North Dakota lignite mines produce nearly 30 million tons in 2007

(1/08/08)

North Dakota’s four large lignite mines produced 29.7 million tons of lignite coal in 2007 – falling just short of 30 million tons. Since 1988, North Dakota’s lignite production has consistently been near the 30 million tons per year range, which makes it one of 15 major coal producing states in the United States.

“The lignite mines and power plants represent one of North Dakota’s most stable industries, providing good paying jobs and substantial tax revenue to the state,” said Steve Van Dyke, director of communications for the Lignite Energy Council. “The consistency in annual coal production demonstrates the ongoing demand for lignite-based energy in our region.”

The lignite industry is a major employer and taxpayer in North Dakota. Estimated state tax revenues resulting from lignite activities were $83.6 million in 2007. Direct and indirect employment in 2007 totaled over 25,000 jobs with average salaries at the mines and power plants at approximately $70,000 annually.

About 79 percent of the lignite produced in 2007 was used to generate electricity, 13.5 percent was used to generate synthetic natural gas, and 7.5 percent was used to produce fertilizer products. Lignite-based power plants in North Dakota generate electricity at a cost significantly below that of all coal and natural gas plants nationwide. The use of lignite to generate electricity results in lower electricity costs for consumers, farms and businesses in North Dakota, Minnesota, South Dakota and Montana.

The Freedom Mine, the state’s largest lignite producer, sold about 15 million tons, which was used by three customers – Dakota Gasification Company’s Great Plains Synfuels Plant, and Basin Electric Power Cooperative’s Antelope Valley and Leland Olds Stations.

The Falkirk Mine, the state’s second largest producer, sold 7.8 million tons last year. Its customer is Great River Energy’s Coal Creek Station, the largest of the state’s seven power plants. The North American Coal Corporation owns both the Freedom Mine and the Falkirk Mine.

The Center Mine, owned by BNI Coal, a subsidiary of ALLETE, produced 3.9 million tons, which were primarily sold to Minnkota Power Cooperative’s Milton R. Young Station.

The Beulah Mine, owned and operated by Dakota Westmoreland Corporation, produced 2.9 million tons. Otter Tail Power Company’s Coyote Station and Montana-Dakota Utilities Co.’s Heskett Station purchase coal from the Beulah Mine.

Over 2 million consumers and businesses in the Upper Midwest use the electricity generated from lignite, while the Great Plains Synfuels Plant supplies synthetic natural gas made from lignite to 225,000 homes and businesses in the East.