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3.4.15.wavCoal mining was another Russian economic activity in Alaska that did not sustain profits. When California's population boomed during the 1849 rush to the gold fields, coal was much in demand. The Russian-American Company assigned Peter Doroshin, a young mining engineer, to study Alaska's coal and other mineral deposits. When he returned to Russia in 1853, Doroshin convinced the company to mine coal at Port Graham.
Work started in 1855. The workers installed a pump in 1857, erected buildings in 1858, and dug a 70-foot shaft in 1859. At the site called Coal Village, the miners produced about 30 to 35 tons of coal daily. At the peak of operation, Coal Village was the third-largest Russian settlement in Alaska.
1860 drawing of Coal Village near Port Graham
Although the Russian-American Company put a great deal of effort into the mining operation, it failed. There were several reasons. The mine was worked for immediate profit, not development. The miners were drawn from the Russian army in Siberia. As soon as a group of soldiers learned something about mining, it was time for them to leave Coal Village. Since the soldiers and other workers were paid by the day, there was little reason for them to work hard to produce more.
Besides poor management of the mine, there were other reasons for its failure. The only markets for Alaska coal were in San Francisco and Hong Kong. However, the Alaskan coal could not compete with Australian, British, or Japanese coal sold there. British coal was of better quality and sold for $15 a ton. Australian coal sold for $8 a ton and Japanese coal for $5 a ton. Even at the Russian-American Company steamers and shops at Sitka, it was cheaper to use coal shipped from British Columbia. Fire damaged the works at Coal Village in 1860, which triggered the decision to shut down the mine.Â
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