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COAL COST GUIDE

A Subscription Cost Data Service

Jennifer B. Leinart
Publisher

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COAL COST GUIDE - TABLE OF CONTENTS

CONTENTS / INTRODUCTION United States


Table 8. Wage and Benefit Summary -
CM COST MODELS Underground Coal Mines,
Introduction Western U.S.
Surface Coal Cost Models Selected Coal Mine Wage Scales and Benefit
Underground Coal Cost Models Plans Grouped by State
Raw Coal Receiving and Storage Cost Models
Coal Preparation Plant Cost Models (Heave Media) EQ EQUIPMENT
Clean Coal Storing, Drying, Unit-train Loading Introduction
and Refuse Disposal Cost Models Surface Mining Equipment
Underground Mining Equipment
CI COST INDEXES AND COAL PRICES Milling Equipment
Coal Cost Index Names and Uses Miscellaneous Equipment
Coal Mining and Processing Cost Indexes Appendix:
Consumer Price Indexes (U.S. & Canada) Equipment Specifications and Productivity
and Producer Price Index (U.S.) Underground Mining Equipment
Coal Cost Guide (CCG) Indexes - Canada Milling Equipment
Coal Cost Guide (CCG) Indexes - U.S. Miscellaneous Equipment

LA LABOR SU SUPPLIES & MISCELLANEOUS ITEMS


Canada Introduction
Introduction Supply and Miscellaneous Item Prices
Employment Taxes Environmental / Reclamation Supplies
Mine Wage & Benefits Survey Health and Safety Supplies
Table 1: Workers' Compensation Rates
Table 2: Provincial Health Plans - Funding TA TAXES
Table 3: Benchmark Hourly Wages - Canada
Surface and Underground Mines Introduction
Table 4: Benchmark Hourly Wages - Canada Federal Taxes
Union vs. Non-union Mines Provincial Taxes
Table 5: Benefit Summary United States
Selected Mine Wage Scales and Benefit Plans for Introduction
Individual Mines Grouped by Providence - State Mining Taxes - By State
Canada Appendix:
U.S. Federal Income Taxes as Applied to Mining
United States
Introduction EP ELECTRIC POWER
Federal Employment Taxes Canada
State Employment Taxes Introduction
Mine Wage & Benefits Survey Service Area Map
Table 1: State Unemployment Insurance Rates Rate Schedule Summaries
Table 2: State Worker’s Compensation Rates United States
Table 3: U.S. Coal Mine Labor Survey Introduction
Table 4: Average Benchmark Hourly Wages - Rate Schedule Summaries
Small Mines vs. Large Mines Estimator's Guide to Industrial
Table 5: Wage and Benefit Summary - Electric Power Rates
Surface Coal Mines, Eastern U.S.
Table 6: Wage and Benefit Summary -
Surface Coal Mines, Western U.S.
Table 7. Wage and Benefit Summary -
Underground Coal Mines,
Eastern U.S.

LA LABOR (continued)
Copyright© 2011 InfoMine USA, Inc.
COAL COST GUIDE - TABLE OF CONTENTS

NG NATURAL GAS MI MISCELLANEOUS


Canada DEVELOPMENT SERIES
Introduction Article 1
National Pipelines Map “The Cost of Site Preparation”
Rate Schedule Summaries - By Province Article 2
United States “The Cost of Sinking Shafts”
Introduction Article 3
Rate Schedule Summaries - U.S. “The Cost of Driving Raises”
Article 4
TR TRANSPORTATION “The Cost of Driving Drifts and Ramps”
Introduction Article 5
Shipping Mine Products by Truck “The Cost of Constructing Mine Buildings
Shipping Mine Products by Rail Article 6
Ocean Transportation of Mineral Products “The Costs of Re-contouring

ADVISOR GROUP

Copyright© 2011 InfoMine USA, Inc.


Coal Cost Guide
Introduction
Compiled by David Boleneus

Welcome to Coal Cost Guide.


Our intent is that Coal Cost Guide will serve as your source for cost estimating and related data for the coal
mining industry in North America. It provides necessary information for coal mining, whether surface, longwall
or continuous miner operations, and coal processing, including heavy-media plants. The following sections in
the Coal Cost Guide are arranged to meet this purpose.

The Introduction contains discussions about coal rank, historical coal production for states and provinces of
North America (Canada, the United States, and Mexico), geographic distribution of coal fields of North America
followed by factual information on energy consumption, world reserve, coal-fired electrical generation, and
other topics relevant to coal.

The Cost Models section provides up-to-date capital and operating cost data for surface coal mining,
underground longwall and continuous miner operations, heavy-media coal processing, raw coal handling, and
clean coal handling and loading. Each cost model is presented at several rates of throughput to facilitate a wide
range of cost estimating tasks.

Cost Indexes and Coal Prices provides several cost indexing tables so users may update equipment, labor,
supply, transportation, or other costs. Users can consult either the historical prices of coal or producer and
consumer price indexes. The widely-used Coal Cost Guide’s (CCG) capital and operating cost indexes provide
a quick method to update your mine and plant costs. Other MCS capital and operating cost indexes address
costs unique to the metal mining and aggregate quarrying industries.

The Labor section summarizes current wage, salary, and benefit surveys for the coal mining industry in the
United States and Canada. It is based upon surveys conducted each year.

Two sections, Equipment and Supplies, provide costs of thousands of types and sizes of equipment, supplies,
and miscellaneous items used in coal mining and processing operations.

The Tax section provides up-to-date tax rates for each coal-producing province and state within Canada and the
United States in addition to discussing method for calculating taxes.

The sections on Electric Power and Natural Gas provide current utility rates from providers of these services
in coal producing areas of Canada and the United States.

The Transportation section includes discussions of current practices and rates for truck, rail, and ocean
transport.

The Advisor Group is a buyer’s guide to link users with equipment manufactures and suppliers having special
knowledge to answer your equipment and supply questions.

The Development Series provides detailed cost information about specific cost estimating topics. Included are
costs of site preparation, sinking shafts and driving raises, drifts, and ramps.

InfoMine USA Inc. strives to provide useful products for your cost estimating needs. We welcome your
suggestions for improvements, corrections and new ideas.

Introduction
Copyright © 2011 InfoMine USA, Inc. COAL COST GUIDE 1
Released in 2010—Coal Poster Map for North America (folded insert)

In January 2010 and December 2010, InfoMine Inc. released three new products that concern North
American coal. These are two poster maps and a digital database of major coal mines and coal-fired electric
generating power plants operating in 2009 in North America. They are available at
http://www.infomine.com/maps/posters/northamericacoal/

The poster maps locate 24 coal mines in Canada, 20 coal mines in Mexico, and 1,064 coal mines in the
United States. Mines producing more than 500,000 metric tons of coal in 2009 are identified by mine name
on the poster map.

The Infomine website http://www.infomine.com also links to other relevant summary data on
Company/Property Mine and a Property Satellite Image via Google Earth. Subscribers can access additional
data about properties including a summary, location, property map, ownership, reserves, production, and
other information.

In addition to data available with the poster map, digital data bases provide supplementary information
compiled about coal mines in the United States, as follows:

• Mine ID • Mine type • Latitude • Longitude


• Type coal • County • State • Seam thickness
• Tons produced (Jan.-June 2009) • Employee hours • Productivity (tph)

The digital database available for power plants in the U.S. contains the following information:

• Plant ID • County • Latitude • Longitude


• State • Company • Plant name
• Nameplate capacity (in megawatts)

The digital databases are planned for release soon.

Introduction
2 COAL COST GUIDE Copyright © 2011 InfoMine USA, Inc.
AN OVERVIEW OF COAL RESOURCES
AND USES IN NORTH AMERICA

1120 N. Mullan Road, Suite 100


Spokane Valley, Washington 99206 USA
Phone (509) 328-8023 • Fax (509) 328-2028
Email: info@infomine.com
Website: www.costmine.com

Introduction
Copyright © 2011 InfoMine USA, Inc. COAL COST GUIDE 3
CONTENTS
PAGE
CONTENTS........................................................................................................................... 4
SUMMARY ............................................................................................................................ 6
COALIFICATION AND RANK .............................................................................................. 7
COAL PRODUCTION IN NORTH AMERICA ....................................................................... 8
Canada ............................................................................................................................................8
United States .................................................................................................................................10
Mexico ...........................................................................................................................................17
COAL FIELDS IN NORTH AMERICA................................................................................. 19
Coal Fields in Canada ...................................................................................................................20
British Columbia.........................................................................................................................20
Alberta .......................................................................................................................................21
Saskatchewan ...........................................................................................................................21
Nunavut Territory .......................................................................................................................21
Yukon Territory ..........................................................................................................................21
Northwest Territories .................................................................................................................21
New Brunswick ..........................................................................................................................21
Nova Scotia ...............................................................................................................................21
Coal Fields in United States ..........................................................................................................22
Appalachian Basin .....................................................................................................................23
Illinois Basin...............................................................................................................................24
Michigan Basin ..........................................................................................................................25
Gulf Coast Region .....................................................................................................................25
Northern Great Plains Region....................................................................................................26
Mid-Continent Region ................................................................................................................27
Rocky Mountains and Colorado Plateau Region .......................................................................27
West Coast Coal Fields .............................................................................................................28
Georgia and South Dakota ........................................................................................................29
Coal Fields in Mexico.....................................................................................................................29
Coahuila.....................................................................................................................................30
Oaxaca, Guerrero, and Puebla ..................................................................................................31
Sonora .......................................................................................................................................31
Chihuahua .................................................................................................................................31
GLOBAL COAL RESOURCE AND USE ............................................................................ 32
Consumption..................................................................................................................................32
Reserve .........................................................................................................................................33
Generation of Electricity from Coal ................................................................................................34
Coal Conversion and Energy Demand for Coal.............................................................................36
Coal-Fired Power Plant Efficiencies ..............................................................................................37
OTHER ENERGY RESOURCES ........................................................................................ 38
Crude Oil and Natural Gas Liquids ................................................................................................38
APPENDIX 1 ....................................................................................................................... 41

Introduction
4 COAL COST GUIDE Copyright © 2011 InfoMine USA, Inc.
CONTENTS
PAGE
--TABLES--

Table 1. Historical coal and coke production for Canada, 1980-present ...........................................9
Table 2. Historical coal production for the United States, 1930-present..........................................12
Table 3. Historical coal production reported in Mexico and Sonora State .......................................18
Table 4. Coal reserves and/or resources in North America.............................................................19
Table 5. Coal resource in Coahuila state of Mexico ........................................................................31
Table 6. Net electrical power generation, 2009 ...............................................................................34
Table 7. Standard classification of coals by rank (A.S.T.M. D388 – 05) ........................................41

--ILLUSTRATIONS--

Figure 1. Canadian coal production by rank, 1980-present.............................................................8


Figure 2. U.S. coal production by rank, 1949-present ...................................................................10
Figure 3. Comparison of U.S. surface and underground coal mine production in 2007 ................11
Figure 4. Coal fields and oil sand deposits of Canada ..................................................................20
Figure 5. Coal fields in conterminous United States......................................................................22
Figure 6. Coal fields in Alaska .......................................................................................................29
Figure 7. Coal fields in Mexico.......................................................................................................30
Figure 8. World energy consumption in 2009 ................................................................................32
Figure 9. Global proven recoverable coal reserves .......................................................................33
Figure 10. Sources of fuel for electrical generation .........................................................................35
Figure 11. Quantity of power generated by coal in U.S. ..................................................................36
Figure 12. Cost of electricity comparison.........................................................................................37
Figure 13. Distribution of the estimated ultimate recovery of conventional crude oil in 2005 ..........39
Figure 14. Chart showing world oil reserve (bar symbol), production (shaded symbol), and
year-to-year net reserve growth (open circle cymbol) ....................................................40

Introduction
Copyright © 2011 InfoMine USA, Inc. COAL COST GUIDE 5
SUMMARY

Although the Hopi Indians in Arizona used coal in pottery-making for seven hundred years, the earliest written
evidence of coal mining in North America dates from 1672 at Cape Breton Island in Nova Scotia. At Cape
Breton, coal visibly outcrops in thick seams along the sea coast so its location facilitated its export. Britain had
been using coal since the Industrial Revolution, but the coal trade grew in the latter half of the 1500s as did its
coal shipping fleet because of London’s growing dependence on coal. In the American colonies, the
government purchased the Pennsylvania anthracite region from the Iroquois in 1749 and in West Virginia a
British company opened a mine in 1750, yet Atlantic coastal cities continued to import coal from Nova Scotia.
Anthracite (or “hard coal”), clean and smokeless, became the preferred fuel in cities, replacing wood by about
1850. Bituminous (or “soft coal”) mining came later. Following the opening of coal fields in Pennsylvania,
new soft coal fields also opened in Ohio, Indiana and Illinois, as well as Kentucky and Alabama. In the mid-
century, Pittsburgh was the principal market but by 1830 it became the steam capital of the western hemisphere.
After 1850, soft coal, which is cheaper but dirtier, became widely used for railway locomotives and stationary
steam engines, and was also used to make coke for steel after 18701.

