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Usibelli Coal Mine Officials Tell Denali Borough Assembly mine supports jobs, warn of replacement costs if coal removed
Summary
Representatives of Usibelli Coal Mine told the Denali Borough Assembly the mine provides year‑round jobs and local economic activity, described longterm coal reserves and export history, and answered questions about safety, rail logistics and potential carbon capture options.
Lorelei Simon, vice president of external affairs for the Usibelli Coal Mine, told the Denali Borough Assembly that the company is the largest year‑round private employer in the borough and urged local leaders to consider coal’s role in Interior Alaska's energy mix.
Simon said the mine employs about 105 year‑round workers who receive roughly $15 million in direct salaries and wages, and she cited a McKinley Group economic report the company commissioned estimating that removing coal from the Interior power mix would increase annual fuel costs for the Interior by roughly $273 million. “We produce about a million tons a year,” Simon said, and she described an estimated 80 million tons of proven reserves in the mine’s current Jumbo Dome area.
The presentation summarized safety and community engagement measures at the mine. Simon said the company has an internal safety program and marked an upcoming milestone of a full year without a lost‑time accident. She described company giving to local education programs and partnerships with Tri‑Valley High School, the University of Alaska Fairbanks and local preschools.
During questions from assembly members and members of the public, Simon explained how coal is transported by rail to Interior power plants and how past export markets collapsed after 2016 when global competition and infrastructure changes reduced demand. She said reopening exports would require substantial capital and port and rail investments, and mentioned Port MacKenzie as a potential option if its rail connection is completed. “Port McKenzie is always a thought for us,” she said.
Assembly members asked about potential job losses if local units closed; Simon said the company did not anticipate large, immediate layoffs when one plant previously examined closure, though retirements might reduce staffing. She also described technical and permitting hurdles for any new mines or plants and said proposals that include carbon capture and storage would be at an early, uncertain stage.
A member of the public asked about methane emissions. Simon answered that methane released in mining is not the same as methane from combustion and said combustion converts volatile gases as part of the boiler process. She agreed to provide follow‑up data on emissions on request.
The presentation concluded with an invitation for borough officials and residents to tour the Healy mine operations and reclamation work during the summer.
