Overcoming Challenges
Mining and Minerals
By Joanna Miller   
Thursday, 31 May 2007
smc Despite a struggle to find good talent in a remote location, Usibelli Coal Mine remains productive, even during the tight times.
Despite a struggle to find good talent in a remote location, Usibelli Coal Mine remains productive, even during the tight times.
As the only operating coal mine in Alaska, Usibelli Coal Mine produces 1.5 million tons per year in its strip mine, and more than 900,000 tons are sold within the state of Alaska. According to General Manager Keith Walters, Alaska is home to approximately 4 trillion tons of coal, which accounts for 50 percent of the coal available in the United States. “We’re not even making a dent in it,” he says. “We mine three different seams to a total depth of 300 feet.”

The surface mine was established in 1943 by Emil Usibelli and, today, the third generation of the family owns and operates the mine. The company mines sub-bituminous, type-C coal with 0.17 percent sulfur. “It is the lowest-sulfur coal in the U.S. and some of the lowest in the world,” he notes. “We call it ‘Alaska Clean Coal.’”

Usibelli now has six power plant customers in Alaska and supplies coal to power plants in Korea and Chile. “We are able to supply coal to Pacific Rim customers because of logistics, but it is very expensive, freight-wise,” the company says. “A look at a globe gives an idea of why we are competitive with other suppliers.”

“We always look at expanding,” Walters says. “It’s all about market. Alaska is a small infrastructure. We continue to look for markets overseas. We are very proactive about keeping our development of mine areas up to date.”

The company’s biggest challenge is a lack of skilled workers. “We have a really hard time finding mechanics, machinists and electricians,” he says. “There is such a boom worldwide going on in mining and exploration. Everyone’s working, even in Alaska. We are within a 150-mile radius of two large gold mines. They take up a lot of our work base.”

Walters adds it is difficult to find people who want to stay in Alaska when there are plenty of jobs available in warmer climates. Despite this challenge, the company has remained productive. “We haven’t had to shut down, but we have had to change the way we do business,” he says. “We keep our crews working even in the tight times, so we don’t lose good talent.”

Usibelli has a union operations crew, and uses it to look for new hires. After that, it puts the word out on its own. “A lot of people do want to see what Alaska looks like,” he notes. The company, however, is based in a small town of 1,000 people, and housing is often a problem. It is located near the entrance to Denali National Park, and nearby hotels are typically monopolized by tourists. Private land is available if people are willing to build homes, but that takes time.

“This is a problem that snuck up on us,” he says. “I’ve worked here for 28 years. For 20 years, there was virtually no turnover. We still have a good crew, and it’s a good place to work. The average age of our employees is 45, and a lot of people are retiring or ready to retire. The new people coming in are from a different generation; it’s a different type of worker.”

He says this generation is “interested in working in one spot forever. It’s not bad; it’s just the reality today. It’s something we need to work with.”

Walters says Usibelli has an active safety program in compliance with the National Mining Safety and Health Association. It had gone 797 days without a safety incident before one miner twisted his back and lost one day of work, he notes. The company is at more than 300 days now. “We’re very concerned about safety – it’s a big deal,” he says.

The company has seven trucks, six tractors, four loaders/shovels, two drills, a 33-cubic-yard dragline, two graders, a coal loading facility, support equipment and a maintenance shop. It handles all its own maintenance.
 
< Previous Story   Next Story >