Reports related to this article:
Project(s): View 5 related projects in PECWeb
Plant(s): View 5 related plants in PECWeb
Released January 28, 2019 | SUGAR LAND
en
Researched by Industrial Info Resources (Sugar Land, Texas)--The U.S. market for coal production continues to face brutal realities. According to the U.S. Energy Information Administration (EIA), total domestic coal production in 2018 was 755 million short tons, down 2.6% from 2017, and 36% from the previous decade. Coal price increases were a major factor. Industrial Info is tracking about $1.55 billion worth of U.S. projects related to coal mining that are set to kick off in 2019.
Click on the image at right for a graph detailing the top 10 U.S. states for coal-mining project kickoffs in 2019, by investment value.
U.S. coal exports increased by about 10 million short tons in 2018, when compared with the previous year, but not enough to offset the decline in domestic consumption, according to the EIA. Only two of the five major U.S. coal-producing basins saw production growth: the Central Appalachian Basin at 4% and the Illinois Basin at 2%. The latter is home to Knight Hawk Coal LLC's (Percy, Illinois) proposed, $200 million life extension at the Blackhawk Coal Mine near Sparta, Illinois.
Knight Hawk plans to expand the mine's reach into an adjacent reserve to extract a pair of coal seams via conventional surface mining, adding seven or eight years to the mine life. The Blackhawk mine currently has 12 million tons of reserves. For more information, see Industrial Info's project report.
In the easternmost area of the Illinois Basin, Blankenberger Brothers Incorporated (Cynthiana, Indiana) is considering the proposed, $25 million Opportunity Coal Mine in Petersburg, Indiana, which would process 1.5 million tons per year from an estimated 35 million-ton reserve in Indiana's Pike and Gibson counties. In the Central Appalachian Basin, Paringa Resources Limited (Rumsey, Kentucky) is evaluating a proposed, $15.8 million expansion of the Poplar Grove Coal Mine Complex in Rumsey, Kentucky, which would add 2.8 million tons per year, over a 25-year mine life, to the complex. For more information, see Industrial Info's reports on the Opportunity and Poplar Grove projects.
Domestic coal consumption fell to 692 million short tons, according to the EIA, its lowest level in 39 years. The EIA attributes much of the decline to the retirement of nearly 15 gigawatts (GW) of domestic coal-fired generation capacity, as power generation accounts for more than 90% of domestic coal consumption.
Coal prices increased in three of the five major coal-producing regions in 2018. Strong international demand for metallurgical and steam coal increased the prices of Northern and Central Appalachian coal by 41% and 39%, respectively, according to the EIA. In the Northern Appalachian Basin, two companies are seeking permits for new underground coal mines: Robindale Energy Services Incorporated's (Latrobe, Pennsylvania) estimated $50 million Rustic Ridge No. 1 mine in Acme, Pennsylvania, would process 600,000 tons per year of metallurgical coal, and Corsa Coal Corporation's (Canonsburg, Pennsylvania) estimated $24 million Keyser mine in Friedens, Pennsylvania, would process between 575,000 and 625,000 tons per year. For more information, see Industrial Info's reports on the Rustic Ridge and Keyser projects.
Last year marks the second in a row in which U.S. coal exports increased, reaching 116 million short tons, or 15% of total U.S. production, according to the EIA. China's consumption of U.S. coal has been closely followed recently, in part due to trade disputes, but the largest importers of U.S. coal in Asia are India, Japan and South Korea. But with other countries following (and often outpacing) the U.S. in reducing coal-fired power generation, exports may not provide as strong a lifeline in the future.
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/.
Click on the image at right for a graph detailing the top 10 U.S. states for coal-mining project kickoffs in 2019, by investment value.U.S. coal exports increased by about 10 million short tons in 2018, when compared with the previous year, but not enough to offset the decline in domestic consumption, according to the EIA. Only two of the five major U.S. coal-producing basins saw production growth: the Central Appalachian Basin at 4% and the Illinois Basin at 2%. The latter is home to Knight Hawk Coal LLC's (Percy, Illinois) proposed, $200 million life extension at the Blackhawk Coal Mine near Sparta, Illinois.
Knight Hawk plans to expand the mine's reach into an adjacent reserve to extract a pair of coal seams via conventional surface mining, adding seven or eight years to the mine life. The Blackhawk mine currently has 12 million tons of reserves. For more information, see Industrial Info's project report.
In the easternmost area of the Illinois Basin, Blankenberger Brothers Incorporated (Cynthiana, Indiana) is considering the proposed, $25 million Opportunity Coal Mine in Petersburg, Indiana, which would process 1.5 million tons per year from an estimated 35 million-ton reserve in Indiana's Pike and Gibson counties. In the Central Appalachian Basin, Paringa Resources Limited (Rumsey, Kentucky) is evaluating a proposed, $15.8 million expansion of the Poplar Grove Coal Mine Complex in Rumsey, Kentucky, which would add 2.8 million tons per year, over a 25-year mine life, to the complex. For more information, see Industrial Info's reports on the Opportunity and Poplar Grove projects.
Domestic coal consumption fell to 692 million short tons, according to the EIA, its lowest level in 39 years. The EIA attributes much of the decline to the retirement of nearly 15 gigawatts (GW) of domestic coal-fired generation capacity, as power generation accounts for more than 90% of domestic coal consumption.
Coal prices increased in three of the five major coal-producing regions in 2018. Strong international demand for metallurgical and steam coal increased the prices of Northern and Central Appalachian coal by 41% and 39%, respectively, according to the EIA. In the Northern Appalachian Basin, two companies are seeking permits for new underground coal mines: Robindale Energy Services Incorporated's (Latrobe, Pennsylvania) estimated $50 million Rustic Ridge No. 1 mine in Acme, Pennsylvania, would process 600,000 tons per year of metallurgical coal, and Corsa Coal Corporation's (Canonsburg, Pennsylvania) estimated $24 million Keyser mine in Friedens, Pennsylvania, would process between 575,000 and 625,000 tons per year. For more information, see Industrial Info's reports on the Rustic Ridge and Keyser projects.
Last year marks the second in a row in which U.S. coal exports increased, reaching 116 million short tons, or 15% of total U.S. production, according to the EIA. China's consumption of U.S. coal has been closely followed recently, in part due to trade disputes, but the largest importers of U.S. coal in Asia are India, Japan and South Korea. But with other countries following (and often outpacing) the U.S. in reducing coal-fired power generation, exports may not provide as strong a lifeline in the future.
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/.
