Texas Coal Mines Fading with the Market

Researched by Industrial Info Resources (Sugar Land, Texas)--Plans by Luminant Mining Company LLC, a subsidiary of the newly formed Vistra Energy Corporation (Dallas, Texas), to close the Oak Hill lignite mine near Henderson, Texas, are a prime example of the dwindling market for Texas lignite and the blight of the coal industry in general as it struggles against a rising tide of new renewable power sources and fuel switching to natural gas and Powder River Basin coal.

Mine production at Oak Hill ceased in September, and the mine laid off 132 workers. The mine will officially shut down by December 16, 2016. Reclamation activities have started. Oak Hill supplied coal to the nearby Martin Lake power plant, which will continue to run both lignite and PRB coal from other sources.

Market and regulatory forces have created a challenging market for coal-fired power plant operators like Luminant. Even though Luminant produces a majority of its power from coal and nuclear, the company is looking to other fuel sources and purchased two large natural gas-fired power plants totaling 3,000 megawatts earlier this year.

For details on the challenging Texas coal market see related news article: Report: Seven Texas Coal-Fired Generators Lack Financial Viability.

Mobile equipment from the Oak Hill mine will be moved to other mines. Buildings and large mining equipment like the draglines will remain at the site in case the mine is reopened at some point in the future.

Luminant closed down its Monticello and Winfield mines in Mount Pleasant, Texas, in 2015. There's a large earthmoving and reclamation project on going at Monticello, as well.

Luminant continues to mine Texas lignite at the Big Brown, Kosse, Liberty, and Tatum mines.

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