According to its annual industry forecast NMA said 1.16 billion tons of production is possible across the coal mining sector in the US in 2008, topping 1.147Bt mined in 2007.

"US coal production in 2008 will be near the record set in 2006, defying a slowing economy," the group announced in a briefing held at its Washington, DC headquarters on Tuesday, a record for which the nation is just 2Mt shy given current-year estimates.

Demand on the nation's reserve base, it added, will also be at unprecedented levels.

NMA president Kraig Naasz cited "powerful underlying conditions" that they believe are sending coal demand on the upward trend.

"The abundance of these commodities (coal and minerals) in the United States makes them especially valuable in a global economy driven by strong growth in large, rapidly developing countries."

One downside to the group's forecast is its projected eastern US production for 2008, which is estimated to be flat at about 480Mt. Western production, however, will likely increase to 680Mt, or 2.1% over last year.

Demand, according to the report, is projected to reach a record 1.209Bt, a jump over 2007's 1.194Bt. The increased demand will be aided by its estimated increase in electricity demand of about 1.3 to 1.7%.

Exports will also remain strong, with the NMA estimating 64Mt will leave the nation's shores in the coming year. That range is conservative, it noted, especially in the million high-grade met coal arena.

"Coal imports will remain flat at 36.5 million tons in 2008 after rising sharply over recent years," NMA added.

At the same time, power generation inventories will see two years of build-ups peak, with prime levels being reached.

"Last year the nation had more coal-based power plant capacity than in any year in this decade," Naasz said, adding that two coal-fired plants are due to come online in 2008 following three that went live in 2007.

"In addition, another 24 coal-based plants are under construction, and as of October 2007, there were an additional 10GW of coal-based plants or units near construction or are already in the permit phase, ensuring coal will maintain its current 50 percent share of the growing market for electricity generation."

The yearly outlook is based on the input and data from the NMA's member companies.