The following is an extract from a recent email. I would like comments from anyone in the coal mining industry as to correlating or opposing facts. This is one subject I have found very little discussion on, and I feel it needs attention. Thanks The coal mines in.."Pennsylvania" are..in terrible shape. These are the mines that supply Keystone with its coal. The process controllers in the underground conveyor systems haven't been checked, not to mention the controllers in the ventilation systems...they use huge electric-powered shovels, which won't have power because the utilities won't have coal. Of course, if they decide to fire up all those idle plants to put them on standby, they're going to need coal. Lots of it. Unquestionably more than current production will support, since coal mines aren't in the habit of digging up coal that they can't sell. That means re-opening some mines, which takes time, and ramping up production in working mines, which also takes time. It means calling a bunch of people back to work, who've been laid off, in some cases for years, getting them into shape, re-training, and sending them in to do work they haven't done in a long time...the utilities are dependent on the mines and the trains, the mines are dependent on the utilities, and all of them are dependent on banks, telephone companies and thousands of suppliers for things like ball bearings and grease and all the thousands of things that make a mine or a railroad or a power plant work. Study after study has shown that over 60% of small business aren't even thinking about Y2K, yet small businesses account for the bulk of our GDP, the stuff that we need to survive... No one keeps thing in inventory anymore: they use JIT (Just In Time) ordering and procurement processes. How much coal does a power plant have in inventory? Around here, its about 3 days worth...

-- Anonymous, August 05, 1998

Answers

"Coal mining plants and y2k"

I think you will find this situation in most of the service and supply areas. Many of these mines and plants are under-financed and under staffed. Many have a hard enough time making ends meet at the production level.

This is the area that most won't be taking into consideration.

Many have not "run the scenarios" to see the actual supply chain.

A mine, even if it doesn't have the computer or embedded system problems, (if there are any left), will still be impacted by the interuption in power and finances and their division of labor will be in the same shape as every other Co.

The "Division of Labor" and the "Psychology" of Y2k has been, almost completely, overlooked.

A coal mine needs vendors as does the railroad that ships the coal to the power plant. Any breakdown, up or down stream can have a great impact upon the human factor.

Dave Jones

-- Anonymous, August 05, 1998