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 2011 Coal Cost Guide
Section CI
Cost Indexes & Coal Prices
January 2011
CONTENTS Compiled by Dave Boleneus
Page Page
Cost Indexes Coal Prices (continued)
Table 1: Coal Cost Index Names and Uses . . . 2 Prices by Coal Region . . . . . . . . . . . . . . . . . . . . . . 8

Table 2: Coal Mining and Processing Cost Figure 1: U.S. Coal Prices by Rank,
Indexes . . . . . . . . . . . . . . . . . . . . . . . 3 1949 - present . . . . . . . . . . . . . . . . . . . 9

Table 3: Consumer Price Indexes (U.S. & Canada) Figure 2: U.S. Coal Price by Producing State . . 9
and Producer Price Index (U.S.) . . . . 5
Figure 3: U.S. Coal Spot Price by Region,
Table 4: Coal Cost Guide (CCG) Indexes December 2000 - present . . . . . . . . . 10
- Canada . . . . . . . . . . . . . . . . . . . . . 6
Table 6: U.S. Coal Prices by Rank,
Table 5: Coal Cost Guide (CCG) Indexes 1949 - present . . . . . . . . . . . . . . . . . . 11
- U.S. . . . . . . . . . . . . . . . . . . . . . . . . 7
Table 7: U.S. Coal Spot Prices by Region,
Coal Prices 2001 - present . . . . . . . . . . . . . . . . . . 12
Price By Rank . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Prices by Producing State (U.S.) . . . . . . . . . . . 8

COST INDEXES

Cost indexes provide a mechanism for adjusting
outdated cost information and for tracking cost
inflation in the mining industry. Table 1 lists a variety
of definitions of indexes for specific mining cost
centers and provides some guidance for their use.
Table 2 lists current and historical values for these
indexes. Table 3 lists U.S. Producer Price Indexes and
Consumer Price Indexes. These are generally
recognized as reliable measures of general inflation in
the U.S. economy, and they serve as a comparison to
the inflation experienced by the mining industry.
Tables 4 and 5 list the Coal Cost Guide (CCG)
indexes for the Canadian and U.S. mining industries.
These are internally generated indexes that provide a
reliable means for tracking the cumulative effect of
cost inflation on coal mining projects.
To use the indexes for estimating the cost of an
item at one point in time using a known cost for the
item from another point in time, simply multiply the
known cost times the index for the desired time divided
by the index for the time at which the cost is known.

Example:
If a battery locomotive cost US$90,000 in 2001, what would be its estimated cost for 2006?

2006 Cost = 2001 cost x

2006 cost index
2001 cost index
From Table 2, cost index C, "Machinery and Equipment":

2006 cost index = 175.4

2001 cost index = 149.1

2006 cost = US$90,000 x 175.4

149.1
2006 cost = US$105,875

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Copyright © January 2011 InfoMine USA, Inc. COAL COST GUIDE 1
 TABLE 1. Coal Cost Index Names and Uses
2
CI

Coal Cost Coal Cost Bureau of Labor

Guide Guide Statistics Index
Index Code Index Name Uses Code and Name

A Mine Labor Mine and mill operating labor NAICS Code 212 Average Hourly Earnings of Production Workers:
Mining Except Oil and Gas

B Construction Labor Mill construction labor NAICS Code 23, Average Hourly Earnings of Production Workers:
Construction

C Machinery and Equipment Machinery, heavy equipment, repair parts 112 Construction machinery and equipment

D Iron and Steel Drill bits and steel, mill balls, rods and 101 Iron and steel
liners, track

E Timber Mine timber 0811 Softwood lumber

COAL COST GUIDE

F Petroleum Products Gasoline, diesel, propane, fuel oil, 057 Petroleum products, refined
and lubricants

G Explosives Explosives and accessories 067902 Explosives

H Tires Tires for trucks, scrapers, loaders, etc. 07120105 Truck/Bus Tires, including off-highway

I Industrial Commodities Miscellaneous materials and supplies not Producer Price Index, 03 through 15 Industrial Commodities
otherwise covered

J Electric Power Electric power 0543 Industrial Power, 500 KW demand

K Industrial Chemicals Mill reagents, mining chemicals 061 Industrial chemicals

L Coal Coal fuel 051 Coal

M Natural Gas Natural gas fuel 0531 Natural gas

Copyright © January 2011 InfoMine USA, Inc.

