspend our mining operations for three weeks, with everyone back at work on Dec. 3," said Driscoll. "This went into effect on Nov. 12.

The three mining operations affected are at Centralia, Primrose (north of Mahanoy City) and Lattimer near Hazleton. Driscoll did not have the number of employees laid off during the phone interview.

Driscoll said the layoffs were because of slower coal sales than expected and an increase in the amount of coal mined and in inventory.

"Coal sales are very slow right now throughout the industry. We had a very, very strong mining year so far year-to-date," said Driscoll. "We have a lot of inventory on the ground, and we have to move the inventory we have. We don't don't have any place else to put coal on the ground right now."

He added, "We're moving the coal as fast and aggressively as we can, and we are absolutely certain of the guys coming back on Dec. 3. We're still selling coal."

Well I know Centralia had a significant price increase over last year, that may be contributing to their problem, maybe not.

I think industry production was ramped up on the expectation of export sales that haven't materialized or have been scaled back. This should generally be good for domestic users, since it puts downward pressure on prices.

Mike

I live in the area and noted that the rail car activity seems to have slowed drastically. That observation coupled with the news that China isn't buying coal like they were because of stockpiled inventories falls right in line with this news story. No more room on the Chinese docks to pile the coal from the boats coming over. Now if they will drop the prices for domestic use we will have a good winter.

Pastor Larry

Those that don't yet have the coal they need should order it now.

Not to flog a dead horse, but November 6th was another day in infamy. Just saying, don't freak the hell out!!!!!!!!!!!!!!!!! Believe what you want, and I'm still glad to be able to burn coal at whatever price!

I wasn't implying that coal wouldn't be available later, just that if someone has the means and needs more coal, it would be better for everyone if they ordered it now. From a production standpoint, nothing is more frustrating than a period of no/low demand and then a surge in orders.

My guess is that two things are going on, number one with Lehigh Antracite up and running full steam they are taking a lot of business from most of the other mines around. secondly, coal like anything is an issue of supply and demand, if too much coal is produced they would be forced to lower their price

What WN said--Don't get me wrong, I love reading gloom & doom stuff--kinda get a kick out of it. I'd bet there's a bunch of hunters working those mines & aren't too upset-plus Thanksgiving--I'm sure miners are realists & understand that stuff like this happens & will continue to happen--just the nature of the beast. Real similar in the logging world, which I spent way to many yrs doing---KEY WORDS---LAID OFF

whistlenut wrote:Not to flog a dead horse, but November 6th was another day in infamy. Just saying, don't freak the hell out!!!!!!!!!!!!!!!!! Believe what you want, and I'm still glad to be able to burn coal at whatever price!

A year ago they couldn't load the coal cars fast enough to get them to the Philly docks to get them on ships. Now the yard outside the Gilberton coal yard and the Blaschak area are stuffed with empty cars sitting on the sidings. Was the slowdown due to dropped demand from foreign and just how much did American factory slowdowns contribute.

We will never really know.

Pastor Larry

whistlenut wrote:Not to flog a dead horse, but November 6th was another day in infamy.

That was the first thing that came to my mind too but this is just a short shutdown.

I know for a fact that Lehigh antracite took ALOT of bulk orders from MANY of the mines around, they are loading railcars like there is no tomorrow, They also took alot of state contracts from other companies.

I know in the steel mills we always slowed down a good bit towards the winters, demand was normally down & younger guys got laid off. If the mines have been producing more than normal they would have a lot on the ground. I'm probably partially to blame it's been mild so far this year so I haven't even fired the coal furnace up yet, normally don't until the real cold sets in, didn't even shut of the water to the garage yet & last year was mild so I may even have enough to last once I do start but I'll at least get one ton before long, I'm sure that will help.

samhill wrote:I know in the steel mills we always slowed down a good bit towards the winters, demand was normally down & younger guys got laid off. If the mines have been producing more than normal they would have a lot on the ground. I'm probably partially to blame it's been mild so far this year so I haven't even fired the coal furnace up yet, normally don't until the real cold sets in, didn't even shut of the water to the garage yet & last year was mild so I may even have enough to last once I do start but I'll at least get one ton before long, I'm sure that will help.

I knew we could blame you for something Sam. Could we also blame Obama? LOL

Heck nobody has ever hesitated blaming him before we both did it.