Industry

IndustryMining MethodsSafety & Environment

Coal is an abundant, efficient and affordable natural resource used primarily to provide fuel for the generation of electric power. World-wide recoverable coal reserves are estimated to be approximately 1.0 trillion tons. According to the EIA, the United States is one of the world’s largest producers of coal and has approximately 27% of global coal reserves, representing approximately 244 years of supply based on current usage rates.


The coal sector has become increasingly global in nature, and as a result, events in certain regions of the world are impacting market dynamics across the globe, including in the eastern United States. Below is a list of certain developments around the world that are impacting the coal sector:

  • Demand for coal by emerging global economies, in particular China and India, continues to increase.
  • Traditional exporters of coal to Asia and other regions around the world are challenged to meet the growing demand for coal, which is creating export opportunities for other coal producers, particularly those located in the eastern United States.
  • The recent weakness of the U.S. dollar has also improved the competitiveness of U.S. exports.
  • Coal supply curtailment in Australia is causing Asian countries dependent on Australian coal to source coal from other places.

We expect near-term growth in U.S. coal consumption to be driven by greater utilization at existing coal-fired electricity generating plants, and we expect longer-term growth in U.S. coal consumption to be driven by the construction of new coal-fired plants. These factors, coupled with the declining coal reserves and production levels in the United States, particularly in the eastern United States, have contributed to the recent escalation in coal prices, particularly those in the eastern United States, and we expect these attractive sector fundamentals to continue into the future.