N Line-haul Railroads (All services) RR transportation - general 482111 Line-haul railroads

O Line-haul RR Freight Carload RR transportation - freight carload 4821111 Rail transportation, freight (Carload)

P Deep Sea Freight Ocean transportation 483111 Deep sea freight transportation

Q Inland Water Freight Inland transportation 483211 Inland water transportation

R Port and Harbor Operations Port use, Transportation 488310 Port and harbor operations

NAICS North American Industry Classification System

TABLE 2. Coal Mining and Processing Cost Indexes
Source U.S. Department of Labor, Bureau of Labor Statistics Note: All indexes are subject to revision four months after original publication.

A B C D E F G H I
Year/ Coal Construction Machinery & Iron Petroleum Industrial
Month Labor Labor Equipment & Steel Timber Products Explosives Tires Commodities

1965 --- 3.23 27.2 28.9 28.9 12.3 33.3 36.4 30.9
1966 --- 3.41 28.1 29.1 30.4 12.8 32.8 37.3 31.5
1967 --- 3.63 29.1 29.5 31.1 13.1 33.5 36.8 32.0
1968 --- 3.92 30.7 30.1 37.5 12.9 34.2 37.8 32.8
1969 --- 4.30 32.1 31.6 41.8 13.1 35.0 36.2 33.9
1970 --- 4.74 33.7 34.0 35.2 13.3 35.7 38.8 35.2
1971 --- 5.17 35.4 35.9 44.0 14.1 37.9 40.6 36.5
1972 --- 5.55 36.6 37.9 52.1 14.3 38.5 41.0 37.8
1973 --- 5.89 38.0 40.2 66.6 16.9 40.2 42.6 40.3
1974 --- 6.29 44.3 52.7 65.7 29.3 50.2 52.1 49.2
1975 --- 6.78 53.9 59.3 62.4 33.8 59.5 57.2 54.9
1976 --- 7.17 57.8 63.7 77.1 36.3 62.6 63.6 58.4
1977 --- 7.56 62.1 68.0 92.5 40.5 64.9 66.9 62.5
1978 --- 8.11 67.7 74.8 107.6 42.2 69.8 70.7 67.1
1979 --- 8.71 74.5 83.6 118.1 58.4 75.5 80.9 75.7
1980 --- 9.37 84.2 90.0 107.3 88.6 84.0 92.1 88.0
1981 --- 10.24 93.3 98.5 106.6 105.9 96.7 99.5 97.4
1982 --- 11.04 100.0 100.0 100.0 100.0 100.0 100.0 100.0
1983 --- 11.36 102.3 101.3 115.0 89.9 101.1 95.7 101.1
1984 --- 11.56 103.8 105.3 110.0 87.4 103.6 93.4 103.3
1985 --- 11.75 105.4 104.8 107.4 83.2 105.0 90.5 103.7
1986 --- 11.92 106.7 101.1 108.4 53.2 103.6 88.0 100.0
1987 --- 12.15 108.9 104.6 116.1 56.8 107.3 87.7 102.6
1988 --- 12.52 111.8 115.7 112.4 53.9 109.0 92.5 106.3
1989 --- 12.98 117.2 119.1 127.1 61.2 117.6 96.3 111.6
1990 15.47 13.42 121.6 117.2 123.8 74.8 125.6 93.8 115.8
1991 15.96 13.65 125.2 114.1 125.7 67.2 132.1 95.7 116.5
1992 16.11 13.81 128.7 111.5 148.6 64.7 132.0 96.3 117.4
1993 16.08 14.04 132.0 116.0 183.4 62.0 132.6 95.3 118.9
1994 16.67 14.38 133.7 122.0 198.1 59.1 139.5 93.8 120.7
1995 17.15 14.73 136.7 128.8 178.5 60.8 144.2 93.0 125.5
1996 17.51 15.11 139.8 125.8 189.5 70.1 146.4 90.6 127.3
1997 17.85 15.67 142.2 126.5 206.5 68.0 149.1 89.0 127.7
1998 18.08 16.23 145.2 122.5 182.7 51.3 147.4 89.6 124.8
1999 18.04 16.80 147.2 114.0 196.0 60.9 144.7 88.8 126.5
2000 18.07 17.48 148.6 116.6 178.6 91.3 136.9 89.0 134.8
2001 18.22 18.00 149.1 109.7 170.1 85.3 142.8 89.5 135.7
2002 18.61 18.52 151.1 114.1 170.8 79.5 147.8 90.5 132.4
2003 19.14 18.95 153.2 121.5 170.8 97.7 156.0 93.7 139.1
2004 19.85 19.23 158.5 162.4 209.8 119.9 168.9 98.3 147.6
2005 20.20 19.46 168.3 171.1 203.6 165.0 172.5 103.3 160.2
2006 20.59 20.02 175.4 186.5 189.4 193.2 179.9 106.7 168.8
2007 20.77 20.95 179.6 201.1 170.5 214.2 184.3 110.1 175.1
2008 22.01 21.87 185.3 246.4 156.3 271.7 201.2 120.8 192.4
2009 23.38 22.67 191.0 184.0 141.4 175.5 198.1 121.6 174.8
2010 --- 23.26 191.4 223.9 160.9 225.3 188.8 129.7 187.1
2010-Jan. 24.47 23.00 191.0 205.6 151.3 222.7 188.2 125.0 184.6
2010-Feb. 24.60 23.03 190.9 210.8 163.7 205.8 188.5 125.1 183.6
2010-Mar. 24.27 23.04 190.8 220.6 166.7 222.5 191.5 125.1 185.6
2010-Apr. 24.36 22.99 191.4 232.0 175.4 231.6 189.3 127.0 187.0
2010-May 23.95 23.05 190.7 235.5 180.1 229.0 190.7 127.0 187.2
2010-June 24.02 23.03 191.0 233.5 162.9 216.9 190.5 131.0 186.4
2010-July 24.53 23.26 190.9 224.8 158.0 217.0 191.3 131.0 186.7
2010-Aug. 24.29 23.39 191.4 221.9 153.9 222.9 182.9 131.0 187.5
2010-Sept. 25.06 23.36 192.2 225.6 152.9 219.4 188.6 131.0 187.0
2010-Oct. 24.67 23.57 192.1 223.8 151.2 231.8 191.1 133.6 188.7
2010-Nov. 25.00 23.57 191.4 223.6 154.5 237.6 183.0 135.1 189.7
2010-Dec. --- 23.64 192.7 228.7 159.7 246.1 190.3 135.1 191.5

