ICG Idles Sago Mine Due To High Costs, Low Coal Prices

TALLMANSVILLE, W.Va. (AP) - International Coal Group is idling
the Sago Mine due to high production costs and weak coal prices.
Spokesman Ira Gamm describes the shutdown as purely a business
decision. He says no other factors were involved.
From July to the end of 2006, the number of underground miners
at Sago had been cut from 90 to 44.
Gamm says the Scott Depot-based mining company has offered the
remaining workers jobs elsewhere.
The Upshur County mine was the site of a January Second, 2006,
methane explosion that led to the deaths of 12 miners.
The accident was the highest-profile coal mining accident in
recent U-S history and led to sweeping changes in federal and state
mine safety laws.
Separate investigations by both the state and I-C-G concluded
that lightning caused the blast, but the United Mine Workers blames
mine roof friction.
Gamm emphasized that I-C-G is not closing Sago permanently. The
company idled several mines in September. I-C-G also has cut back
plans for developing new mines in recent months.

(Copyright 2007 by The Associated Press. All Rights Reserved.)


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