Total coal output in United States and Canada soared, doubling every ten years until 1890. Production ranged
from 8.4 million short tons in 1850 to 40 million tons in 1870, to 270 million tons in 1900, and peaking at 680
million short tons in 1918. In the peak year, there were 180,000 anthracite miners; by 1970 only 6,000
remained. The period of 1910 to 1920 saw the start of the change from coal to oil as railroad locomotives came
to rely more on fuel oil. Steam engines were replaced in factories, and bituminous coal was used primarily for
the generation of electricity. The Great Depression of the 1930s lowered the demand to 360 million short tons
in 19322. Employment in bituminous coal mines peaked at 705,000 men in 1923, falling to 140,000 by 1970
and 70,000 in 2003.

World energy consumption annually in the world was an enormous 11,163 million oil equivalent (MMOE)
tonnes3 in 2009. About 28 percent of this amount is supplied by coal, or 3,278 MMOE tonnes in 2009. The
U.S. share of this amount is about 498 MMOE tonnes, about 747 million tonnes of hard coal on an equivalent
basis4. For comparison, the energy consumed from all renewable energy sources in 2009—geothermal, wind,
ethanol, solar and wood debris—was about 25 MMOE tonnes5, 15 percent increase since 2007.

In 2009, Canada had 26 active coal mines in five provinces, the U.S. had 1,37561 mines in 27 states, and
Mexico had 9 active mines in Coahuila State. Currently, Alberta and British Columbia are the largest coal
producing provinces in Canada. Most mines in the U.S. are in Kentucky and West Virginia although the two
largest mines in the U.S. are located in Wyoming each produced more than 73 million tonnes in 2009.
Wyoming produced 40 percent of the U.S. coal in 2010, or 404 million tonnes with nearly all of the production
shipped to other states. States receiving 74 percent of Wyoming coal, in decreasing order, are Texas, Illinois,
Missouri, Oklahoma, Iowa, Wisconsin, Nebraska and Indiana. Together, Texas, Indiana, Ohio, and
Pennsylvania in 2008 accounted for more than 26 percent of all coal-fired electric power consumed in the U.S.,
amounting to more than 517 million megawatt-hours of electrical generation. Twenty-two states located in the
Midwest, South, and Eastern U. S. consumed more than 60 percent of all coal-fired electrical power generated in
the U.S. in 2009, an amount equal to 27 percent of all electrical power generated by all sources (EIA, 2010).

Coal field resources in Canada and United States are an enormous 2 trillion tonnes with a proven reserve
exceeding 0.2 trillion tonnes. The largest Canadian reserve is in Alberta. In the United States, the largest
reserve is located in the Northern Great Plains region and northern and central Appalachian regions. Additional

1
Freese, B., 2003, Coal, a human history: Da Capo Press, 308 pp.
2
Bruce C. Netschert and Sam H. Schurr, Energy in the American Economy, 1850-1975: An Economic Study of Its History and Prospects. Pp 60-62
3
One oil equivalent tonne about equals two tonnes of bituminous coal.
4
BP Statistical review of world energy, 2010
5
http://www.ea.doc.gov/alternate...
Introduction
6 COAL COST GUIDE Copyright © 2011 InfoMine USA, Inc.
large resources are also recognized in the far north of Canada and Alaska. Coals of the Northern Great Plains
and Alberta Plains are Middle Tertiary in age while coals in the northern and central Appalachians are
Pennsylvanian age coals.

Coal-to-gas conversion has made in-roads since constructing the Great Plains Synfuel plant in North Dakota.
From 16,000 tonnes of lignite per day, this plant produces 130 million cu ft (3.68 million cu m) of natural gas,
1,090 tonnes of anhydrous ammonia fertilizer, and 4,900 tonnes of carbon dioxide. The CO2 is moved by
pipeline to oil fields in North Dakota and Saskatchewan where it is a boon to both industries because its use in
these nearby oil fields significantly increases the ultimate recovery of oil compared to the recovery possible by
conventional primary and secondary recovery methods.

COALIFICATION AND RANK

Coalification is the alteration of vegetation to form peat, succeeded in a stage-by-stage transformation of peat
through lignite, subbituminous, bituminous, semi-anthracite, to anthracite and meta-anthracite coal. The degree
of coalification is termed the coal rank. The coal rank advances with increasing degree of coalification. Stages
of development from peat to higher rank are fermentation, concentration of resistant substances to form peat,
dehydration and compaction to form lignite and subbituminous coal. Subbituminous coal then undergoes
bituminization by generation and entrapment of hydrocarbons to form subbituminous A to high volatile
bituminous coals. Rank further increases through debituminization to form low volatile bituminous coal by
cracking and expulsion of low molecular weight hydrocarbons, especially methane. Coalification increases
more by metamorphism and graphitization to create semi-anthracite, anthracite, meta-anthracite rank coals, and
eventually, to graphite by continued loss of hydrogen and nitrogen and enrichment of carbon6. Waxy or algal
coals follow a path of coalification predominated by loss of hydrogen due to their initially low oxygen content.
Woody or cellulosic coals follow a path of coalification predominated by loss of a significant amount of oxygen
and to a lesser degree also the loss of hydrogen. Along both coalification paths coal materials of all maceral
groups, exinite, inertinite, and huminite (vitrinite), undergo enrichment in carbon.

Rank and quality of coal can be determined from physical or chemical testing in the laboratory. The favored
method for determination of rank, in common use in the oil and gas industry although rarely used in the coal
mining industry, is by measuring the change in the optical property of vitrinite by light microscopy. The
vitrinite maceral exhibits a well defined increase in its reflectance of light with increase in rank from 0.47
percent reflectance for subbituminous to >3.0 percent for anthracite coal.

Chemical properties or measures of quality of coal by the coal industry are by proximate analysis, ultimate
analysis, and other physical tests of the coal. Ultimate analysis provides measures of carbon, hydrogen, sulfur,
oxygen, carbon dioxide, chlorine, and phosphorous. Physical tests may include float-sink washability, hardness,
hardgrove grindability index, density, abrasion, and particle size. Proximate analysis is the common method to
determine coal quality. This analysis measures the content of moisture, ash, mineral material, fixed carbon
(FC), volatile matter (VM), and calorific value (CV). Of most importance is knowing the basis on which the
proximate analysis is reported as there are five methods of presenting the analysis: as-received basis, air-dried
basis, dry basis, dry, ash-free basis, and dry, mineral-matter-free basis. Although the laboratory analyses are
often completed on an as-received basis, the contents of FC, VM, and CV are mathematically corrected using
known formulas to remove other components so the FC-VM components may be reported on a dry, ash- and
mineral-matter-free basis, and the CV is reported on a moist, mineral-matter free basis, according to the
American Society of Testing Materials (ASTM) D-388-05 method in current use. (See table 6, Appendix 1).
The various tests involving the proximate analysis, calorific and other determinations are also conducted under a
variety of A.S.T.M. standard laboratory tests.

6
Thomas, L., Coal Geology: John Wiley and Sons
Introduction
Copyright © 2011 InfoMine USA, Inc. COAL COST GUIDE 7
COAL PRODUCTION IN NORTH AMERICA

This section provides a general overview of coal production in Canada, the United States, and Mexico.

Canada

In 2008, Canada ranked as the 15th largest coal producer in the world. Canada’s production by rank of its coal7
from 1980 to present is shown in Figure 1. Coal produced was lignite, subbituminous, and bituminous. No
anthracite was produced. The quantity of coal used for steam generation is about equal to that for metallurgical
uses. However, exports account for approximately 80 percent of Canadian metallurgical coal and 2 percent of
steam coal. About 37 percent of Canadian coal is metallurgical grade produced in Alberta and British
Columbia. British Columbia had the largest number of active mines of all Canadian provinces at 10, Alberta
had 8 active mines, Saskatchewan had 3 active mines and New Brunswick and Nova Scotia each had one active
mine8. Reporting of coal mined in Nova Scotia and New Brunswick has been withheld in recent years to protect
company-confidential coal production data. Coal production for these five Canadian provinces for years 1980 to
present is shown in Table 1. In order of decreasing tonnage produced, these provinces are Alberta, British
Columbia, Saskatchewan, Nova Scotia, and New Brunswick.

Figure 1. Canadian coal production by rank, 1980-present


Data withheld for Nova Scotia and New Brunswick 2003 – 2010

7
Statistics Canada, 2008, 2009
8
Canadian Minerals Handbook, 2006;coal in Canada 2009 (Natural Resources Canada)
Introduction
8 COAL COST GUIDE Copyright © 2011 InfoMine USA, Inc.
Table 1. Historical coal and coke production for Canada, 1980-present

Nova Scotia
British Nova New New Brunswick
Year Alberta Columbia Saskatchewan Scotia Brunswick Combined
[W-confidential data withheld] (tonnes x 1,000)

1980 17,396 10,156 5,971 2,725 440


1981 18,445 11,782 6,797 2,536 522
1982 20,001 11,769 7,493 3,051 497
1983 21,879 11,717 7,759 2,985 566
1984 23,052 20,771 9,916 3,095 567
1985 24,715 22,993 9,676 2,738 559
1986 24,754 20,361 8,281 2,624 488
1987 25,744 21,990 10,019 2,925 534
1988 29,467 24,942 12,151 3,504 543
1989 30,823 24,800 10,817 3,515 520
1990 30,528 24,557 9,406 3,415 548
1991 32,553 24,965 8,980 4,138 498
1992 33,527 17,173 10,027 4,488 399
1993 34,319 20,633 10,046 3,648 391
1994 35,684 22,583 10,686 3,508 331
1995 37,145 24,350 10,740 2,483 263
1996 36,150 25,422 10,838 3,172 272
1997 36,343 27,876 11,653 2,717 174
1998 36,158 24,868 11,791 2,119 273
1999 34,203 24,845 11,659 1,536 251
2000 30,899 25,682 11,190 1,165 229
2001 30,912 27,006 11,390 881 165
2002 30,485 24,397 5,704* 128* 174
2003 28,229 23,073 W* W 143
2004 27,285 27,313 11,586 W W
2005 29,636 26,718 11,017 W W
2006 32,293 23,161 10,440 W W
2007 32,732 25,941 10,541 W W
2008 31,604 26,162 9,920 W W 63

2009 31,031 21,195 10,550 W W 160

2010 (Jan. – Sept.) 23,457 19,790 7,588 W W 0

Total 911,449 688,991 294,632 63,096 9,347 ---

Statistics Canada. Table 303-0016 - Coal and coke statistics, CANSIM database through 2007. Table 135-0002
Production and exports for coal (CANSIM database) 2008 – 2010.

*Certain subbituminous and lignite data withheld for July 2002-December 2003

Introduction
Copyright © 2011 InfoMine USA, Inc. COAL COST GUIDE 9
United States

In 2009, the United States ranked as the 2nd largest coal producer in the world following China9. The quantities
of lignite and subbituminous coals produced increased dramatically starting in 1969 while the tonnage of
anthracite, produced only in Pennsylvania, has diminished. The amount of bituminous coals produced during
this time did not vary significantly.

The historic production of coal from each state from 1930 to present is listed in Table 2. Twenty-six states
recorded coal production in 2009 totaling 1,073 million short tons (973 million tonnes). The largest producer of
coal in 2009 was Wyoming with 445.5 million short tons (404.2 million tonnes) followed by West Virginia,
Kentucky, Pennsylvania, Montana, and Texas10. Only four states with past production do not currently produce
coal: California, Iowa, Michigan, and Washington. The number of surface and underground mines in the United
States is compared by several size categories

Figure 2. U.S. coal production by rank, 1949-present

9
Energy Information Agency, 2008
10
Mine Safety and Health Administration, 2008
Introduction
10 COAL COST GUIDE Copyright © 2011 InfoMine USA, Inc.
There were 802 surface mines and 559 underground mines. The median size surface mine produced 74,200
short tons (67,450 tonnes) and the median size underground mine produced 178,000 short tons (161,500 tonnes)
of coal.