Note: Beginning with the August 2005 update, the bases for the Mine Labor and Construction Labor indexes are changed to conform to new
U.S. Bureau of Labor Statistics’ occupational classifications which were developed to conform to NAICS standards. The values listed
for these indexes in the August 2005 and subsequent updates are not compatible with values listed in previous updates. Data for
NAICS Code 212, Average Hourly Earnings of Production Workers: Mining, Except Oil and Gas, prior to 1990 is not available.

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Copyright © January 2011 InfoMine USA, Inc. COAL COST GUIDE 3
TABLE 2. Coal Mining and Processing Cost Indexes (continued)
Source U.S. Department of Labor, Bureau of Labor Statistics Note: All indexes are subject to revision four months after original publication.

J K L M N O P Q R S
Transportation
Line-Haul Line Haul Inland Port and
Year/ Electric Industrial Natural Railroads RR Freight RR Deep Sea Water Harbor
Month Power Chemicals Coal Gas (All services) (Carload) Coal Freight Freight Operations

1965 21.2 27.7 17.5 --- --- --- --- --- --- ---
1966 21.1 27.9 17.9 --- --- --- --- --- --- ---
1967 21.1 28.4 18.7 --- --- --- --- --- --- ---
1968 21.3 28.6 19.4 7.6 --- --- --- --- ---
1969 21.6 28.4 21.1 7.7 26.7 --- 24.8 --- --- ---
--- ---
1970 22.5 28.6 28.1 7.9 29.1 --- 26.9 --- --- ---
1971 24.8 28.9 34.0 8.4 32.7 --- 30.7 --- --- ---
1972 26.2 28.7 36.2 9.0 33.7 --- 31.9 --- --- ---
1973 28.0 29.3 40.8 9.8 34.5 --- 32.8 --- --- ---
1974 36.4 43.0 62.2 11.6 40.0 --- 38.3 --- --- ---
1975 44.3 58.7 71.2 16.1 45.3 --- 44.0 --- --- ---
1976 47.9 62.2 68.9 21.8 49.8 --- 49.4 --- --- ---
1977 54.3 63.5 72.8 30.8 53.2 --- 52.4 --- --- ---
1978 59.1 64.0 80.4 36.5 56.9 --- 56.5 --- --- ---
1979 64.5 74.9 84.3 47.6 65.0 --- 65.9 --- --- ---

