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Asia fuels hope for US coal exports

DESPITE a decline in overall production, North American coal exports show promise thanks to burge...

Justin Niessner
Asia fuels hope for US coal exports

Increased metallurgical exports from Appalachia have been one of the few bright spots on the American coal scene as the industrial appetites of China and India have raised demand – but a recent study suggests post-Fukushima Japan may be the deciding factor in the fate of US coal mining.

A report by industry specialist GBI Research says coal consumption in Japan is expected to remain strong even as environmental campaigns and legislation seek to lower the country’s fossil fuel usage.

GBI said the recent Fukushima disaster threatened the future of nuclear energy in Japan as local perceptions on the power source had changed.

The researcher projected the phenomenon beyond Japan, citing Germany’s total abandonment of nuclear energy in 2011 and subsequent support of coal power generation.

However, International energy information provider Platts stressed that although evolving policies in Asia bode well for long-term American coal exports, infrastructure shortcomings had to be addressed.

In an article published by the company, officials at American and Canadian ports described a scramble by coal exporters to secure terminal space in Vancouver, Oregon, Baltimore and Norfolk.

Platts noted coal terminal construction efforts by Peabody Energy and Armstrong Coal at sites north of Seattle and at the mouth of the Mississippi, respectively.

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