120

100

Surface mines
80
Underground mines
N umber of Mines

60

40

20

0
1,000

5,000

10,000

20,000

50,000

100,000

250,000

500,000

1,000,000

5,000,000

10,000,000

20,000,000

50,000,000

92,000,000
Short Tons

Figure 3. Comparison of U.S. surface and underground coal mine production in 2007

Introduction
Copyright © 2011 InfoMine USA, Inc. COAL COST GUIDE 11
Table 2. Historical coal production for the United States, 1930-present
(1,000s tonnes)

Year Alabama Alaska Arizona Arkansas California Colorado Illinois Indiana Iowa Kansas Kentucky
1930 14,125 109 8 1,391 0 7,436 48,744 14,960 3,532 2,204 46,457
1931 10,885 96 6 1,047 0 5,991 40,191 12,968 3,074 1,803 36,255
1932 7,128 93 6 937 0 5,079 30,368 12,087 3,504 1,772 32,024
1933 7,947 88 9 801 0 4,745 33,941 12,484 2,898 2,012 32,750
1934 8,294 98 8 777 0 4,727 37,442 13,421 3,055 2,275 34,950
1935 7,715 108 6 1,028 0 5,362 40,393 14,292 3,311 2,437 36,978
1936 11,094 124 5 1,472 0 6,180 46,201 16,169 3,593 2,671 43,112
1937 11,286 119 6 1,371 0 6,520 46,813 16,116 3,299 2,625 42,716
1938 10,035 140 5 1,086 0 5,137 38,022 13,388 2,815 2,408 34,968
1939 10,929 135 7 1,045 0 5,373 42,441 15,371 2,674 2,427 38,607
1940 13,902 158 6 1,319 0 5,978 45,913 17,118 2,931 3,247 44,580
1941 14,029 217 10 1,428 0 6,304 49,626 20,397 2,666 3,636 48,725
1942 17,510 237 10 1,801 0 7,336 59,032 23,032 2,674 3,837 56,456
1943 15,568 262 10 1,559 0 7,551 65,890 22,739 2,514 3,118 57,345
1944 17,012 316 5 1,789 0 7,410 69,664 25,367 1,942 3,056 64,734
1945 16,544 270 4 1,682 0 6,914 66,235 22,846 1,856 2,929 63,134
1946 14,681 333 5 1,480 0 5,365 57,579 19,683 1,622 2,262 60,376
1947 17,280 328 9 1,697 0 5,768 61,562 23,087 1,528 2,490 71,804
1948 17,056 370 0 1,508 0 5,108 59,278 21,636 1,515 2,302 74,466
1949 11,733 393 0 873 0 4,206 42,827 15,014 1,564 1,843 56,775
1950 13,083 374 0 1,061 0 3,864 51,067 18,105 1,716 1,928 71,211
1951 12,335 448 0 1,004 0 3,722 49,170 17,645 1,479 1,779 68,014
1952 10,327 623 0 792 0 3,287 41,540 14,833 1,253 1,841 59,978
1953 11,369 782 0 703 0 3,243 41,740 14,345 1,259 1,556 59,022
1954 9,328 605 10 433 0 2,631 38,076 12,156 1,086 1,245 51,677
1955 11,874 580 8 524 0 3,237 41,669 14,650 1,141 673 62,615
1956 11,488 659 9 535 0 3,177 43,638 15,503 1,232 802 67,636
1957 12,029 764 8 461 0 3,260 42,632 14,371 1,190 679 67,737
1958 10,144 689 7 330 0 2,698 39,837 13,628 1,070 747 60,158
1959 10,838 599 6 400 0 2,988 41,246 13,430 1,070 700 56,981
1960 11,803 655 5 371 0 3,272 41,710 14,096 969 806 60,642
1961 11,717 668 0 358 0 3,337 41,047 13,704 841 602 57,182
1962 11,684 791 0 232 0 3,065 43,987 14,251 1,025 830 62,789
1963 11,212 774 0 200 0 3,348 46,935 13,699 1,100 1,061 70,171
1964 13,096 676 0 192 0 3,951 49,917 13,676 883 1,146 75,068
1965 13,455 810 0 205 0 4,345 53,055 14,120 946 1,188 77,806
1966 12,899 841 0 214 0 4,737 57,671 15,718 930 1,018 84,511
1967 14,049 839 1 171 0 4,934 59,088 17,030 801 1,031 90,986
1968 14,914 680 0 191 0 5,042 56,646 16,770 795 1,150 91,768
1969 15,836 605 0 207 0 5,017 58,715 18,222 819 1,191 98,929
1970 18,652 498 120 243 0 5,466 59,076 20,197 895 1,476 113,676
1971 16,280 633 1,040 250 0 4,842 52,982 19,410 852 1,044 108,309
1972 18,883 606 2,680 388 0 5,010 59,442 23,541 772 1,113 109,940
1973 17,445 630 2,946 394 0 5,655 55,858 22,909 545 985 115,799
1974 17,984 635 5,850 413 0 6,256 52,812 21,524 535 651 124,464
1975 20,543 695 6,338 443 0 7,456 54,012 22,792 564 435 130,285
1976 19,538 640 9,453 484 0 8,561 52,834 23,015 559 535 130,611
1977 19,545 640 10,033 511 0 10,876 48,529 25,217 465 814 132,688
(Chou, EIA, 2008)

(continued next page)

Introduction
12 COAL COST GUIDE Copyright © 2011 InfoMine USA, Inc.
Table 2: Historical coal production for the United States, 1930-present (continued)
(1,000s tonnes)

Year Alabama Alaska Arizona Arkansas California Colorado Illinois Indiana Iowa Kansas Kentucky
1978 18,646 663 8,214 471 0 12,532 44,090 21,938 408 1,112 123,096
1979 21,932 716 10,332 228 0 16,775 54,050 24,939 578 731 132,947
1980 23,953 718 9,893 289 0 17,097 56,739 28,008 507 764 136,210
1981 22,196 733 10,532 208 0 18,050 47,052 26,593 650 1,235 142,937
1982 24,091 756 11,217 146 0 16,618 54,681 28,815 513 1,281 136,274
1983 21,602 713 10,346 80 0 15,179 51,570 28,881 349 1,153 119,039
1984 24,574 778 10,453 74 0 16,300 57,851 34,070 478 1,205 144,735
1985 25,217 1,300 8,732 73 64 15,643 53,707 30,224 536 902 138,140
1986 23,429 1,424 10,484 152 0 13,823 56,124 29,803 439 1,348 139,647
1987 23,170 1,354 10,323 76 42 13,082 53,665 31,033 425 1,833 149,861
1988 23,493 1,583 11,247 263 49 14,374 53,598 28,634 307 678 143,563
1989 25,394 1,435 10,827 64 37 15,534 53,767 30,519 390 777 151,854
1990 26,336 1,548 10,255 54 55 17,155 54,788 32,575 346 654 157,237
1991 24,738 1,303 11,978 47 52 16,179 54,666 28,548 312 377 144,226
1992 23,402 1,392 11,351 53 93 17,442 54,302 27,639 262 329 146,120
1993 22,469 1,452 11,043 40 0 19,855 37,284 26,576 159 309 141,794
1994 21,107 1,422 11,844 46 0 22,956 47,897 28,057 42 258 146,641
1995 22,353 1,540 10,838 26 0 23,324 43,709 23,593 0 259 139,471
1996 22,351 1,344 9,473 19 0 22,576 42,326 26,916 0 210 138,279
1997 22,197 1,315 10,635 16 0 24,902 37,339 32,203 0 327 141,389
1998 20,877 1,219 10,265 22 0 26,881 36,045 33,387 0 309 136,347
1999 17,694 1,420 10,693 20 0 27,206 36,666 30,885 0 371 126,668
2000 17,531 1,489 11,894 11 0 26,433 30,340 25,370 0 182 118,559
2001 17,567 1,373 12,173 13 0 30,275 30,648 33,328 0 160 121,413
2002 17,174 1,040 11,616 13 0 31,845 30,222 32,058 0 186 112,621
2003 18,251 981 10,940 7 0 32,506 28,704 32,074 0 140 102,223
2004 20,204 1,372 11,549 6 0 36,170 28,897 31,852 0 64 103,641
2005 19,359 1,319 10,952 3 0 34,936 29,043 31,259 0 155 108,622
2006 17,082 1,293 7,454 21 0 32,951 29,692 31,860 0 386 109,633
2007 17,710 1,201 7,242 75 0 33,007 29,808 31,755 0 381 104,808
2008 18,698 1,340 7,280 63 0 29,056 29,863 32,562 0 208 109,156
2009 17,052 1,687 6,780 5 0 25,644 30,616 32,346 0 168 97,376
2010 19,058 1,792 6,634 9 0 22,951 30,279 31,890 0 120 96,950

1930-2010 1,348,678 63,448 374,130 40,495 393 985,025 3,767,322 1,811,309 86,063 98,951 7,601,364

(Chou, EIA, 2008)

Introduction
Copyright © 2011 InfoMine USA, Inc. COAL COST GUIDE 13
Table 2: Historical coal production for the United States, 1930-present
(1,000s tonnes)
New North
Year Louisiana Maryland Mississippi Missouri Montana Mexico Dakota Ohio Oklahoma Pennsylvania
1930 0 2,060 0 3,495 2,742 1,786 1,542 20,459 2,535 175,858
1931 0 1,820 0 3,284 2,157 1,409 1,378 18,517 1,731 142,706
1932 0 1,296 0 3,692 1,928 1,146 1,579 12,618 1,139 113,065
1933 0 1,389 0 3,114 1,952 1,112 1,617 17,771 1,123 116,880
1934 0 1,476 0 3,041 2,328 1,142 1,591 18,771 1,096 133,352
1935 0 1,522 0 3,308 2,503 1,260 1,774 19,190 1,115 130,240
1936 0 1,546 0 3,615 2,712 1,449 2,009 21,872 1,397 149,203
1937 0 1,405 0 3,712 2,690 1,556 2,042 22,841 1,452 147,744
1938 0 1,162 0 3,117 2,478 1,124 1,860 16,866 1,129 112,314
1939 0 1,309 0 2,970 2,544 1,116 1,880 18,407 1,077 130,701
1940 0 1,364 0 2,809 2,601 1,008 2,012 20,659 1,493 152,488
1941 0 1,543 0 2,853 2,952 1,135 2,095 26,598 1,607 169,290
1942 0 1,815 0 3,193 3,474 1,514 2,302 29,723 2,166 185,431
1943 0 1,754 0 3,910 4,384 1,679 2,268 29,262 2,574 182,976
1944 0 1,697 0 4,335 4,394 1,582 2,146 30,733 2,911 190,287
1945 0 1,599 0 3,613 4,052 1,346 2,288 29,699 2,639 170,461
1946 0 1,817 0 3,386 3,377 1,161 2,318 29,315 2,402 168,742
1947 0 1,861 0 3,843 2,883 1,294 2,503 34,063 3,103 185,312
1948 0 1,507 0 3,649 2,629 1,237 2,686 35,116 3,141 173,893
1949 0 606 0 3,309 2,509 911 2,692 28,088 2,741 119,674
1950 0 588 0 2,688 2,286 660 2,958 34,257 2,430 136,031
1951 0 534 0 2,966 2,127 710 2,925 34,427 2,017 136,836
1952 0 533 0 2,680 1,877 689 2,707 32,848 1,990 117,721
1953 0 482 0 2,171 1,699 466 2,543 31,513 1,966 112,746
1954 0 383 0 2,280 1,381 112 2,612 29,456 1,737 91,711
1955 0 464 0 2,932 1,131 183 2,814 34,355 1,963 101,531
1956 0 607 0 2,978 767 143 2,554 35,321 1,821 108,126
1957 0 679 0 2,700 375 124 2,323 33,441 1,992 100,429
1958 0 760 0 2,352 277 106 2,099 29,056 1,478 80,688
1959 0 764 0 2,493 313 135 2,189 31,853 1,384 78,015
1960 0 679 0 2,622 284 268 2,291 30,806 1,217 76,424
1961 0 687 0 2,665 337 374 2,473 29,235 936 72,664
1962 0 745 0 2,627 347 614 2,479 30,958 951 74,580
1963 0 1,054 0 2,880 311 1,764 2,176 33,376 914 81,437
1964 0 1,031 0 2,951 314 2,693 2,392 33,847 933 85,018
1965 0 1,098 0 3,233 330 2,914 2,478 35,734 884 86,341
1966 0 1,109 0 3,250 380 2,499 3,214 39,319 765 85,625
1967 0 1,184 0 3,353 337 3,142 3,770 41,744 747 83,161
1968 0 1,313 0 2,908 471 3,111 4,071 43,838 988 79,526
1969 0 1,241 0 2,995 934 4,056 4,267 46,486 1,667 80,835
1970 0 1,465 0 4,034 3,127 6,678 5,116 50,214 2,202 81,847
1971 0 1,491 0 3,661 6,408 7,416 5,511 46,658 2,027 73,993
1972 0 1,488 0 4,129 7,458 7,483 6,017 46,237 2,381 75,338
1973 0 1,623 0 4,225 9,730 8,227 6,265 41,534 1,980 75,508
1974 0 2,120 0 4,194 12,797 8,520 6,770 41,195 2,137 78,998
1975 0 2,364 0 5,115 20,007 7,725 7,725 42,429 2,605 81,956
1976 0 2,567 0 5,511 23,768 8,854 10,072 42,259 3,298 83,466
1977 0 2,754 0 5,775 24,676 10,054 10,912 43,471 5,423 82,101
(Chou, EIA, 2008)

(continued next page)

Introduction
14 COAL COST GUIDE Copyright © 2011 InfoMine USA, Inc.
Table 2: Historical coal production for the United States, 1930-present (continued)
(1,000s tonnes)