1980 77.8 91.9 87.4 63.3 75.9 --- 75.8 --- --- ---
1981 89.2 103.1 93.0 82.1 87.4 --- 86.9 --- --- ---
1982 100.0 100.0 100.0 100.0 93.7 --- 95.4 --- --- ---
1983 103.1 97.3 100.5 106.6 95.0 --- 96.5 --- --- ---
1984 108.4 96.8 102.2 106.1 99.3 --- 99.9 --- --- ---
1985 112.8 96.0 102.2 102.9 99.9 --- 100.0 --- --- ---
1986 114.5 91.5 100.8 89.6 100.7 --- 100.7 --- --- ---
1987 111.9 95.5 97.1 79.5 100.1 --- 100.1 100.0 --- ---
1988 112.6 106.8 95.4 77.4 104.8 --- 104.3 103.3 --- ---
1989 116.2 114.8 95.5 82.0 106.4 --- 105.3 106.3 --- ---

1990 119.6 113.2 97.5 80.4 107.5 --- 104.2 113.1 100.0 ---
1991 128.1 111.8 97.2 79.1 109.3 --- 105.2 119.5 99.2 ---
1992 129.6 109.3 95.0 80.6 109.9 --- 105.9 116.4 97.7 ---
1993 130.6 110.4 96.1 84.7 110.9 --- 106.6 115.9 95.8 ---
1994 129.2 114.3 96.7 78.8 111.8 --- 107.5 114.4 98.5 ---
1995 130.8 128.4 95.0 66.6 111.7 --- 107.3 113.3 114.6 ---
1996 131.6 126.7 94.5 91.2 111.5 100.0 106.7 114.1 109.9 ---
1997 130.8 126.4 96.3 101.7 112.1 100.4 107.0 113.1 105.9 ---
1998 130.0 121.4 93.6 83.9 113.4 101.4 108.7 116.7 106.8 ---
1999 128.9 118.9 90.7 91.2 113.0 100.5 107.3 134.0 111.2 ---

2000 131.5 129.1 87.9 155.5 114.5 101.9 108.7 155.8 117.9 ---
2001 141.1 128.4 96.2 171.8 116.6 104.1 110.6 172.2 123.4 ---
2002 139.9 127.3 99.8 122.5 118.9 106.3 110.1 185.8 120.6 ---
2003 145.8 141.7 99.9 214.5 121.4 109.0 111.4 219.9 124.7 100.0
2004 147.2 162.8 109.2 245.9 126.5 114.7 114.6 225.9 131.0 102.4
2005 156.2 188.5 116.8 335.4 139.6 128.1 --- 231.9 151.4 105.9
2006 172.8 212.4 126.5 280.3 151.6 139.2 --- 233.3 182.9 108.8
2007 180.4 226.4 130.7 273.8 157.2 144.0 --- 230.0 186.1 114.9
2008 189.3 274.6 161.7 344.0 175.7 160.8 --- 258.3 218.3 117.7
2009 190.6 234.1 182.5 160.0 165.6 152.7 --- 218.8 211.4 120.5
2010 193.3 268.7 189.4 185.1 174.2 160.6 --- 244.0 215.5 127.2

2009-Oct. 189.9 243.2 180.3 154.0 167.7 154.5 --- 217.9 213.0 121.4
2009-Nov. 186.0 247.0 180.4 181.5 168.2 154.9 --- 219.0 217.8 121.5
2009-Dec. 186.0 254.6 182.5 195.1 168.3 155.1 --- 221.2 213.2 121.5

