The Coal Producer Survey, released Tuesday, found 53% of respondents expected 2006 production to better the 1.13 billion ton record set last year, while 28% of respondents expect level production and none foresaw a reduction.
The survey charted the top 40 coal companies by production and share of domestic market and Peabody Energy once again topped the list as the largest domestic producer, with 206.8 million tons in 2005, some 18.2% of total US coal production.
Arch Coal was the second largest producer with 129.7Mt in 2005, with 11.4% of the market.
Rounding out the top five producers were the Kennecott Energy Company, now known as Rio Tinto, followed by Consol Energy and Foundation Coal.
NMA president and CEO Kraig Naasz said the findings reflected the continuing importance of coal for a steadily growing, technology-driven economy.
“Last year’s record production marked an increase of 21.2 million short tons over 2004 and 5.6Mt higher than the previous record set in 2001,” he said.
Consumption of US coal also set a record in 2005 – the 1.12 billion tons consumed was 1.9% more than 2004, with 92% going to electricity generation.
Coal maintained its 50% share of the electricity generation market in 2005, fuelling a record 2.01 billion KWh, an increase of 1.8% over the previous year.
Exports climbed by nearly 2Mt in 2005 to almost 50Mt, a 4% increase over 2004.
International demand for coking coal used in steel manufacturing again drove export demand, as metallurgical coal prices soared by 28%. Strong demand from Europe more than offset modest declines from Asia.
In 2005, 493.5Mt were mined east of the Mississippi River, accounting for 43.5% of total coal production, an increase of 1.9% over 2004.
West Virginia, Kentucky, Ohio, Illinois and Pennsylvania led the eastern US in production increases.
Western production of 639.7Mt, led by Wyoming, accounted for 56.5% of US coal production.
Production in New Mexico, Utah, Montana and Texas also increased over 2004 levels.
Coal industry sales, acquisitions and reorganisations were somewhat less active in 2005 than in the last few years.
Arch Coal sold its Hobet Mining, Apogee Coal and Catenary Coal subsidiaries to Magnum Coal Company, effective December 31, 2005.
International Coal completed the purchase of Cambrian Mining’s final shares in King Coal Corporation and Maple Coal in December 2005.
International Coal acquired Anker Coal in October 2005, and began publicly trading in November 2005.
After acquiring Triad Mining in May 2005, James River Coal became a publicly traded company in November 2005.
The survey also confirmed the ageing workforce in the nation’s coal mines. The average age of America’s coal miners, between 40 and 45 years of age, underscores the industry’s concern that the majority of its workforce is rapidly reaching retirement age and must be replaced.
Industry sources estimate that about 50,000 new coal miners will be needed in the next five years to replace those retiring and to provide manpower needed for projected increases in coal production.
The US has a quarter of the world’s coal reserves, the largest of any country, capable of supplying US needs for electricity generation, industrial and other uses for about 240 years at current rates.