New North
Year Louisiana Maryland Mississippi Missouri Montana Mexico Dakota Ohio Oklahoma Pennsylvania
1978 0 2,720 0 5,139 24,131 11,460 12,726 37,410 5,507 78,485
1979 0 2,373 0 5,851 29,643 14,166 13,730 39,497 4,497 85,019
1980 0 3,411 0 4,992 27,100 16,715 15,400 35,738 4,861 84,482
1981 0 4,039 0 4,434 30,446 16,973 16,440 33,891 5,249 75,756
1982 0 3,463 0 4,845 25,302 18,093 16,198 33,104 4,352 71,994
1983 0 2,889 0 4,520 26,245 18,520 17,409 30,636 3,351 63,348
1984 0 3,722 0 6,108 29,937 19,304 20,060 35,613 4,209 70,302
1985 188 2,708 0 5,054 30,200 20,142 24,379 32,298 3,027 64,781
1986 2,045 3,543 0 4,252 30,825 19,501 23,260 33,059 2,765 64,999
1987 2,496 3,594 0 3,894 31,207 17,356 22,809 32,467 2,604 63,887
1988 2,621 2,920 0 3,604 35,273 19,703 27,019 29,293 2,009 64,090
1989 2,706 3,063 0 3,065 34,239 21,502 26,822 30,572 1,590 64,044
1990 2,890 3,163 0 2,401 34,125 22,038 26,502 31,980 1,540 63,970
1991 2,859 3,423 0 2,090 34,688 19,521 26,789 27,732 1,670 59,313
1992 2,939 3,031 0 2,618 35,280 22,271 28,798 27,581 1,579 62,579
1993 2,843 3,044 0 592 32,584 25,645 29,006 26,142 1,595 54,159
1994 3,142 3,295 0 760 37,776 25,439 29,290 27,122 1,734 56,461
1995 3,374 3,327 0 497 35,790 24,325 27,317 23,694 1,702 55,861
1996 2,922 3,713 0 644 34,374 21,833 27,090 25,920 1,543 61,637
1997 3,216 3,774 0 364 37,199 24,517 26,835 26,448 1,471 69,126
1998 2,918 3,683 0 337 38,864 25,943 27,136 25,445 1,507 73,515
1999 2,679 3,481 16 356 37,287 26,450 28,245 20,394 1,507 69,309
2000 3,356 4,124 818 396 34,793 24,787 28,368 20,202 1,441 67,693
2001 3,370 4,213 548 332 35,510 26,869 27,647 23,043 1,555 67,265
2002 3,450 4,669 2,091 225 33,916 26,232 27,941 19,194 1,276 62,046
2003 3,654 4,587 3,352 484 33,561 23,940 27,919 19,966 1,420 57,811
2004 3,452 4,740 3,253 524 36,278 24,721 27,164 21,067 1,626 59,871
2005 3,775 4,702 3,225 543 36,609 25,872 27,176 22,424 1,684 61,230
2006 3,732 4,585 3,445 357 37,942 23,508 27,589 20,613 1,813 59,901
2007 2,837 2,087 3,216 214 39,363 22,182 26,858 20,480 1,495 59,140
2008 3,486 2,595 2,578 224 40,630 23,265 26,877 23,815 1,327 59,343
2009 3,318 2,091 3,121 410 35,821 22,792 27,166 24,949 867 52,598
2010 3,684 2,345 3,714 413 40,904 21,192 26,599 24,812 958 54,266

1930-2010 77,951 175,472 29,378 231,159 1,299,382 832,466 968,870 2,433,036 164,732 7,692,474

(Chou, EIA, 2008)

Note: Production data for Michigan is not available.

Introduction
Copyright © 2011 InfoMine USA, Inc. COAL COST GUIDE 15
Table 2: Historical coal production for the United States, 1930-present
(1,000s tonnes)

Year Tennessee Texas Utah Virginia Washington West Virginia Wyoming U.S. Total
1930 4,654 680 3,863 9,895 2,088 110,200 5,523 486,346
1931 4,284 595 3,039 8,799 1,675 92,056 4,531 400,296
1932 3,210 557 2,587 6,978 1,443 77,664 3,784 325,684
1933 3,425 725 2,427 7,420 1,265 85,588 3,641 347,123
1934 4,659 660 2,183 8,507 1,255 89,027 3,963 378,096
1935 3,754 655 2,674 8,770 1,414 89,975 4,697 384,482
1936 4,634 728 2,946 10,580 1,644 106,982 5,244 447,182
1937 4,728 786 3,456 12,515 1,815 107,635 5,369 450,617
1938 4,057 767 2,674 11,143 1,422 84,630 4,721 357,470
1939 4,704 735 2,980 12,275 1,533 98,305 4,874 404,419
1940 5,450 550 3,244 13,924 1,497 114,704 5,269 464,223
1941 6,391 306 3,699 16,730 1,670 127,234 6,029 517,170
1942 7,401 264 5,005 18,267 1,772 141,414 7,378 583,044
1943 6,513 131 6,047 18,398 1,386 144,066 8,305 590,208
1944 6,501 100 6,458 17,703 1,383 149,418 8,655 619,600
1945 5,689 73 6,059 15,635 1,231 137,925 8,934 573,659
1946 5,097 51 5,438 14,086 899 130,654 6,926 539,055
1947 5,677 55 6,740 17,605 1,014 159,809 7,304 618,620
1948 5,881 52 6,181 16,329 1,107 153,191 5,817 595,654
1949 3,785 44 5,588 13,231 816 111,232 5,444 435,897
1950 4,599 16 6,051 16,027 793 130,741 5,759 508,293
1951 4,900 0 5,567 19,413 777 148,154 5,833 522,783
1952 4,776 0 5,570 19,576 766 128,561 5,523 460,291
1953 4,960 0 5,937 17,345 626 121,659 4,758 442,890
1954 5,832 1,183 4,543 14,866 562 105,231 2,568 381,704
1955 6,398 1,351 5,712 21,326 553 126,252 2,655 446,596
1956 8,027 1,726 5,917 25,459 429 141,422 2,316 482,293
1957 7,217 1,912 6,222 26,768 327 142,286 1,921 471,846
1958 6,155 1,652 4,834 24,336 229 108,381 1,478 393,187
1959 5,364 2,000 4,123 27,006 220 108,584 1,794 394,496
1960 5,380 1,903 4,495 25,254 207 107,905 1,836 395,900
1961 5,316 1,912 4,680 27,517 173 102,580 2,294 383,301
1962 5,637 1,863 3,898 26,739 213 107,502 2,331 400,138
1963 5,553 1,978 3,955 27,698 172 120,265 2,834 434,869
1964 5,434 2,079 4,282 28,715 62 128,284 2,813 459,452
1965 5,321 2,187 4,529 30,893 50 128,088 2,957 472,970
1966 5,723 2,044 4,205 32,264 54 135,790 3,329 498,109
1967 6,198 1,953 3,788 33,313 54 139,480 3,255 514,407
1968 7,392 2,078 3,915 33,535 161 132,379 3,474 507,117
1969 7,332 2,040 4,225 32,255 53 127,924 4,175 520,027
1970 7,473 2,096 4,294 31,766 34 130,701 6,552 557,897
1971 8,411 2,044 4,197 27,786 1,029 107,283 7,305 510,861
1972 10,215 3,670 4,356 30,870 2,390 112,259 9,914 546,577
1973 7,456 6,299 4,971 30,809 2,967 104,734 13,504 542,999
1974 6,841 6,971 5,314 31,140 3,550 92,953 18,782 553,407
1975 7,444 9,981 6,221 32,214 3,396 99,141 21,595 593,480
1976 8,421 12,758 7,228 36,284 3,728 98,734 27,974 621,153
1977 8,558 14,393 7,785 34,132 4,588 86,576 41,756 632,272
1978 9,101 18,162 8,293 28,981 4,271 77,396 52,915 607,866
1979 7,874 24,658 10,860 33,393 4,601 101,770 64,885 706,046
(Chou, EIA, 2008)
(continued next page)

Introduction
16 COAL COST GUIDE Copyright © 2011 InfoMine USA, Inc.
Table 2: Historical coal production for the United States, 1930-present (continued)
(1,000s tonnes)

Year Tennessee Texas Utah Virginia Washington West Virginia Wyoming U.S. Total
1980 8,981 26,630 12,008 37,203 4,663 110,300 86,081 752,742
1981 9,566 29,769 12,527 38,082 4,205 102,344 93,413 747,320
1982 6,759 31,587 15,449 36,086 3,778 116,611 98,304 760,316
1983 6,024 35,332 10,676 31,776 3,530 104,372 101,800 709,340
1984 6,634 37,326 11,179 36,622 3,513 118,850 118,764 812,663
1985 6,755 41,240 11,594 37,141 4,026 115,907 127,655 801,633
1986 6,232 44,081 12,945 37,356 4,174 117,851 124,128 807,689
1987 5,844 45,840 14,976 40,409 4,036 123,992 133,221 833,494
1988 5,606 47,405 16,404 41,628 4,667 129,671 148,793 858,493
1989 5,879 48,856 18,236 39,015 4,571 139,327 155,636 889,722
1990 5,618 50,581 20,011 42,563 4,537 153,502 167,150 933,573
1991 3,892 48,830 19,908 38,060 4,666 151,821 175,863 903,551
1992 3,153 49,960 19,359 39,031 4,764 147,114 172,523 904,965
1993 2,764 49,503 19,819 35,668 4,299 118,412 190,628 857,684
1994 2,710 47,488 22,135 33,683 4,439 146,762 215,088 937,591
1995 2,922 47,795 22,831 30,934 4,416 147,870 239,338 937,107
1996 3,312 50,044 24,954 32,287 4,141 154,616 252,599 965,126
1997 2,994 48,379 24,207 32,511 4,078 157,619 255,721 988,781
1998 2,446 47,703 23,655 30,615 4,208 155,262 285,230 1,013,819
1999 2,755 48,147 23,925 29,297 3,720 143,317 305,832 998,340
2000 2,421 44,904 24,182 29,787 3,874 143,570 307,448 973,973
2001 3,016 40,862 24,463 29,732 4,195 147,343 334,527 1,021,440
2002 2,872 41,048 22,956 27,176 5,286 136,150 338,529 991,831
2003 2,326 43,107 20,928 28,664 5,654 126,745 341,350 971,291
2004 2,619 41,607 19,728 28,504 5,128 134,258 359,696 1,007,992
2005 2,918 41,676 22,245 25,168 4,777 139,390 366,796 1,025,858
2006 2,544 41,321 23,603 26,980 2,341 138,233 405,282 1,054,159
2007 2,408 38,055 22,051 23,099 0 139,274 411,474 1,040,221
2008 2,116 35,396 22,104 22,419 0 143,135 424,244 1,063,058
2009 1,811 31,836 19,702 19,210 0 124,259 391,098 972,723
2010 1,591 36,425 17,571 19,697 0 124,662 404,203 992,719

1930-2010 427,292 1,452,153 839,584 2,087,974 181,043 9,967,652 7,977,906 53,015,700

(Chou, EIA, 2008)

Mexico

Mexico was the 25th largest producer of coal in the world in 2008 with 12.7 million short tons (11.5 million
tonnes) of coal produced. Historically, production has come from states of Coahuila, Sonora, Chihuahua, and
Oaxaca. Nearly all production of subbituminous and coking coal in 2007 came from 9 mines operated by four
companies located within 60 miles of the border with Texas in Coahuila State11, a decrease from 5 operators
producing coal from 11 mines in Coahuila State in 1990. Recent production amounted to about 62 percent of
consumption so the remainder was imported. Approximately 80 percent of this amount was steam coal and 20
percent was for metallurgical use.

Table 3-a shows total production from Mexico since 1980 reported by EIA and British Petroleum (BP). A
comparison with production reported by Minerals Information Branch of USGS gives similar (although not
identical) results. USGS reported in 199412 that mines operated in Coahuila, Sonora, and Oaxaca yet only

11
http://minerals.usgs.gov/minerals/pubs/country/2006/myb3-2006-mx.xls
12
Heydari, M.M., 1994, The mineral industry in Mexico: U.S. Geological Survey Minerals Yearbook, 17 pp.
http://minerals.usgs.gov/minerals/pubs/country/latin.html#mx
Introduction
Copyright © 2011 InfoMine USA, Inc. COAL COST GUIDE 17
mines in Coahuila reported production in that year. The unexplained discrepancy demonstrated in Table 3-b
shows production reported by CRM13 from two mines in Sonora State that differ from the production for
Mexico.

Table 3. Historical coal production reported in Mexico and Sonora State

3-a. Total for Mexico, 3-b. Sonora State,


in millions of tonnes14 in millions of tonnes (CRM, 1992)

Year Production Year Production Year Production


1980 3.63 1994 9.14 1980 na
1981 3.57 1995 9.31 1981 na
1982 4.30 1996 10.31 1982 na
1983 5.46 1997 10.41 1983 9.00
1984 5.98 1998 11.23 1984 9.38
1985 6.11 1999 10.32 1985 9.77
1986 6.61 2000 11.34 1986 10.16
1987 8.03 2001 11.35 1987 11.14
1988 7.17 2002 10.99 1988 10.59
1989 7.70 2003 9.60 1989 9.98
1990 7.79 2004 9.88 1990 na
1991 7.08 2005 10.76 1991 na
1992 6.57 2006 11.52 1992 na
1993 7.11 2007 12.25 1993-present na
na-not available

13
Cendejas Cruz, F., Ramos Cruz, S., Teran Martinez, G., y Macedo Palencia, R., (comp.) 1992, Monografia geologico-minera del Estado de Sonora:
Consejos de Recursos Minerales (CRM), Publ. M-8e, 220 pp.
14
Energy Information Agency, 2005; BP statistical review of world energy, 2008
Introduction
18 COAL COST GUIDE Copyright © 2011 InfoMine USA, Inc.
COAL FIELDS IN NORTH AMERICA

The geographic distributions of all North American coal fields are briefly described. The resource for each
region, state, and province is summarized in Table 4.