2010-Jan. 186.3 261.7 186.7 244.4 170.4 157.0 --- 227.2 215.3 121.8
2010-Feb. 186.1 269.4 187.2 231.2 171.2 157.9 --- 229.5 212.8 121.8
2010-Mar. 189.0 273.1 188.1 204.3 172.5 159.0 --- 229.5 208.2 125.5
2010-Apr. 188.8 275.1 188.7 168.8 172.7 159.1 --- 236.9 208.5 125.5
2010-May 192.0 271.9 189.4 175.8 174.7 160.9 --- 244.2 213.4 125.5
2010-June 197.8 264.1 190.3 178.0 176.1 162.4 --- 247.8 212.2 125.6
2010-July 199.8 257.8 190.1 195.4 175.9 162.2 --- 254.6 218.0 131.0
2010-Aug. 200.8 260.7 191.9 194.3 174.3 161.1 --- 254.6 222.3 131.0
2010-Sept. 199.7 264.1 189.6 157.4 174.9 161.3 --- 248.0 225.4 125.5
2010-Oct. 194.7 267.6 190.5 161.6 175.4 161.7 --- 248.0 228.8 131.2
2010-Nov. 192.9 276.0 190.3 138.8 175.6 161.7 --- 254.9 209.3 131.3
2010-Dec. 191.3 282.8 189.7 171.3 176.9 162.9 --- 252.8 211.4 131.3

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4 COAL COST GUIDE Copyright © January 2011 InfoMine USA, Inc.
TABLE 3. Consumer Price Indexes (U.S. & Canada) and Producer Price Index (U.S.)
Source U.S. Department of Labor, Bureau of Labor Statistics (U.S.), and Statistics Canada.

CPI-U All Items CPI-U All Items

PPI (U.S.) (U.S.) CPI PPI (U.S.) (U.S.) CPI
Year (1982=100) (1982-84=100) (Canada) Year/Month (1982=100) (1982-84=100) (Canada)

