Coal Mining in the US to 2020

The US had the largest proven reserves of coal globally at 237 billion tonnes (Bnt) in 2014, accounting for 26.6% of the global total. Sub-bituminous and lignite accounted for 54.4% or 129Bnt, while the remaining 45.6% or 108Bnt were bituminous coal. The state of Wyoming was the country’s largest producing state, followed by West Virginia and Kentucky.

Scope

GlobalData's 'Coal Mining in the US to 2020' report contains an overview of the coal mining industry in the US together with the key demand drivers affecting the industry. Further, it provides information about reserves, reserves by state, proximate analysis of various coal, historic and forecast production and consumption to 2020, production by grade and type, production forecast by major mines, share of production by state and by basin, consumption by type, coal exports, exports by country, exports by customs districts, competitive landscape, fiscal regime and key active and development projects.

Key Highlights

• Montana had the highest reserves, accounting for 29.1% of the US total, followed by Illinois with 14.7%, Kentucky with 5.5%, and Pennsylvania and Ohio each having a share of 4.4%.

• The US produced an estimated 906.9 million tonnes (Mt) of coal in 2014, up by 1.6% compared with 2013, owing to higher natural gas prices due to which coal remained the dominant source for generating power.

• Wyoming was the largest producing state in 2014, with 358.9Mt, followed by West Virginia with 101.5Mt, Kentucky (70.2Mt), Pennsylvania (55.3Mt) and Illinois (52.5Mt). The rest of it originated from other states which include Montana, Texas and Indiana.

Reasons to buy

To gain an understanding of the coal mining industry in the US, its reserves, reserves by state, proximate analysis of various coal types, historic and forecast production split by grade and type and major mines and consumption also split by type to 2020, coal exports, exports by customs districts, competitive landscape, fiscal regime and key active and development projects.

Companies mentioned

Peabody Energy Corporation , Alpha Natural Resources, Inc, Arch Coal, Inc, Consol Energy Inc, Cloud Peak Energy Inc

Table of Contents

1 Executive Summary 1

2 Coal Mining in the US – Reserves, Production, Consumption and Trade 6

2.1 US Coal Reserves by State and Proximate Analysis by Basin and Major Mines 6

2.1.1 Proximate analysis of the US coal deposits by basins 7

2.1.2 Proximate analysis of major mines located in the Powder River Basin 7

2.2 Global Coal Reserves by Region and Proximate Analysis by Country 8

2.3 Historical and Forecast Production 9

2.3.1 Production by grade – bituminous and lignite and anthracite 11

2.3.2 Production by type – coking and non-coking 12

2.3.3 Production forecast by major mines 15

2.4 Total Production by State 16

2.5 Production by Basin 17

2.6 Market Share of Major Companies by Sales Volume 18

2.7 Coal Prices 19

2.7.1 Spot coal prices – US Central Appalachian 19

2.7.2 Sales price of Coal – by state and its coal type 20

2.8 Active Mines 21

2.9 Development Projects 22

2.10 Consumption and Trade 22

2.10.1 Domestic consumption vs electricity generated from coal 22

2.10.2 The US coal exports 25

2.11 Demand Drivers 28

2.11.1 Transition in the US power generation sector will reduce but not wipe off coal till 2020 28

2.11.2 Demand in Europe 29

2.11.3 Demand in Asia – China and South Korea 29

3 Competitive Landscape 30

3.1 Peabody Energy Corporation 30

3.2 Alpha Natural Resources, Inc. 32

3.3 Arch Coal, Inc. 33

3.4 Consol Energy Inc. 36

3.5 Cloud Peak Energy, Inc 37

4 Fiscal Regime 39

4.1 The US Mining Industry – Governing Bodies 39

4.1.1 Federal 39

4.1.2 State 40

4.2 The US Mining Industry – Governing Laws 41

4.2.1 Federal laws 41

4.2.2 State laws 42

4.3 The US Mining Industry – Mining Ownership, Licenses 43

4.3.1 Coal mining lease 43

4.3.2 Exploratory license 43

4.3.3 State permits 43

4.4 The US Mining Industry – Rights and Obligations 44

4.4.1 Rights 45

4.4.2 Obligations 45

4.5 The US Mining Industry – Key Fiscal Terms 45

4.5.1 Bonus 45

4.5.2 Rentals 45

4.5.3 Federal reclamation fee 45

4.5.4 Occupation tax 45

4.5.5 Royalty 45

4.5.6 Mining claim fees 46

4.5.7 State fee 46

4.5.8 State mineral resources severance tax and fees 46

4.5.9 State real property tax 51

4.5.10 Corporate taxes 53

4.5.11 Alternative minimum tax 57

4.5.12 Capital gains tax 57

4.5.13 Deductions and allowances 57

4.5.14 Depreciation 58

4.5.15 Branch profit tax 58

4.5.16 Withholding tax 58

4.5.17 Loss carry forward 58

4.5.18 Value added tax (VAT) 58

5 Appendix 59

5.1 Abbreviations 59

5.2 Secondary Research 59

5.3 Primary Research 59

5.4 Contact GlobalData 60

5.5 About GlobalData 60

5.6 GlobalData’s Services 60

5.7 Disclaimer 62

List of Tables

Table 1: Coal Mining in the US – Total Recoverable Reserves by State (Billion Tonnes), 2013 6

Table 2: Coal Mining in the US – Proximate Analysis of US Coal by Basin, 2014 7

Table 3: Coal Mining in the US – Proximate Analysis of Major Coal Mines in PRB, 2014 7

Table 4: Coal Mining in the US – Global Coal Reserves by Region (Billion Tonnes), 2013 8

Table 5: Coal Mining in the US – Proximate Analysis of Coal Across Various Producing Countries, 2014 8

