Sago Mine Idled By Owner

The owner of the Sago Mine, where 12 men died after an explosion last year, said Wednesday it has idled the coal operation because of high production costs and weak prices.

International Coal Group Inc. spokesman Ira Gamm described the shutdown as purely a business decision.

"No other factors are involved," he said. "This was a business decision, part of our ongoing evaluation of our operations."

The Sago Mine became the focus of national attention for two days in January 2006 after a methane gas explosion trapped a team of miners deep inside its shafts. By the time searchers reached the team 40 hours later, only one man had survived the carbon monoxide gases.

It was the highest-profile coal mining accident in recent U.S. history and led to sweeping changes in federal and state mine safety laws.

Gamm said the company could reopen the mine if prices rebound.

"I want to emphasize 'idled,' not closed," he said. "A small crew remains employed at Sago to maintain the mine infrastructure."

ICG has cut the number of underground workers at the mine from 90 last July to 44 at the end of 2006, according to the federal Mine Safety and Health Administration.

"The remaining Sago Mine workers have been offered employment" at other ICG mines, Gamm said. The company's Imperial and Sentinel Clarion mines are located near Sago.

The Scott Depot-based coal company idled several mines in September and has cut back in recent months on plans for developing new mines.

The likes of Richmond, Va.-based Massey Energy Co. and Pittsburgh-based Consol Energy have idled mines recently as well in response to weak coal prices and high costs for diesel fuel, explosives and labor.

Sago produced 323,000 tons of coal last year, but Gamm said the mine had run into tough geological conditions. "It wasn't roof falls. It was more in terms of amount of yield," he said. "It's a percentage of coal versus a percentage of rock that you mine."