1952 29.6 26.5 14.2 2006-June 166.1 202.9 109.5

1953 29.2 26.7 14.0 2006-July 166.8 203.5 109.6
1954 29.3 26.9 14.1 2006-Aug. 167.9 203.9 109.8
1955 29.3 26.8 14.1 2006-Sept. 165.4 202.9 109.2
1956 30.3 27.2 14.3 2006-Oct. 162.2 201.8 109.0
1957 31.2 28.1 14.8 2006-Nov. 164.6 201.5 109.2
1958 31.6 28.9 15.2 2006-Dec. 165.6 201.8 109.4
1959 31.7 29.1 15.3
1960 31.7 29.6 15.5 2007-Jan. 164.0 202.4 109.4
1961 31.6 29.9 15.7 2007-Feb. 166.8 203.5 110.2
1962 31.7 30.2 15.9 2007-Mar. 169.3 205.4 111.1
1963 31.6 30.6 16.1 2007-Apr. 171.4 206.7 111.6
1964 31.6 31.0 16.4 2007-May 173.3 207.9 112.1
1965 32.3 31.5 16.8 2007-June 173.8 208.4 111.9
1966 33.3 32.4 17.5 2007-July 175.1 208.3 112.0
1967 33.4 33.4 18.1 2007-Aug. 172.4 207.9 111.7
1968 34.2 34.8 18.8 2007-Sept. 173.5 208.5 111.9
1969 35.6 36.7 19.7 2007-Oct. 174.7 208.9 111.6
1970 36.9 38.8 20.3 2007-Nov. 179.0 210.2 111.9
1971 38.1 40.5 20.9 2007-Dec. 178.6 210.0 112.0
1972 39.8 41.8 21.9
1973 45.0 44.4 23.6 2008-Jan. 181.0 211.1 111.8
1974 53.5 49.3 26.2 2008-Feb. 182.7 211.7 112.2
1975 58.4 53.8 29.0 2008-Mar. 187.9 213.5 112.6
1976 61.1 56.9 31.1 2008-Apr. 190.9 214.8 113.5
1977 64.9 60.6 33.6 2008-May 196.6 216.6 114.6
1978 69.9 65.2 36.6 2008-June 200.5 218.8 115.4
1979 78.7 72.6 40.0 2008-July 205.5 220.0 115.8
1980 89.8 82.4 44.0 2008-Aug. 199.0 219.1 115.6
1981 98.0 90.9 49.5 2008-Sept. 196.9 218.8 115.7
1982 100.0 96.5 54.9 2008-Oct. 186.4 216.6 114.5
1983 101.3 99.6 58.1 2008-Nov. 176.8 212.4 114.1
1984 103.7 103.9 60.6 2008-Dec. 170.9 210.2 113.3
1985 103.2 107.6 63.0
1986 100.2 109.6 65.6 2009-Jan. 171.2 211.1 113.0
1987 102.8 113.6 68.5 2009-Feb. 169.3 212.2 113.8
1988 106.9 118.3 71.2 2009-Mar. 168.1 212.7 114.0
1989 112.2 124.0 74.8 2009-Apr. 169.1 213.2 113.9
1990 116.3 130.7 78.4 2009-May 170.8 213.9 114.7
1991 116.5 136.2 82.8 2009-Jun. 174.1 215.7 115.1
1992 117.2 140.3 84.0 2009-July 172.5 215.4 114.7
1993 118.9 144.5 85.6 2009-Aug. 175.0 215.8 114.7
1994 120.4 148.2 85.7 2009-Sept. 174.1 216.0 114.7
1995 124.7 152.4 87.6 2009-Oct. 175.2 216.2 114.6
1996 127.7 156.9 88.9 2009-Nov. 177.4 216.3 115.2
1997 127.6 160.5 90.4 2009-Dec. 178.1 215.9 114.8
1998 124.4 163.0 91.3
1999 125.5 166.6 92.9 2010-Jan. 181.9 216.7 115.1
2000 132.7 172.2 95.4 2010-Feb. 181.0 216.7 115.6
2001 134.2 177.1 97.8 2010-Mar. 183.3 217.6 115.6
2002 131.1 179.9 100.0 2010-Apr. 184.4 218.0 116.0
2003 138.1 184.0 102.8 2010-May 184.8 218.2 116.3
2004 146.7 188.9 104.7 2010-Jun. 183.5 218.0 116.2
2005 157.4 195.3 107.0 2010-July 184.1 218.0 116.8
2006 164.7 201.6 109.1 2010-Aug. 184.9 218.3 116.7
2007 172.6 207.3 111.5 2010-Sept. 185.1 218.4 116.9
2008 189.6 215.3 114.1 2010-Oct. 186.8 218.7 117.4
2009 172.9 214.5 114.4 2010-Nov. 188.0 218.8 117.5
2010 184.8 218.1 116.5 2010-Dec. 189.9 219.2 117.5
Definitions:
Producer Price Index (PPI) (U.S.)
The Producer Price Index measures average changes in prices received by domestic producers of commodities at all stages of processing (all commodities). Imports
are not included. (Base year: 1982=100)
Consumer Price Index (CPI-U) (U.S.)
The Consumer Price Index is a measure of the average change over time in the prices of all items, including commodities, goods and services purchased by urban
consumers in the U.S. (Base years: 1982-1984 = 100)
Consumer Price Index (Canada-wide)
Canada’s non-seasonally-adjusted CPI indicates change in consumer prices based on a fixed basket of commodities from a target population of families and
individuals living in urban and rural private households. It is not a cost-of-living index. The basket of items, includes food, shelter, household operations and
furnishings, clothing, transportation, health and personal care, recreation and education, alcohol and tobacco, durable, semi-durable, and non-durable goods,
services, and energy (http://www.bankofcanada.ca/en/cpi.htm).
Note: All indexes are subject to revision by the Bureau of Labor Statistics or Statistics Canada four months after original publication. P-preliminary

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Copyright © January 2011 InfoMine USA, Inc. COAL COST GUIDE 5
TABLE 4. Coal Cost Guide (CCG) Indexes - CANADA

