Oxbow currently operates the Elk Creek mine, which is an underground longwall coal mine just north of the town of Somerset, Colo. The 785-acre federal coal lease tract contains approximately 3.8 million tons of recoverable coal that will be bypassed if not leased. Coal mining has been conducted in the area for more than 100 years. The Elk Creek mine has been in operation since 2002 and produces approximately 3.8 million tons of coal annually. The Oxbow mine employs generates approximately $7.6 million in royalties, of that, approximately 50% goes back to the state of Colorado.
Currently, Oxbow Mining’s one mine, Elk Creek, produces 5 million tons of high-quality bituminous coal annually. The D-seam coal from this underground mining operation has high calorific value and is low in ash, sulfur and mercury. Elk Creek’s coal is much sought after because it meets all environmental standards and is perfect for power generation needs.
