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Researched by Industrial Info Resources (Sugar Land, Texas)--The U.S. Energy Information Administration (EIA) reported on Monday the importance of the Powder River Basin in providing coal to the U.S. power market. More than 40% of coal produced in the U.S. comes from 16 mines in the Powder River Basin, which is located primarily in northeast Wyoming and southeast Montana, according to the EIA's Today in Energy report.
Industrial Info is tracking 22 operational coal mines and $510 million worth of coal-mine projects in Wyoming and Montana.
In all, Industrial Info is tracking more than $3.8 billion worth of coal-mine projects in the U.S. For related information, see June 12, 2019, article - U.S. Coal Mines Set for $1.33 Billion in Project Kickoffs through End of Year.
Click on the image at right for a graph showing U.S. coal-mine project activity by market region.
Four companies collectively own more than half of the Powder River Basin mines, which produced 87% of the basin's coal in 2018, according to the EIA. The EIA noted that two of the companies, Cloud Peak Energy Incorporated (Gillette, Wyoming) and Blackjewel, LLC (Milton, West Virginia), filed bankruptcy this year. Plans by Navajo Transitional Energy Company, a business subsidiary of the Navajo Nation, to buy Cloud Peak were approved by a bankruptcy court judge earlier in August.
The two other companies, Peabody Energy (NYSE:BTU) (St. Louis, Missouri) and Arch Coal Incorporated (NYSE:ARCH)(St. Louis), are proposing a joint venture that involves some of the mines in the basin. Peabody and Arch unveiled their joint venture plan in June to combine their Powder River Basin and Colorado coal mine operations. The venture will combine two of the largest coal mines in the U.S -- Arch's Black Thunder Mine and Peabody's North Antelope Rochelle Mine (NARM) -- into a single complex. For more information, see June 19, 2019, market brief - Peabody Energy, Arch Coal to Combine Powder River Basin.
For more on Peabody Energy, see February 7, 2019, article - Peabody Energy to Boost Capital Expenditures, Targets Seaborne Markets. For more on Arch Coal, see February 15, 2019, article - Arch Coal to Develop New Coking Coal Mine in West Virginia to Serve Global Markets.
Most of the coal produced in the Powder River Basin supports U.S. electric power generation, the EIA noted. However, both U.S. total coal production and Powder River Basin coal production peaked in 2008 and have since declined. Powder River Basin coal production reached a high of 496 million short tons (MMst) in 2008 and fell to 314 MMst in 2016 but has since increased slightly to 324 MMst in 2018.
Coal's share of the U.S. electricity generation mix was 48% in 2008 and fell to 28% in 2018, as renewables and natural gas have made strong gains in the power market, the EIA said. The EIA's Short-Term Energy Outlook expects coal's share of power generation to be 24% in both 2019 and 2020. Coal production in the western U.S. is expected to fall by 12% in 2019.
One of the coal-mining projects tracked by Industrial Info is RAMACO Resources Incorporated's (NASDAQ: METC) (Lexington, Kentucky) planned 6 million to 8 million-ton-per-year Brook surface highwall coal mine near Sheridan, Wyoming. Construction is planned to begin this year, with completion in late 2021. For more information, see Industrial Info's project report.
Near Colstrip, Montana, Westmoreland Coal Company (Colorado Springs, Colorado) is planning to expand and extend the life of the Rosebud Coal Mine, Area F. The surface mine currently produces 7 million to 8 million tons per year from three pits. The project is planned for kickoff in early 2020, with completion in early 2021. For more information, see Industrial Info's project report.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
Industrial Info is tracking 22 operational coal mines and $510 million worth of coal-mine projects in Wyoming and Montana.
In all, Industrial Info is tracking more than $3.8 billion worth of coal-mine projects in the U.S. For related information, see June 12, 2019, article - U.S. Coal Mines Set for $1.33 Billion in Project Kickoffs through End of Year.
Four companies collectively own more than half of the Powder River Basin mines, which produced 87% of the basin's coal in 2018, according to the EIA. The EIA noted that two of the companies, Cloud Peak Energy Incorporated (Gillette, Wyoming) and Blackjewel, LLC (Milton, West Virginia), filed bankruptcy this year. Plans by Navajo Transitional Energy Company, a business subsidiary of the Navajo Nation, to buy Cloud Peak were approved by a bankruptcy court judge earlier in August.
The two other companies, Peabody Energy (NYSE:BTU) (St. Louis, Missouri) and Arch Coal Incorporated (NYSE:ARCH)(St. Louis), are proposing a joint venture that involves some of the mines in the basin. Peabody and Arch unveiled their joint venture plan in June to combine their Powder River Basin and Colorado coal mine operations. The venture will combine two of the largest coal mines in the U.S -- Arch's Black Thunder Mine and Peabody's North Antelope Rochelle Mine (NARM) -- into a single complex. For more information, see June 19, 2019, market brief - Peabody Energy, Arch Coal to Combine Powder River Basin.
For more on Peabody Energy, see February 7, 2019, article - Peabody Energy to Boost Capital Expenditures, Targets Seaborne Markets. For more on Arch Coal, see February 15, 2019, article - Arch Coal to Develop New Coking Coal Mine in West Virginia to Serve Global Markets.
Most of the coal produced in the Powder River Basin supports U.S. electric power generation, the EIA noted. However, both U.S. total coal production and Powder River Basin coal production peaked in 2008 and have since declined. Powder River Basin coal production reached a high of 496 million short tons (MMst) in 2008 and fell to 314 MMst in 2016 but has since increased slightly to 324 MMst in 2018.
Coal's share of the U.S. electricity generation mix was 48% in 2008 and fell to 28% in 2018, as renewables and natural gas have made strong gains in the power market, the EIA said. The EIA's Short-Term Energy Outlook expects coal's share of power generation to be 24% in both 2019 and 2020. Coal production in the western U.S. is expected to fall by 12% in 2019.
One of the coal-mining projects tracked by Industrial Info is RAMACO Resources Incorporated's (NASDAQ: METC) (Lexington, Kentucky) planned 6 million to 8 million-ton-per-year Brook surface highwall coal mine near Sheridan, Wyoming. Construction is planned to begin this year, with completion in late 2021. For more information, see Industrial Info's project report.
Near Colstrip, Montana, Westmoreland Coal Company (Colorado Springs, Colorado) is planning to expand and extend the life of the Rosebud Coal Mine, Area F. The surface mine currently produces 7 million to 8 million tons per year from three pits. The project is planned for kickoff in early 2020, with completion in early 2021. For more information, see Industrial Info's project report.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