Table 4. Coal reserves and/or resources in North America

Reserve and/or Resource


State or Province (in billions of tonnes)

Canada Alberta 33.5


Saskatchewan 5.1
Nunavut Territory 6.3
Yukon Territory 2.27
Northwest Territories 1.5
New Brunswick 0.009
Nova Scotia 0.95

United States
Appalachian Basin Pennsylvania 58.0
Ohio 21.4
West Virginia 31.3
Virginia 1.5
Kentucky, eastern 55
Tennessee 0.7
Alabama 3.8
Maryland 0.6

Illinois Basin Region Illinois 191


Indiana 52
Kentucky, western 17.6

Michigan Basin Region Michigan 0.1

Gulf Coast Region Texas 11.2


Louisiana 0.9
Mississippi --
Alabama See above
Arkansas 3.9

Northern Great Plains Region North Dakota 1,300


Montana 109
Wyoming 62.3

Mid-Continent Region Oklahoma 1.45


Kansas 0.88
Arkansas 1.8

Rocky Mountains and Colorado 14.7


Colorado Plateau Region New Mexico 32.6
Utah 13.6

West Coast Alaska 4.9


Washington 1.34

Mexico Coahuila 1.5


Sonora 0.088
Chihuahua 0.6
Oaxaca 0.1
Total North American Resources and/or Reserves 2,042.4

Introduction
Copyright © 2011 InfoMine USA, Inc. COAL COST GUIDE 19
Coal Fields in Canada

Coal deposits of Canada are mainly located in the western provinces of British Columbia, Alberta,
Saskatchewan, Yukon Territory, Northwest Territories and Nunavat. Lesser reserves are found in the eastern
provinces of New Brunswick and Nova Scotia. See Figure 4.

Figure 4. Coal fields and oil sand deposits of Canada

British Columbia
British Columbia has an estimated available coal resource of 22 billion tons (20 billion tonnes). Coal resource
of over 250 billion tons (227 billion tonnes) is present at greater depths extending to 2,000 m (6,500 ft) and has
been studied for coal-bed methane exploration. Five mines are active in the Kootenay coal field in the southeast
with a reserve of 1.4 billion tons (1.3 billion tonnes) of low-, medium-, and high-volatile coking coal. The
Peace River coal field contains 1 billion tons (900 million tonnes) of bituminous coal and two active mines. The
Comox and Nanaimo coal fields located on Vancouver Island contain about 100 million tons (90 million tonnes)
of high-volatile bituminous coal where one mine is currently operating. The Klappan and Groundhog coal field
in the interior contains up to 1.7 billion tons (1.6 billion tonnes) of anthracite coal. The largest deposit of coal in
British Columbia is located at the Hat Creek deposit of subbituminous and lignite coal which may contain a
minable resource of 1.15 billion tons (1.04 billion tonnes). More information about British Columbia’s coal is
available in a technical paper by Barry Ryan (2002).15

15
http://www.empr.gov.bc.ca/Mining/Geoscience/Coal/CoalBC/Pages/default.aspx
Introduction
20 COAL COST GUIDE Copyright © 2011 InfoMine USA, Inc.
Alberta
Alberta has 37 billion tons (33.5 billion tonnes) of proven coal reserves, representing 70 percent of Canada’s
total reserve of coal. Most is located along the Foothills east of the Rocky Mountains and around Edmonton16.
Alberta’s coal bed methane resource is widespread and is located in the vicinity of Calgary, Edmonton, and
along the Foothills east of the Rocky Mountains17.

Saskatchewan
Saskatchewan is the third largest producer of coal in Canada with several open pit mines recently located in its
lignite coal field. Ninety percent of this coal is consumed in the province’s coal-fired electrical generating
stations18. Resources may exceed 5.6 billion tons (5.1 billion tonnes).

Nunavut Territory
Two coal properties located north of Resolute in Nunavut Territory are estimated to contain up to 6.3 billion
tons (5.7 billion tonnes) of in-place lignite coal19. They are not operating.

Yukon Territory
Coal fields of Yukon Territory include Division Mountain, Whitehorse, Bonnet Plume, Rock River, and
others20. At Division Mountain, a resource of 50 million tonnes of high-volatile bituminous coal supplies a 50
MW power plant. At Bonnet Plume in northern Yukon, a deposit of 725 million tons (660 million tonnes) of
high-volatile bituminous coal has been identified. At Rock River, a deposit of 66 million tons (60 million
tonnes) of lignite to subbituminous coal has been identified with additional potential for 1.65 billion tons (1.5
billion tonnes).

Northwest Territories
Three prospects containing lignite coal have been identified in the Fort Norman coal basin of Northwest
Territories containing resources of 1.65 billion tons (1.5 billion tonnes)21. None of these are in operation.

New Brunswick
Coal in New Brunswick is found in the Great Northern, Westmoreland, and the Sunbury coal fields. One New
Brunswick coal mine supplies 165,000 tons (150,000 tonnes) of coal annually to the Grand Lake thermal coal
generating station, one of four generating stations in the province. Total proven reserves in New Brunswick are
estimated at 10 million tons (9 million tonnes) of high-volatile bituminous coals22.

Nova Scotia
The most valuable, well developed, and largest of Nova Scotia’s four coal fields is the Sydney coal field located
on the northeastern coast of Nova Scotia’s Island of Cape Breton. Each field consists of multiple seams of
metallurgical and steam coals of Carboniferous Age that extends eastward from New Brunswick along the Bay
of Fundy to the easternmost tip of Cape Breton Island. Other developed coal fields include the Cumberland,
Inverness, and Pictou. The Sydney coal field occupies about 200 square miles on land and at least 100 square
miles extending seaward to the north toward Newfoundland beneath the Atlantic Ocean where coal seams are
partially developed by more than forty colleries. Mining of Sydney coals from 1894 through 1962 resulted in
extraction of 241 million tons (219 million tonnes) and at least 1,044 million tons (947 million tonnes) of
recoverable coal in this field still remains.23 Recoverable reserves in the Pictou, Inverness, and Cumberland are
unknown.

16
http://www.energy.gov.ab.ca/xdata/mapProducts/coal.pdf
17
http://www.energy.gov.ab.ca/NaturalGas/561.asp
18
http://www.ir.gov.sk.ca/Default.aspx?DN=3549,3541,3538,3385,2936,Documents
19
http://www.westhawkdevelopment.com/news/newsrelease/2007/202/
20
http://www.emr.gov.yk.ca/energy/coal.html
21
http://www.westhawkdevelopment.com/news/newsrelease/2007/201/
22
http://www.gnb.ca/0085/2.htm
23
http://www.mininghistory.ns.ca/lfrost/lfindex.htm
Introduction
Copyright © 2011 InfoMine USA, Inc. COAL COST GUIDE 21
Coal Fields in United States

Coal in the United States is divided among ten regional basins, Appalachian, Illinois, Gulf Coast, Northern
Great Plains, Rocky Mountains, Colorado Plateau, Mid-Continent, Michigan, and West Coast including
Washington and Alaska.24 Identified coal resources amount to 4 trillion short tons (3.6 trillion tonnes), but
recoverable reserve may only be 267 billion short tons (242 billion tonnes).25 See Figure 5.

AB - Appalachian Basin Southern Rocky Mountain Region and the Colorado Plateau
GC - Gulf Coast Region BC - Book Cliffs coal fields
IB - Illinois Basin BW - Boulder-Weld coal fields
KP - Kaiparowits Plateau
Northern Rocky Mountain Region P - Piceance Basin
BH - Big Horn Basin R - Raton coal fields
GR - Green River Basin S - Somerset coal fields
HA - Hanna Basin SJ - San Juan Basin
HF Hams Fork Basin WP - Wasatch Plateau
PR - Powder River Basin Y - Yampa coal fields
SYN - Great Plains Synfuel Plant
TB - Thunder Basin Mine
WB - Williston Basin

Figure 5. Coal fields in conterminous United States

24
http://energy.usgs.gov/factsheets/nca/nca.html#app
25
http://www.ket.org/Trips/Coal/AGSMM/agsmmwhere.html
Introduction
22 COAL COST GUIDE Copyright © 2011 InfoMine USA, Inc.
Appalachian Basin

In the eastern United States, approximately 40 percent of the nation’s coal production comes from the seven
Appalachian Basin states of: Ohio, Pennsylvania, West Virginia, Maryland, Virginia, eastern Tennessee, and
eastern Kentucky. Most coal is contained in just 10 coal beds, of which the Pittsburgh, Upper Freeport,
Kittanning, Fire Clay, Pond Creek, and Pocahontas No. 3 are the most important and responsible for about 15
percent of the U.S.’s coal production. Three other zones are the Hazard No. 5, Upper Elkhorn No. 3, and Alma.
All coals are Pennsylvanian in age and each zone produces about 10 million short tons (9 million tonnes)
annually.

Five coal zones in the Northern and Central Appalachian Basin region, the Pittsburgh, Upper Freeport, Fire
Clay, Pond Creek, and Pocahontas No. 3 zones are estimated to contain 66 billion short tons (60 billion tonnes)
of coal.26

Pennsylvania
The earliest record of coal mining in Pennsylvania is in 1761 at Fort Pitt, site of city of Pittsburgh today and
soon followed by mining of anthracite in 1769 in Wilkes-Barre in eastern Pennsylvania. Still, today’s remaining
demonstrated resource is as much as 12 billion tons (11 billion tonnes) of anthracite and 64 billion tons (58
billion tonnes) of bituminous coal27. This includes a recoverable bituminous resource of 10.9 billion tons (9.9
billion tonnes) and a recoverable anthracite resource of 760 million tons (690 million tonnes)28. The main
bituminous field extends across central and western Pennsylvania while the anthracite fields are located in the
east central part of the state. Bituminous coals occur in the Dunkard Group, Monongahela Group, Conemaugh
Group, Allegheny Formation, and Pottsville Formation. Anthracite coals are found in the Llewellyn Formation
and Pottsville Formation.

Eastern Kentucky
Coal removed from mines in 20 counties in eastern Kentucky mines from 1790 to 2006 totals 6,268 million tons
(5,686 million tonnes). About 67 percent of this amount has been produced from underground mines and 33
percent from surface mines. Production from underground mines peaked in 1947 at 64.6 million tons
representing 98 percent of production that year. Production from eastern Kentucky mines in 2010 was 106.5
million tons (97 million tonnes) with 53 percent of this amount from underground mines and the remainder from
surface mining29. Resources in the eastern Kentucky field are estimated at 61 billion tons (55 billion tonnes) 30
while recoverable reserves are 5.7 billion tons (5.1 billion tonnes)31.

West Virginia
Sixty-five of West Virginia’s 117 coal seams are considered minable seams and 54 seams had coal production.
Only two counties in West Virginia have no known coal resources. Total production of coal from 1930 to 2010
was 10,987 million tons (9,967 million tonnes) with the largest annual production of 173 million tons (157
million tonnes) occurring in 199732. In 2000, the demonstrated reserve in West Virginia was estimated at
34,515 million short tons (31,312 million tonnes) while the estimated recoverable reserve is 17,814 million tons
(16,160 million tonnes).

Maryland
The first coal was produced in Maryland in the early 1820s and barged down the Potomac River. Underground
production peaked at 4 million tons per year in 1907 with production in 2010 at 2.6 million short tons (2.3
million tonnes) from mainly surface mines. Today, two underground mines and 14 surface mines operate in

26
http://pubs.usgs.gov/pp/p1625c/
27
http://www.dcnr.state.pa.us/topogeo/education/coal/es7.pdf
28
http://www.eia.doe.gov/cneaf/coal/reserves/table15_06.xls
29
http://kgsweb.uky.edu/DataSearching/Coal/Production/prodresults.asp?areatype=eastern&placeAmt=multiple&county _list=total&year_
county=year&yearlmt=between&year2=1880&year3=2006
30
http://www.uky.edu/KGS/coal/coal_resources.htm
31
http://www.eia.doe.gov/cneaf/coal/reserves/table15_06.xls
32
http://www.wvminesafety.org/historicprod.htm
Introduction
Copyright © 2011 InfoMine USA, Inc. COAL COST GUIDE 23
Maryland. Coal occurs only in Allegany and Garrett counties in the westernmost part of the state. Production is
from 13 coal beds which range from 2 to 10 ft in thickness in the Georges and Potomac fields although three-
fourths of production comes from the Upper Freeport coal bed. Maryland’s demonstrated reserve base is 634
million tons (575 million tonnes) while its estimated recoverable reserve is 356 million tons (323 million
tonnes)33.

Virginia
Coal is produced only from the southwest part of the state of Virginia near the border with Kentucky and
Tennessee. Coal is found in 57 seams belonging to seven geological formations. Principal seams are the Tiller,
Norton, Kennedy, Lower Banner, and Jawbone seams34. In 2010, 55 underground mines and 54 surface mines
operated and produced a combined total of 21.7million tons (19.7 million tonnes) of coal. Virginia’s
demonstrated reserve base from underground and surface mines its 1,642 million tons (1,490 million tonnes)
while is estimated recoverable reserve is 785 million tons (712 million tonnes) 35.

Eastern Tennessee
In 2010, 13 underground mines and 15 surface mines were operating and produced a combined total of 1.8
million tons (1.6 million tonnes) of coal. Tennessee’s demonstrated reserve base from underground and surface
mines is 770 million tons (700 million tonnes) while its estimated recoverable reserve is 456 million tons (414
million tonnes)36.