Table 6: Coal Mining in the US – Total Production (Million Tonnes), 2000–2020 10

Table 7: Coal Mining in the US – Total Production by Grade – Bituminous, Lignite and Anthracite (Million Tonnes), 2000–2020 12

Table 8: Coal Mining in the US – Total Production by Type: Coking and Non-Coking (Million Tonnes), 2000–2020 14

Table 9: Coal Mining in the US – Coal Production* by Basin (Million Tonnes), 2014 17

Table 10: Coal Mining in the US – Active Mines, 2015 21

Table 11: Coal Mining in the US – Development Projects, 2015 22

Table 12: Coal Mining in the US – Coal Consumption (Million Tonnes) vs. Electricity Generated from Coal (Terawatt Hours), 2000–2020 23

Table 13: Coal Mining in the US – Domestic Consumption vs. Consumption by Type (Million Tonnes), 2010–2020 24

Table 14: Coal Mining in the US – Export to Destination Countries (Million Tonnes), 2014 25

Table 15: Coal Mining in the US – Metallurgical Coal Exports (Million Tonnes) vs Average Metallurgical Coal Prices (US$/Tonne), 2014 27

Table 16: Coal Mining in the US – Peabody Energy Corporation, Major Projects, 2015 31

Table 17: Coal Mining in the US – Alpha Natural Resources, Inc., Major Projects, 2015 32

Table 18: Coal Mining in the US – Arch Coal Inc., Major Projects, 2015 35

Table 19: Coal Mining in the US – Consol Energy Inc., Major Projects, 2015 36

Table 20: Coal Mining in the US – Arch Coal Inc., Major Projects, 2015 38

Table 21: The Mining Industry in the US – Minnesota Occupation Tax Rates (%), 2014 45

Table 22: The Mining Industry in the US – Coal Royalty Rates (%), 2014 46

Table 23: The Mining Industry in the US – Mining Claim Fees (US$), 2014 46

Table 24: The Mining Industry in the US – Tennessee Mining Fees (US$), 2014 46

Table 25: The Mining Industry in the US – Alaska Mining Tax on Net Income (%), 2014 47

Table 26: The Mining Industry in the US – Montana Coal Severance Tax (%), 2014 48

Table 27: The Mining Industry in the US – Nevada Mineral Resources, Net Proceeds Tax Rates (%), 2014 49

Table 28: The Mining Industry in the US – State Federal Income Tax Rates (%), 2014 53

Table 29: The Mining Industry in the US – State Corporate Income Tax Rates (%), 2014 54

Table 30: The Mining Industry in the US – Alaska State Corporate Income Tax Rates (%), 2014 55

Table 31: The Mining Industry in the US – Arkansas State Corporate Income Tax Rates (%), 2014 55

Table 32: The Mining Industry in the US – Kentucky State Corporate Income Tax Rates (%), 2014 55

Table 33: The Mining Industry in the US – Louisiana State Corporate Income Tax Rates (%), 2014 56

Table 34: The Mining Industry in the US – Mississippi State Corporate Income Tax Rates (%), 2014 56

Table 35: The Mining Industry in the US – New Mexico State Corporate Income Tax Rates (%), 2014 56

Table 36: The Mining Industry in the US – North Dakota State Corporate Income Tax Rates (%), 2014 56

Table 37: The Mining Industry in the US – Percentage Mineral Depletion Rates (%), 2014 57

List of Figures

Figure 1: Coal Mining in the US – Coal Deposits by Basin 7

Figure 2: Coal Mining in the US – Total Production (Million Tonnes), 2000–2020 10

Figure 3: Coal Mining in the US – Total Production by Grade – Bituminous, Lignite and Anthracite (Million Tonnes), 2000–2020 11

Figure 4: Coal Mining in the US – Total Production by Type – Coking and Non-Coking (Million Tonnes), 2000–2020 13

Figure 5: Coal Mining in the US – Production by Major Mines (Million Tonnes), 2013–2020 15

Figure 6: Coal Mining in the US – Coal Production by State (%), 2014 16

Figure 7: Coal Mining in the US – Coal Production* by Basin (%), 2014 17

Figure 8: Coal Mining in the US – Market Share by Sales Volume (%), 2014 18

Figure 9: Coal Mining in the US – US Central Appalachian Coal Spot Prices* (US$/Tonne), 2006–2014 19

Figure 10: Coal Mining in the US – Average Sales Price of Coal, by State and Coal Type (US$/Tonne), 2015* 20

Figure 11: Coal Mining in the US – Domestic Consumption (Million Tonnes) vs Electricity Generated from Coal (Terawatt Hours), 2000–2020 23

Figure 12: Coal Mining in the US – Domestic Consumption vs. Consumption by Type (Million Tonnes), 2010–2020 24

Figure 13: Coal Mining in the US – Exports to Destination Countries (%), 2014 25

Figure 14: Coal Mining in the US – Exports by Customs District, Top Five Ports (%), 2014 26

Figure 15: Coal Mining in the US – Exports by Custom Districts, Top Five Ports, Map 26

Figure 16: Coal Mining in the US – Metallurgical Coal Exports (Million Tonnes) vs Average Metallurgical Coal Prices (US$/Tonne), 2014 27

Figure 17: Coal Mining in the US – Coal Consumption Forecast, by Sector (Million tonnes), 2015–2020 28

Figure 18: Coal Mining in the US – US Electricity Generation Forecast, by Energy Source (Terawatt Hours), 2014–2020 29

Figure 19: Coal Mining in the US – Major Companies, by Total Annual Revenue (US$ Billion), 2014 30

Figure 20: Coal Mining in the US – Alpha Natural Resources, Location of Mines, Map 33

Figure 21: Coal Mining in the US – Arch Coal, Inc., Location of Mines, Map 35

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