Inside the Coal Industry

Inside the Coal Industry — page 5
public works projects paid for by business taxes Coal is still an important feedstock for electric power plants in the United States China India and several other countries around the world COAL CHALLENGES Coal was once a prospering business relying on a steady and strong demand for its product But in the 2000s mine operators found it increasingly difficult to stay in business By June 2016 the value of coal from the Powder River basin of Wyoming had fallen to 8 80 per short ton How Much for That Coal The price for a ton of coal depends on its rank quality or type where it’s mined how it’s mined its heat content and its sulfur content High-sulfur coal creates more sulfur dioxide emissions and is generally worth less than low-sulfur coal In general coal mined underground is more expensive than coal dug at the surface because the costs of underground mining are higher Coking coal used in steel production must be low-sulfur coal that goes through extensive processing at the mine to reduce the sulfur and ash content The most important factor however is rank The US Energy Information Administration found the following average prices for the different types of coal in 2013 Sub-bituminous 14 86 per short ton 0 9 metric tons Lignite 19 96 per short ton Bituminous 60 61 per short ton Anthracite 87 82 per short ton Coking coal 157 per short ton2 Another important factor is how a buyer pays for the coal Spot prices are quoted for delivery within a year The spot price can change quickly depending on the market price of coal which changes from day to day Most power plants however buy coal through long-term contracts These may run for several years and allow the utility buying the coal a more stable guaranteed price 8