Ohio
Ten underground mines and 44 surface mines were operating and produced a combined total of 27.4 million
tons (24.8 million tonnes) of coal in 2010. Ohio’s demonstrated reserve base from underground and surface
mines is 23,635 million tons (21,442 million tonnes) while its estimated recoverable reserve is 11,466 million
tons (10,401 million tonnes)37. About 62 percent of this resource can be extracted only by underground mining
and with the remaining 38 percent coming from surface mines.

Alabama
Coal has been mined in 21 counties from the Black Warrior Basin of northern Alabama for 150 years. It is the
14th largest producer of coal in the U.S. In 2010, 7 underground mines and 50 surface mines were operating
and produced a combined total of 21 million tons (19.1 million tonnes) of coal. Alabama’s demonstrated
reserve base from underground and surface mines is 4,170 million tons (3,782 million tonnes) while its
estimated recoverable reserve is 2,767 million tons (2,510 million tonnes)38.

Illinois Basin

The Illinois Basin (IB) including coal fields of Illinois, Indiana, and western Kentucky is one of the largest
Pennsylvanian coal basins in the U.S. The major beds of the Illinois Basin are the Springfield and Harrin coals.
Lesser beds are the Danville, Seelyville/Davis/Dekoven, Jamestown/Hymera, Colchester, Survant, Chapel,
Womac, and Murphysboro coals. Production from this basin peaked in 1994 at more than 121 million short tons
(110 million tonnes). Recently this production has declined as utilities have replaced the Illinois Basin’s high-
sulfur coal with lower sulfur coals from the western states.

33
http://www.eia.doe.gov/cneaf/coal/reserves/table15_06.xls
34
http://www.ext.vt.edu/pubs/mines/460-139/460-139.html
35
http://www.eia.doe.gov/cneaf/coal/reserves/table15_06.xls
36
http://www.eia.doe.gov/cneaf/coal/reserves/table15_06.xls
37
http://www.eia.doe.gov/cneaf/coal/reserves/table15_06.xls
38
http://www.eia.doe.gov/cneaf/coal/reserves/table15_06.xls
Introduction
24 COAL COST GUIDE Copyright © 2011 InfoMine USA, Inc.
Indiana
Bituminous coal in Indiana has become one of the state’s most valuable resources since its discovery along the
banks of the Wabash River in 1736. Annual production increased to about 30 million tons (27 million tonnes)
through 1918 with coal mining chiefly from underground mines. Surface mining increased rapidly after 1950 to
peak again in 1988 at an annual production rate of 35 million tons (32 million tonnes). Current demonstrated
reserves in Indiana are about 57 billion tons (52 billion tonnes) of unmined coal of which about 17 billion tons
(15 billion tonnes) are currently recoverable by surface mining39.

Illinois
The estimated resource of coals of Pennsylvanian age in Illinois is more than 210,550 million tons (191,000
million tonnes), the second largest in the United States, of which 40,308 million tons (36,567 million tonnes) are
recoverable. The electric power industry is the largest user of coal with 85 percent of Illinois electricity
generated in coal-fired generating plants. However, much of the coal used to generate electricity in Illinois is
imported from western states partly due to the high percentage of sulfur in Illinois coal. Over 75 separate coal
seams have been identified as nearly 80 percent of the state is underlain by coal beds. Only the Springfield,
Herrin, Colchester, Danville, Davis, Murphysboro, and Seelyville seams are of major economic importance.
Mining of coal from underground mines peaked at about 90 million tons (81.6 million tonnes) in 1918 with over
400 mines active. About 9 surface and 13 underground mines were active in 2009 when 33.7 million tons were
produced40.

Western Kentucky
Production of coal from 17 counties in western Kentucky from 1790 to 2006 totals 2,714 million tons (2,462
million tonnes). About 53 percent of this amount came from underground mines and 47 percent from surface
mines. Production from underground mines peaked in 1927 at 18.9 million tons (17.1 million tonnes).
Production from western Kentucky in 2009 was 32.6 million tons (29.6 million tonnes) with 78 percent of this
amount from underground mines. Resources in the western Kentucky field are estimated at 19.45 billion tons
(17.64 billion tonnes)41.

Michigan Basin

The Michigan Basin Region lies in the Saginaw Valley of the central part of Michigan. Michigan coal mines
produced 46 million tons (42 million tonnes) of coal between 1860 and 1949 although one mine operated during
1974-1975. Production increased rapidly after 1895 reaching a maximum in 1907 at 2,035,858 tons (1,846,918
tonnes) from 37 mines and then slowly declined. Coal beds occur in strata of lower to middle Pennsylvanian
age and are non-coking high-volatile B and C bituminous in rank. Michigan has 220 million tons (200 million
tonnes) of demonstrated reserves42 yet measured recoverable reserves total 110 million tons (100 million
tonnes)43. There is renewed interest in coal mining because of proximity of coal fields to large potential markets
and because Michigan has 88 coal-fired power plants that now supply 60 percent of its electrical power44.

Gulf Coast Region

The Gulf Coast Region (GC) of Texas, Louisiana, Mississippi, Alabama, Arkansas, Florida, and Tennessee
produces about 57 million tons of coal annually, a 20-fold increase since 1970.

39
http://igs.indiana.edu/coal/index.cfm
40
http://www.isgs.uiuc.edu/maps-data-pub/coal-maps/pdf-files/Illinois-coalgeology.pdf
41
http://www.uky.edu/KGS/coal/coal_resources.htm
42
http://www.eia.doe.gov/cneaf/coal/reserves/table15_06.pdf
43
Cohee, G.V., Burns, R.N., Brown, A, Brant, R.A., and Wright, D., 1950, Coal resources of Michigan: U.S. Geological Survey Circular 77, 59 pp.
http://pubs.er.usgs.gov/usgspubs/cir/cir77
44
http://www.deq.state.mi.us/documents/deq-ogs-gimdl-USBMOF76.pdf
Introduction
Copyright © 2011 InfoMine USA, Inc. COAL COST GUIDE 25
Texas
Texas ranks sixth in production in the U.S. Most coals are lignite from the Wilcox Group of Paleocene-Eocene
age, with some bituminous coals used to supply mine-mouth power plants. Demonstrated reserves in Texas are
12.3 billion tons (11.2 billion tonnes) while recoverable reserves are estimated at 9.5 billion tons (8.6 billion
tonnes)45.

Louisiana
Two Louisiana mines produced 3.7 million tons (3.3 million tonnes) of lignite coal in 2009 to serve five
operating power plants in the state. Reserves in Louisiana are estimated at 1 billion tons (0.9 billion tonnes).

Mississippi and Alabama


Mississippi produced 3.7 million tons (3.2 million tonnes) of coal in 2010 where 9 coal-fired power plants are
operating46. Southern Alabama has 57 active coal mining operations with recoverable coal reserves estimated at
3.1 billion tons (2.8 billion tonnes).

Arkansas
Two coal mines presently operate in Arkansas, a state with a long history of coal mining. It has a recoverable
reserve of coal of 2 billion tons (1.8 billion tonnes) of bituminous to semi-anthracite coals of Pennsylvanian age
located in the Arkansas Valley of the Mid-Continent Region and 4.3 billion tons (3.9 billion tonnes) of lignite of
middle Tertiary age of the Gulf Coast Region located in the south. The Mid-Continent field extends south from
Iowa including parts of Kansas, Missouri, Oklahoma and central Texas.

Northern Great Plains Region

The Northern Great Plains Region contains vast amounts of strippable and deep coal in beds up to 320 ft (98 m)
thick from the Paleocene Fort Union Formation. Mines are located in North Dakota, Montana, and Wyoming.
Beds as thick as 140 ft (43 m) are currently being mined. This region includes the 14 largest coal mines in the
U.S. with each mine having annually produced more than 10 million short tons (9 million tonnes) of low sulfur
coal. Production is from 14 subbituminous coals of the Wyodak-Anderson, Anderson-Dietz, and Rosebud
seams of the Powder River Basin (PR). Others are from lignite coals of the Beulah-Zap, Hagel, and Harmon
beds of the Williston Basin (WB).

Wyoming
Twenty underground and surface mines operated in 2009 in Wyoming’s coal fields located in the Powder River
Basin (PR), Green River Basin (GR), Big Horn Basin (BH), Hams Fork Basin (HF), and Hanna Basin (HA)47.
Wyoming’s demonstrated reserves are 68.7 billion tons (62.3 billion tonnes) of surface and underground low-
sulfur, low-ash subbituminous coal, and or 14.4 percent of total for U.S. The production in 2010 was 445.6
million short tons (404.2 million tonnes). Two surface mines, the Black Thunder (TB) and North
Antelope/Rochelle, each annually produced more than 90 million tons (81.6 million tonnes) in recent years from
seams ranging from 60 to 80 ft (18-24.5 m) in thickness.

Montana
Six mines operate in Montana’s coal fields located in the eastern part of the state. Five mines are located in the
northern Powder River Basin and one mine is located in the western Williston Basin. The 2010 production was
45.1 million short tons (40.9 million tonnes)48. Montana’s demonstrated reserves are 120 billion tons (109
billion tonnes) (25 percent of total for U.S.) of low-sulfur surface and underground subbituminous and lignite
coal.

45
http://www.eia.doe.gov/cneaf/coal/reserves/table15_06.xls
46
http://www.mcrcc.osmre.gov/Birmingham/birmingh.htm
47
http://www.wma-minelife.com/coal/coalfrm/coalfrm1.htm
48
http://www.montanacoalcouncil.com/production_employment.html
Introduction
26 COAL COST GUIDE Copyright © 2011 InfoMine USA, Inc.
North Dakota
Surface and underground lignite resources of the Fort Union Formation of the Williston Basin in North Dakota
total approximately 1.4 trillion short tons (1.3 trillion tonnes). About 25 billion tons (23 billion tonnes) is
economically accessible from surface mines49. Four mines currently operate to supply lignite to eight power
plants and one synfuel plant in North Dakota with production of 29.3 million short tons (26.6 million tonnes) in
201050.

The Great Plains Synfuel Plant (SYN), operated since 1984 near Beulah North Dakota, is the only commercial
coal gasification plant in the U.S. It uses 18,000 short tons (16,000 tonnes) of lignite per day from the Freedom
mine to fuel the production of 160 million cubic feet (3.68 million cubic m) of natural gas, plus by-products
such as carbon dioxide, phenol, anhydrous ammonia, ammonium sulfate, cresylic acid, nitrogen, and noble gas
elements, krypton and xenon. To February 2011, the Great Plains Synfuel Plant (SYN) delivered 20 million
tons of co2 through a 205-mile pipeline to Weyburn, Saskatchewan. .The plant produces 1,200 tons (1,090
tonnes) per day of anhydrous ammonia used as an agricultural fertilizer and 5,500 tons (4,990 tonnes) per day of
carbon dioxide moved by pipeline to oil fields in North Dakota and Saskatchewan. The oil fields use the carbon
dioxide to increase ultimate recovery of oil from these fields.

Mid-Continent Region

The Mid-Continent Region contains bituminous coal of Pennsylvanian age. This region encompasses states of
Kansas, Oklahoma, and Arkansas. Production and reserves in Iowa and Missouri are small. Arkansas coal
production is discussed above in the Gulf Coast Region.

Oklahoma
A demonstrated reserve of about 1.6 billion tons (1.45 billion tonnes) of bituminous coal remains in Oklahoma.
Of this amount, 798 million tons (724 million tonnes) are economically recoverable. Oklahoma’s bituminous
production totaled 1.0 million tons (0.9 million tonnes) in 2010 from 10 mines. This is a decrease from its
highest rate of 5.7 million tons (5.1 million tonnes) attained in 1981. It ranks as the 19th largest of 32 coal
producing states. Coal ranges in rank from high-volatile bituminous coal in the northeast and western Arkoma
Basin to medium- to low volatile bituminous in the east in the eastern Arkoma Basin51.

Kansas
Pennsylvanian age coals are located in the extreme southeast part of the state. Production is about 120,000 tons
(108,000 tonnes) annually but consumption is about 10 million tons (0.9 million tonnes) annually to supply 19
coal-fired electric power generating stations. Most coal consumed in Kansas is imported from Wyoming52.
Kansas’ coal reserve is 977 million tons (886 million tonnes) in beds that average about 2 ft (0.7 m) in thickness
and considerable overburden must be removed for mining.

Rocky Mountains and Colorado Plateau Region

The Rocky Mountains and Colorado Plateau Region contains low sulfur-low ash bituminous and subbituminous
coals of Cretaceous age in the San Juan Basin (SJ) of Colorado and New Mexico, Piceance Basin (P) of
Colorado, and the Wasatch Plateau (WP), Book Cliffs (BC), and Kaiparowits Plateau (KP) fields of Utah.

49
https://www.dmr.nd.gov/ndgs/newsletter/nl0107/lignite.pdf
50
http://www.lignite.com/facts
51
http://www.ogs.ou.edu/coal.php and http://www.ok.gov/mines/Coal_Program/Oklahoma_Coal/index.html
52
http://www.eia.doe.gov/cneaf/coal/st_coal_pdf/0576m.pdf
Introduction
Copyright © 2011 InfoMine USA, Inc. COAL COST GUIDE 27
Utah
Principal production from Utah has been from the Wasatch and Book Cliffs fields which have produced 950
million short tons. Estimated recoverable resources from Kaiparowits Plateau, Wasatch Plateau, Book Cliffs
and other fields in Utah are estimated at 15 billion short tons (13.6 billion tonnes)53. This amount includes coal
in the Kaiparowits Plateau of southern Utah that is unavailable for mining because it lies within the Escalante-
Staircase National Monument.

