U.S. Coal Exports Reach Highest Level Since 1992

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Researched by Industrial Info Resources (Sugar Land, Texas)--The U.S. Energy Information Administration (EIA), the statistical arm of the U.S. Department of Energy, has reported that U.S. coal exports in the first quarter of this year were 26.6 million tons, representing the highest level of quarterly coal exports since 1992, when 27 million tons of coal were exported from the U.S. Coal exports were up 49% from the corresponding quarter of 2010 and were double first-quarter 2009 levels.

The EIA reports that exports of coking coal, which represented 64% of the exported coal, were up 21% from 1Q10. However, the primary driver of the export growth was steam coal, exports of which increased 160% from the same period last year. "Disruptions in the global coal supply chain from natural disasters, such as typhoons and flooding in Australia's key coal mining region, have resulted in higher demand for U.S. coal worldwide," reports the agency.

Click on image at right for a year-over-year comparison of first-quarter U.S. coal exports.

In an April 2011 webcast on the "Future of Coal Generation," industry exports stated that although coal-fired power generation in the U.S. is declining, demand from abroad, particularly from Asia, will buoy the U.S. coal mining sector. For additional information, see April 25, 2011, article - Experts: Coal Exports Will Offset Projected Declines in U.S. Electric Mix.

Industrial Info is tracking more than $12.8 billion in active U.S. projects involving the mining and processing of coal. The increased demand from abroad is helping fuel not only grassroot coal mine construction, but also the expansion and restart of existing coal mines.

One such expansion project is under way at Arch Coal Incorporated's (NYSE:ACI) (St. Louis, Missouri) Viper underground coal mine in Elkhart, Illinois. The mine was acquired by Arch Coal in its recent acquisition of International Coal Group. The 2.4 million-ton-per-year mine is being expanded to produce between 3 million and 3.4 million tons of coal per year. The expected mine life is being increased approximately 25 years by the construction of a portal facility and a third mine slope. In addition, construction of a five-mile conveyor from the new portal to the coal preparation plant is also planned to begin this year. The projects have a combined estimated total investment value of more than $40 million. The mine expansion is expected to be completed in the fourth quarter of this year, while the conveyor addition is expected to be completed late next year.

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