Exporting Appalachia
Posted on December 28, 2009 | By Denny Tyler | 1 Comment
U.S. Coal Supply and Demand: 2008 Review – (pdf)
Appalachian Region
Coal production in the Appalachian Region reversed a two-year declining trend and ended 2008 at 389.8 million short tons, an increase of 3.2 percent, or 12.0 million short tons. The growth in 2008 in coal production in the Appalachian Region was primarily driven by the large increase in U.S. coal exports, which are predominantly produced in this region.
Coal miner Massey Energy sees chance to boost exports
U.S. coal miner Massey Energy Co (MEE.N) sees opportunities to export more coal to Europe and Asia as global steel production and power generation are starting to pick up, its chief executive said on Wednesday.
“We are obviously encouraged by the positive news we are hearing out of the Asian markets,” Don Blankenship told Wall Street analysts. “China reported economic growth of 7.9 percent in the second quarter.
“We have seen some estimates recently that China may be a net inporter of as much as 50 million tons of met (steel-making metallurgical) coal for the year. This news has helped solidify and improve met coal prices,” he said on a conference call to discuss Massey’s second-quarter earnings.
Blankenship noted Indian steel production was up 9 percent in May from a year earlier and total production for the first five months this year exceeded the same period last year.
“As a result, we are seeing increased demand for our met coal products in this important market,” he said.
Asked how much of the roughly 40 million tons a year Massey produces would be exported, Blankenship said: “I would say we’re going to get close to 50 percent moving to Asia as opposed to sometimes there wasn’t anything going to Asia.”
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“As China and India consume more coal, we believe our opportunity may be greater to sell our coal directly into these markets or to displace Australian and South African coal in the market,” he said.
Coal demand, price, boosts Powder River Basin sales potential
Global demand for coal has increased largely due to the rise of developing markets like China and India, heightening interest in U.S. coal — previously deemed too expensive — especially coal from the Appalachian Mountains in the east.
As a result, Appalachian coal prices have soared. According to the U.S. Energy Information Administration, on June 6 Central Appalachian coal sold for an average $108.25 per short ton, and Northern Appalachian coal at $105.00, more than double the price from a year ago. Much of the increase has been fueled by the overseas demand.
Currently, direct and indirect coal mining jobs make up about five per cent of the labour force of West Virginia, which produces 15 per cent of coal in the US, and makes up 50 per cent of the US’ coal exports.
With the amount of devastation brought on Central Appalachia by mountaintop removal both environmentally and culturally can the practice be justified to satisfy coal exports? I think the obvious answer to that would be a resounding NO.
The largest practitioner of mountaintop removal coal mining in Central Appalachia is Massey Energy. Nearly 50% of Massey’s coal reserves are metallurgical.
http://www.masseyenergyco.com/company/sales.shtml
Massey Metallurgical Coal is the largest supplier of high volatile coking coals in the U.S. and Canadian metallurgical markets. The company also serves the export metallurgical market.
Massey Energy is the fourth largest coal company in the US and the largest in Central Appalachia. The company is continuously making acquisitions of coal mining assets and reserves. The Dante Coal acquisition has raised the company’s current total coal reserves to 2.3 billion tons. Of the total current reserves, 1.0 billion ton is metallurgical coal.
Metallurgical coal (definition) — Coking coal and pulverized coal consumed in making steel.
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As we move forward in the mountaintop removal debate I respectfully request that you ask yourself – why are we really destroying vast areas of the Appalachian Mountains? Is it for energy security (coal keeps the lights on) or something else entirely?
Our remnants of wilderness will yield bigger values to the nation’s character and health than they will to its pocketbook, and to destroy them will be to admit that the latter are the only values that interest us. – Aldo Leopold
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December 31st, 2009 @ 11:47 am
That’s a great point that we should emphasize more often, backed up with these statistics. We are providing comfort and relief to those who would oppose us. And destroying all that we have that is worth saving in the process. Love the new look!