New Mexico
Coal in New Mexico is located in two principal basins, the San Juan Basin (SJ) and the Raton Basin (RB).
Estimated recoverable reserves from coal fields in New Mexico are 35.9 billion short tons (32.6 billion tonnes)
of strippable and deep bituminous and subbituminous coal. Four surface mines and one underground mine were
active in New Mexico in 2010.

Colorado
Recoverable low-to-medium sulfur, surface and underground coal reserves in Colorado are estimated at 10
billion short tons (9 billion tonnes)54 compared to a demonstrated reserve of 16.158 billion tons (14.658 billion
tonnes). Colorado coal producers removed 24.9 million short tons (23 million tonnes) in 2010 from eleven
mines, 78 percent of which comes from underground longwall mining operations. Mines are located in the
Yampa coal field (Y), in the Piceance Basin (P) near Craig in the northwest, and in the Somerset coal field (S) in
the Colorado Plateau near Grand Junction in the west central part of the state. Other coal fields are the Boulder-
Weld (BW) coal field east of Boulder in the northeast and the northern part of the Raton Basin coal field near
Trinidad in the southeast part of the state.

West Coast Coal Fields

Washington
Washington’s demonstrated resource is 1,340 million tons with a recoverable reserve of 681 million tons55.
Coal has been an important part of the state economy, estimated to be the second highest valued mineral
commodity in 1992. Eleven small coal fields are located west of the Cascade Mountains, including the
Bellingham, Chehalis-Centralia, and Carbondale deposits. The Cle Elem field is located on the east Cascade
foothills. Coal of Eocene age from lignite to anthracite is present but production of subbituminous coal
predominates. Washington’s earliest recorded coal discovery was in 1833 in Cowlitz County and the first mine
was opened in 1853 near Bellingham. Production of coal from Washington’s mines was 2 million tonnes in
1900, then doubled by 1918, but dropped to 37,000 tons by 1970. Production was revived in 1971 by the
Centralia surface mine to supply Pacific Power’s 1310 MW plant nearby until the mine closed in 200756.

Alaska
Demonstrated reserves in Alaska are estimated at 5.4 billion short tons (4.9 billion tonnes) of mainly bituminous
and subbituminous coal although the identified resources from all fields are estimated at 170 billion short tons
(150 billion tonnes) (Figure 6). This is 40 percent of the total coal reserve for the U.S.57. Coal is produced from
the Kenai coal field (K) south of Anchorage in the Cook Inlet and the Nenana coal field (N) south of Fairbanks.
Coal from Nenana supplies the Healy and the Chena power plants58 in the east central part of the state.
Strippable coal deposits were estimated in 1954 at 95 million tons (86 million tonnes), but a large underground
reserve also exists59. The Usibelli Coal mine operates near Healy in the Nenana Coal field. Three seams mined
at the Usibelli mine average 18 ft, 30 ft, and 24 ft (5.5 m, 9.2 m, and 7.4 m) in thickness to produce 1.5 million

53
http://geology.utah.gov/emp/energydata/coaldata.htm
54
http://www.eia.doe.gov/cneaf/coal/statepro/imagemap/co4p1.html
55
http://www.nma.org/pdf/c_production_mines_state_type.pdf
56
State coal profile: Washington: Energy Information Administration State coal profiles
57
http://www.osmre.gov/pdf/alaska.pdf
58
http://www.eia.doe.gov/cneaf/coal/st_coal_pdf/0576e.pdf
59
Wahrhaftig, C. and Birman, J.H., 1954, Stripping coal deposits on lower Lignite Creek Nenana coal field, Alaska: US Geological Survey Circular 310,
11 pp. http://www.dggs.dnr.state.ak.us/webpubs/usgs/c/text/c-0310.PDF
Introduction
28 COAL COST GUIDE Copyright © 2011 InfoMine USA, Inc.
short tons (1.4 million tonnes) of subbituminous coal annually. About one third of the coal from the Usibelli
mine is third of the coal from the Usibelli mine is exported. A second mine in the Kenai coal field, the Chuitna
coal mine, is planned. It contains 14.4 million tons of low-sulfur bituminous coal60.

Georgia and South Dakota

Georgia recorded the production of 574,000 tonnes coal during the years of 1960 – 1961, and 1975 – 1979.
South Dakota produced 34,000 tonnes of coal during 1960 – 1961. The locations from which the coal was
produced within these states is not available.

Figure 6. Coal fields in Alaska


(See Figure 4 for explanation of symbols)

Coal Fields in Mexico

Mexico’s coal is found in states of Coahuila, Oaxaca, Sonora, and Chihuahua with very small amounts found in
Guerrero and Puebla states. Much of the coal found in the mountainous regions (with exception of coal of
Middle Tertiary age in Coahuila state) has been transformed by metamorphic processes to bituminous,
anthracite, or graphite during mountain building episodes. Therefore, much of the coal mined today is from
Tertiary age, unmetamorphosed coal from Coahuila state. México’s recoverable coal reserves reported by
Corona-Esquivel61 are 1,335 million short tons (1,210 million tonnes) (as of January 2005), with the majority of
the resources located in the Sabinas Basin in the state of Coahuila. The smaller Colombia-San Ignacio and
Fuentes-Rio Escondido coal Basins extend eastward across the state boundary into Nueva Leon and Tamaulipas
near the U.S/Mexico border with the United States. Coals are subbituminous high-volatile C and coking coal

60
http://www.usibelli.com/Coal_leases.asp
61
Corona-Esquivel, R. and others, 2006, Geologia, estructura y composicion, de los principales yacimiento de carbon en Mexico: Boletin de la Sociedad
Geologica Mexicana en la Volumen Commemorativo del Centenario, Tomo LVIII, Num. 1, p. 141-160
Introduction
Copyright © 2011 InfoMine USA, Inc. COAL COST GUIDE 29
grades. Other states having significant coal deposits include the San Marcial and Santa Clara regions in Sonora
and the Tezoatlan-Mixtepec-Consuelo and Cualac regions of Oaxaca. Smaller fields, including sub-economical
sites and fields, are found in states of Colima, Chihuahua, Chiapas, Durango, Guerrero, Hidalgo, Jalisco,
Michoacan, Puebla, San Luis Potosi, Tabasco, and Veracruz. Coals are mainly of Jurassic age, except for those
in the northeast along the border with Texas that are Middle Tertiary in age. (See Figure 7).

Figure 7. Coal fields in Mexico

Coahuila
In 1950, Recursos Minerales en Mexico (RCM)62 characterized the coals in the mining region of the Coahuila
state. Seven coal basins in Coahuila contain an estimated resource of 1,533 million tonnes of coal that range in
rank from lignite to semi-anthracite (Table 5). These basins occupy an area of 4600 mi2 (7,420 km2) and are
about 100-120 mi (160-190 km) northeast of the city of Monterrey. Coal in Coahuila is part of the Gulf Coast
Coal Region of the United States that extends south across the Coahuila/Texas border.

62
Gonzalez Reyna, J., 1950, Coal deposits of the Coahuila region, Mexico: Scientific Communications, Society of Economic Geologists, v. 45, p. 249-251
Introduction
30 COAL COST GUIDE Copyright © 2011 InfoMine USA, Inc.
Table 5. Coal resource in Coahuila state of Mexico

Coal basin
Area Length-width Thickness Quality Resource, tonnes
name

Lignite to High volatile A


Fuente 8130 ha 45 x 18 km 1.2 m bituminous, coking 81 million

Low to medium volatile


Sabinas 75,203 56 x 24 1.5 bituminous, coking 900 million

Esperanza 7,439 40 x 5 1.2 Low volatile bituminous 163 million

Saltillito --- --- 1.7 Semi-anthracite 145 million

Lampacitos 25,203 --- 1.7 Semi-anthracite 235 million

San Patricio 180,894 --- --- Not evaluated Not evaluated

San Blas --- --- --- Not evaluated Not evaluated

1,533 million

Oaxaca, Guerrero, and Puebla


About 110 million tons (100 million tonnes)63 of medium-volatile bituminous to semi-anthracite low sulfur with
high ash content coal of Jurassic age has been identified in the Mixtepec coal region of Oaxaca extending over
3125 mi2 (8,094 km2) and partly extending into Guerrero and Puebla states. This is about 110 mi (175 km)
south of Mexico City. This area contains two workable seams ranging from 5 to 7 ft (1.5-2.1 m) thick.

Sonora
Two workable coal districts are identified in Sonora State. Coal grade ranges from bituminous to anthracite,
including several deposits of graphite. Deposits are in Cretaceous, Jurassic, and Triassic rocks. Coal seam
thickness ranges from 1 to 10 ft (0.3-3.0 m). The Distrito Carbonifero of Jurassic age 50 mi (80 km) south of
Hermosillo is the most important. It is the site of several deposits and past producing mines, including the San
Enrique and San Marcial containing 2.97 million tons (2.7 million tonnes) of proven reserve and 97.9 million
tons (88.8 million tonnes) of additional anthracite resource. A potential of at least 10 million tons (0.9 million
tonnes) of coal exists in Lower Cretaceous rocks of the Cabullona region in the northeast of Sonora64.

Chihuahua
About 23 million tons (21 million tonnes) of workable coal and a sub-economic resource of 723 million tons
(656 million tonnes) of coals of Jurassic age are identified in the Ojinaga field, one of several small fields in
eastern Chihuahua65.

63
Toron, L. and Cortes-Obregon, S., 1954, Exploration of Oaxaca coal fields in southern Mexico: Mining Engineering, Map 1954, p. 505-509; Corona-
Esquivel, R. and others, 2006, Geologia, estructura y composicion, de los principales yacimiento de carbon en Mexico: Boletin de la Sociedad Geologica
Mexicana en la Volumen Commemorativo del Centenario, Tomo LVIII, Num. 1, p. 141-160
64
Cardenas Vargas, J. (ed.), Monografia geologico-minerales del estado de Sonora: Consejo de Recursos Minerales, Publ. M-8e, 219 pp.
65
Marguez Hernandez, G., Ramos Meza, O., E., y Bustos Diaz, J.L., 2007, Monografia geologico-minera del estado de Chihuahua: Derechos Reservados
del Servicio Geologico Mexicano, 639 pp. http://portal.sgm.gob.mx/publicaciones_sgm/Informe_b.jsp
Introduction
Copyright © 2011 InfoMine USA, Inc. COAL COST GUIDE 31
GLOBAL COAL RESOURCE AND USE

The 15 top-ranked coal producing countries account for 95 percent of world coal output. The top 5
producers are China (41%), U.S. (15.7%), India (7.6%), Australia (5.9%) and Russian Federation
(4.8%).

Consumption

Annual consumption of energy for all uses from all sources in the world is an enormous 11,099 million oil
equivalent (MMOE) tonnes. The five principal sources include oil, natural gas, coal, hydroelectric, and
uranium. Of this amount, world coal consumption amounted to 3,278 MMOE tonnes in 2009, an increase of 3.1
percent over 2007, of which 498 MMOE tonnes (about 747 million tonnes of hard coal on an equivalent basis)
was the United States’ 2009 share of consumption (Figure 8). Small contributions from renewable energy
sources—consisting of installed capacities of geothermal, solar, ethanol, wood debris, and wind-
amounted to 103 MMOE tonnes.

Figure 8. World energy consumption in 2009

Introduction
32 COAL COST GUIDE Copyright © 2011 InfoMine USA, Inc.
Reserve

Global proved coal reserve at the end


of 2009 was 910.5 billion tons (826 billion tonnes). This reserve is adequate, at the current state of production,
for another 150 years’ supply. Examination of the coal reserves for the top ten countries in 2009 shows that the
United States has the highest proved recoverable reserve at nearly 262 billion tons (238 billion tonnes) (Figure
9). Canada’s proved reserve was 7.2 billion tons (6.5 billion tonnes).

Figure 9. Global proven recoverable coal reserves


(in millions of tonnes)

The top ten ranked countries in terms of their proved coal reserve, in decreasing order, are the U.S. (28.6%),
Russian Federation (18.5%), China (13.5%), Australia (9%), India (6.7%), South Africa (5.7%), Ukraine (4%),
Kazakhstan (3.7), Serbia (1.2%), and Poland (0.9%)66. Together, U.S., Russian, and Chinese reserves account
for 60 percent of the total recoverable reserve and 64.5 percent of production67. The top four exporters of coal
Australia, Indonesia, China, and South Africa accounted for 65 percent of coal exports of 562 million short tons
(510 million tonnes) in 2005.

Proved recoverable coal reserves for the U.S. are composed of about 46 percent anthracite and bituminous coals,
40 percent subbituminous coals, and about 13 percent lignite68.

66
http://www.worldenergy.org/publications/survey_of_energy_resources_2007/coal/627.asp
67
http://www.bp.com/statisticalreview
68
http://www.worldenergy.org/publications/survey_of_energy_resources_2007/coal/627.asp
Introduction
Copyright © 2011 InfoMine USA, Inc. COAL COST GUIDE 33
Generation of Electricity from Coal

Coal-fired generation as a percentage of all forms of electrical generation in the U.S. decreased from 1,985 to
1,757 million megawatt-hours from 2008 to 2009, a decrease of 11.5 percent. Coal still produces 44 percent of
all electricity in the U. S. Most states located in the Rocky Mountain, Midwest, and Eastern regions of the U.S.
rely on coal as a primary source of electricity generation. Table 6 lists the net electrical generation of power in
the U.S. in 2009.

Table 6. Net electrical power generation, 2009

Million As a Number of
megawatt-hours percent of source states
Electrical power generation by source:

Coal 1,757 44.4% ---

Petroleum, natural gas 959 24.2% ---

Hydroelectric 295 7.5% ---

Nuclear 795 20.1% ---

Geothermal 15 0.4% ---

Biomass and other 61 1.5% ---

Solar, wind 75 1.9% ---

All sources 3,957 100.0% ---

Coal-fired electrical generation by state:


States that rely on coal for more than 33 percent
1,611 40.7% 32
of electrical power need

States that rely on coal for more than 55 percent 1,059


26.8% 22
of electrical power need 60% of all coal

Largest Midwest and eastern users* 1,215 30.7% 16

* Texas, Ohio, Indiana, Pennsylvania, Illinois, Kentucky, Missouri, Georgia, West Virginia, Michigan, North Carolina, Alabama,
Florida, Wyoming, Tennessee, in decreasing order
Source: Form EIA-906 at www.eia.doe.gov/electricity, 2010

Introduction
34 COAL COST GUIDE Copyright © 2011 InfoMine USA, Inc.
Twenty-two states rely on coal for more than 55 percent of their electrical generation demand (Figure 10)69.
Power generation from coal in these 22 states amounts to 1,059 million mega-watt-hours, or 26.8 percent of all
electrical power generated from all sources in 2009 (EIA, 2010). Only the District of Columbia uses no coal for
electrical generation.

Figure 10. Sources of fuel for electrical generation

Demand for coal-fired generation of electricity is greatest in the Midwest and eastern states. Coal-fired electrical
generating plants in the sixteen states rank these states as largest producers of electricity generated from coal in
the U.S., with generation 1,215 million megawatt-hours in 2009 (Figure 11). A total of 308 electrical generating
plants fueled by coal are located in these 16 states out of a total of 586 coal-fired electrical generating plants
located in all 50 states.

Idaho, Maine, and Rhode Island (in decreasing order) used the least amount of electricity generated from coal.
Coal use in these states accounts for less than 0.1 percent of electricity generated from all sources.

69
http://www.eia.doe.gov/cneaf/electricity/epm/table1_1.html
Introduction
Copyright © 2011 InfoMine USA, Inc. COAL COST GUIDE 35
Figure 11. Quantity of power generated by coal in U.S.

Coal Conversion and Energy Demand for Coal

Energy demand for electricity generation in the U.S. has grown 50 percent since 1980 and is forecast to increase
1.6 percent annually to 2030. Worldwide, 30 percent of demand through 2030 will come from developed
countries and 70 percent of this demand will come from developing non-OECD countries. China alone will
account for a 4.4 percent annual growth or overall 30 percent of this demand. Oil provides 35 percent of global
energy consumption. Demand for oil will continue to grow, primarily owing to rapid growth in vehicle
ownership in developing nations. Energy security concerns in the oil sector are increasing, owing to questions
of resource availability, supply security, political instability and infrastructure difficulties.

Coal offers credible possibilities as an inter-fuel substitute for oil and natural gas. The development of coal-to-
liquids and coal-to-gas industries can serve as a hedge against oil-related energy security risks, minimizing
exposure to oil price volatility and foreign currency risk, while providing the fuels from domestic sources
needed for economic growth. An example is the Great Plains Synfuel Plant in North Dakota70.

Underground Coal Gasification (UCG) is another burgeoning area of interest that allows access to coal
resources where mining is either economically or geologically not feasible. UCG permits exploitation of
deposits by the controlled in-situ gasification to form a syngas of coal. Carbon dioxide from the process can
safely be returned to the gasified seam or can be captured and sold separately. Feasibility studies and
demonstrations are ongoing. Early studies suggest that the use of UCG could potentially increase world

70
http://www.dakotagas.com/Companyinfo/Gasification_Process.html
Introduction
36 COAL COST GUIDE Copyright © 2011 InfoMine USA, Inc.
reserves by 623 billion tons (565 billion tonnes) capable of yielding 5,300 trillion cu.ft. (150 trillion cu m) of
natural gas. Approximately 63 percent of world reserves of 6,621 trillion cu.ft. (187.5 trillion cu.m.) are found
in USA, Europe and Russia71. For comparison, the world production of natural gas in 2009 was 105.5 trillion
cu.ft. (3.0 trillion cu. m.)72.

Coal-Fired Power Plant Efficiencies

New coal-fired power plants worldwide are being built to perform at 'supercritical' and 'ultra supercritical'
conditions of temperature and pressure, increasing electricity generation efficiency to 40-50% and higher. The
first 1,000 MW supercritical pulverized coal (SCPC) plant became operational in China in November 2006.
Cost per kW-hour of a 1,000 MW plant is 5.21 cents/kWh, but disposal of carbon, nitrogen and sulfur oxides
and mercury increase the total cost of SCPC to 8.29 cents/kWh (Figure 12).

Integrated Gasification Combined Cycle (IGCC), another advanced technology holds out a number of benefits
for coal-fired power generation. Coal is not burned to raise steam in IGCC, but instead is reacted to form a
hydrogen-carbon monoxide synthesis gas. The synthesis gas, when combusted in a gas turbine, is used to
generate electricity, with waste heat being used to raise steam for a secondary steam turbine. Not only are
efficiencies increased in doing so, thereby reducing emissions of CO2, but pollutant emissions are also
significantly reduced. IGCC’s construction costs have been significantly more expensive than the conventional
coal-fired plant. Comparison suggests a capital cost of US$ 1500/kW for IGCC compared with US$ 750/kW for
conventional plants and US$ 1000/kW for SCPC plants. However, the IGCC Alliance-GE recently
demonstrated that the cost of 5.66 cents/kWh of IGCC is similar to that of the SCPC plant, on a cost-of-
electricity basis, once allowances for capturing SOx, NOx, and Hg are made. The cost of IGCC, at 6.90
cents/kWh, costs less than an SCPC plant after accounting for the disposal of CO273.

Figure 12. Cost of electricity comparison


(IGCC Alliance-GE) (IGCC=integrated gas combined cycle, SCPC=supercritical pulverized coal)

71
http://www.worldenergy.org/documents/coal_figure_1_6.pdf
72
BP Statistical Review of World Energy, 2010
73
http://www.worldenergy.org/publications/survey _of_energy_resources_2007/coal/631.asp
Introduction
Copyright © 2011 InfoMine USA, Inc. COAL COST GUIDE 37
OTHER ENERGY RESOURCES

Crude Oil and Natural Gas Liquids

The World Energy Council has projected the estimated ultimate recovery (EUR) of the world’s conventional
crude oil supplies at 387 billion tonnes, a quantity equal to the sum of cumulative production, reserves, and
resources74 (Figure 13). That’s more than double the remaining 181.7 billion tonnes (1,333 billion bbls.) of
proved reserves estimated by BP for 200975. Crude oil remains the most important primary fuel, accounting for
36.5 percent of world energy consumed.

The cumulative production, about 65 percent of the EUR, has been recovered so far in North America while
only 28 percent of the Organization of Petroleum Exporting Countries’ (OPEC) crude oil EUR of 206 billion
tonnes has been recovered so far. OPEC has about 76 percent of global reserve of which 61 percent is found in
the Persian Gulf region. Crude oil production in 2009 was about 3.82 billion tonnes, about 2.3% less than the
all-time maximum rate in 2006. Cumulative crude oil production to 2007 amounted to 150 billion tonnes, half
of it produced in the last 25 years which means that based on the current estimates 38 percent of the total reserve
of conventional oil has been consumed. Within 10-15 years, the remaining potential for conventional crude oil
will provide a moderate increase in oil consumption.

Analysis of the world oil situation indicates world oil reserve additions and production are rising in all regions
except North American corresponding to a time when production and reserve growth in North America has
leveled or turned downward. (Figure 14) Over the last 20 year period to 2009 reserves increased at a rate of
1.51 barrels oil added per each barrel of oil produced. In 2009, world oil reserves stood at about 1,332 billion
bbls. While annual production was about 29.2 billion barrels, compared to 1990 when reserves were 1,003
billion bbls., while annual production was 23.9 billion bbls. This indicates that reserve additions have grown by
32.0 percent over twenty years while the production rate increased only 22.2 percent over the same period
leading to the conclusion that on a worldwide basis, and unlike in North America, a world “peak oil” crisis is not
seen. In terms of years in the future, the worlds’ forward oil reserve increased from 41.9 years in 1990 to 45.6
years in 2009.76

A bright spot in this picture is the resource of extra heavy crude oil and bitumen from oil sand deposits not
considered a part of conventional oil resources. Sixty percent of the world’s bitumen resource from oil sands of
170.4 billion tonnes77 (1,244 billion barrels) are present in Alberta’s oil sand deposits (Figure 4). Canada’s oil
sands are the second largest bitumen resource in the world compared to Saudi Arabia’s conventional resource.
About 600 million tonnes (0.26%) of Canada’s heavy oil have been recovered so far by open pit mining
methods. Kazakhstan and the Russian Federation hold most of the remaining bitumen resource.

Heavy oil is another unconventional oil resource. Venezuela holds more than 95 percent of the world’s extra
heavy oil resource of more than 68378 billion tonnes (4,986 billion barrels) or about double the conventional oil
resource of Saudi Arabia. To date, Venezuela has produced about 1.9 billion tonnes (13.8 billion barrels) by
special production methods through well bores. Refineries along the Gulf Coast of the United States, in addition
to refineries in China, are specially constructed to process Venezuela’s extra heavy crude oil imports.

74
http://www.worldenergy.org/publications/survey_of_energy_resources_2010/crude_oil_and_natural_gas_liquids/638.asp
75
http://www.bp.com/statisticalreview
76
BP Statistical review of world energy, 2010
77
http://www.energy.alberta.ca/OilSands/791.asp
78
Oil and Gas Journal, Orinoco’s recoverable figure 513 billion bbl, USGS says, Feb. 15 , 2010, p. 36
Introduction
38 COAL COST GUIDE Copyright © 2011 InfoMine USA, Inc.
The price of a barrel of crude oil climbed over the six-year period from US$22 in late 2002 to a high of US$147
in mid-2008 as the US dollar weakened against other currencies. The price of crude oil plummeted to about
US$37 to $44 at the end of 2008 and settled in the range of about $85-$90 late in 2010 as the US dollar
strengthened and over-supply increased79.

Figure 13. Distribution of the estimated ultimate recovery of conventional crude oil in 2005

79
http://www.worldenergy.org/publications/survey_of_energy_resources_2010/crude_oil_and_natural_gas_liquids/default.asp
Introduction
Copyright © 2011 InfoMine USA, Inc. COAL COST GUIDE 39
Figure 14. Chart showing world oil reserve (bar symbol), production (shaded symbol)
and year-to-year net reserve growth (open circle symbol)

Introduction
40 COAL COST GUIDE Copyright © 2011 InfoMine USA, Inc.
APPENDIX 1

Table 7. Standard classification of coals by rank (A.S.T.M. D388 – 05)80 81

Calorific Requisite
Limits of fixed Volatile Vitrinite
Class Group Value, physical
carbon, % *** matter, % *** reflectance, % ****
B.T.U./lb ** properties
Meta-anthracite * >98 percent <2 percent --

I Anthracite 92-98 2-8 -- 6.55 Nonagglomerating


Anthracite

Semi-anthracite 86-92 8-14 -- 2.65

Low-volatile
78- 86 14-22 -- 1.85
bituminous

Medium-volatile
69-78 22-31 -- 1.49
bituminous

Either
II High-volatile A
<69 >31 >14,000 ** agglomerating or
Bituminous bituminous nonweathering

High-volatile B
-- -- 13,000-14,000 0.97
bituminous

High-volatile C
-- -- 11,500-13,000
bituminous

Subbituminous A
-- -- 10,500-11,500
coal
Both weathering
III Subbituminous B
-- -- 9,500-10,500 0.6 and
Subbituminous coal
nonagglomerating
Subbituminous C
-- -- 8,300-9,500
coal

Lignite A -- -- 6,300-8,300 0.5 Consolidated


IV
Lignite Brown coal,
-- -- <6,300 0.4 Unconsolidated
lignite B

* Coals having 69 percent or more fixed carbon (F.C.) on the dry, mineral-matter-free basis are classified according to fixed carbon
regardless of B.t.u. **Moist B.t.u. refers to coal having its natural bed moisture but not including visible water on the surface of the
coal. Reported on a moist, mineral-matter-free basis *** Report on a dry, mineral-matter-free basis **** Not a part of ASTM D-
82
388-05, included for comparison purpose only. See also: Standard terminology for coal and coke (A.S.T.M. D121)

80
http://www.astm.org/Standards/D388.htm
81
Thomas, L., Coal Geology: John Wiley and Sons
82
http://www.astm.org/Standards/D121.htm
Introduction
Copyright © 2011 InfoMine USA, Inc. COAL COST GUIDE 41

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