Surface Mine Underground Mine Processing/Preparation

Capital Operating Capital Operating Capital Operating

Year Cost Index Cost Index Cost Index Cost Index Cost Index Cost Index

1991 92.8 94.2 96.3 104.5 91.6 89.0

1992 92.8 94.1 96.6 105.9 92.7 90.1
1993 92.8 94.6 97.6 108.5 94.7 93.0
1994 94.7 97.1 100.4 112.4 97.2 96.7
1995 97.3 100.3 104.0 117.2 100.8 101.6
1996 99.5 103.2 106.1 119.5 101.6 102.7
1997 100.7 103.5 106.9 119.5 102.7 102.5
1998 102.4 104.1 108.7 122.7 103.0 102.9
1999 103.8 103.9 109.6 122.0 103.8 103.4
2000 106.5 109.9 112.7 124.5 106.9 107.7
2001 106.6 111.7 114.1 128.3 106.3 112.6
2002 107.6 111.1 115.1 129.4 109.2 113.4
2003 107.4 114.4 115.1 130.3 109.9 116.7
2004 110.1 125.0 120.2 138.5 113.5 120.8
2005 113.6 133.7 124.6 142.5 117.2 127.9
2006 115.7 136.5 126.2 142.5 118.5 128.2
2007 118.6 142.2 130.0 148.7 121.2 134.5
2008 126.3 159.2 139.5 158.6 129.0 142.5
2009 125.4 145.3 136.3 155.8 130.4 136.5
2010 125.7 148.1 137.8 158.4 130.5 141.6
2009-Mar. 126.6 147.5 137.8 160.0 132.8 137.7
2009-Apr. 126.2 146.6 137.0 157.9 132.0 136.3
2009-May 125.2 143.7 135.1 154.2 129.5 134.6
2009-June 125.3 143.6 134.5 150.7 128.3 132.5
2009-July 125.0 143.0 134.3 151.0 127.9 132.3
2009-Aug. 123.9 140.8 134.8 151.9 126.9 134.0
2009-Sept. 124.3 142.5 135.7 155.0 128.5 135.5
2009-Oct. 123.7 139.6 133.6 148.8 128.9 131.6
2009-Nov. 125.0 145.9 136.6 156.1 129.2 138.1
2009-Dec. 125.9 148.1 138.1 160.1 133.5 143.1
2010-Jan. 125.9 150.7 138.9 162.3 130.3 144.7
2010-Feb. 125.2 146.8 137.1 157.9 131.2 142.1
2010-Mar. 125.7 149.4 138.0 160.2 130.4 143.5
2010-Apr. 124.7 144.8 135.7 153.0 129.8 137.5
2010-May 125.1 145.6 136.6 155.6 130.8 139.9
2010-June 124.9 144.6 136.1 154.7 129.5 137.7
2010-July 124.9 144.5 136.4 155.5 128.7 139.0
2010-Aug. 125.3 146.4 137.9 159.0 128.8 141.9
2010-Sept. 126.4 151.1 139.7 163.5 130.4 145.1
2010-Oct. 125.9 148.7 137.7 157.1 130.4 140.0
2010-Nov. 126.8 151.3 139.8 160.9 132.4 143.1
2010-Dec. 127.4 153.7 140.3 161.5 132.7 144.5

Statistics Canada (STATCAN) has converted its data classifications to the North American Industry Classification System (NAICS). All indexes are subject
to revision by Statistics Canada four months after original publication. The InfoMine Canada CCG indexes are composite indexes representing the cost of
developing and operating a typical coal mine and preparation plant operation in Canada. Separate indexes are listed for surface mine capital costs, surface mine
operating costs, underground mine capital costs, underground mine operating costs, processing capital costs, and processing operating costs. Composite
proportions are determined from base model estimates with cost distributions listed in the Coal Cost Guide (printed version). The surface mine base model
is a typical truck-dragline-excavator operation mining 45,000 short tons (40,800 tonnes) coal per day. The underground mine base model is a 8,000 short tons
(7,258 tonnes) per day longwall operation using using continuous miner development and ramp access and LHD-conveyor haulage. The plant base model is
a 1,400 short tons (1,270 tonnes) per day heavy media operation. Notice about a change in basis: On January 2009 and again in October 2010, STATCAN
changed the basis and reporting method for indexes causing all historic and current indexes to change. As a result, starting October 2010, all surface mining,
underground mining and processing/preparation indexes followed by InfoMine USA, Inc. were also re-calculated and restated.
Surface Mine Underground Mine Plant

Capital Costs Operating Costs Capital Costs Operating Costs Capital Costs Operating Costs

Proportion Proportion Proportion Proportion Proportion Proportion

Component (%) Component (%) Component (%) Component (%) Component (%) Component (%)

Mine Equipment 73.5 Labor 29.8 Mine Equipment 47.3 Labor 33.3 Equipment 33.8 Labor 34.4
Labor 3.6 Fuel 9.3 Preprod. Devel. 18.1 Equipment Parts 9.3 Tailings Pond CNI Reagents 23.6
Preprod. Strip. 9.3 Lube 3.8 Surface Facilities Pipe 1.2 Buildings & Eq. Installation Electricity 24.8
Steel 0.2 Electrical 6.3 Electrical 1.7 Concrete, Limestone 3.6 Concrete 2.8 Parts 15.2
Concrete 0.1 Parts 9.3 Concrete 1.4 Rock bolts, Brattice 12.0 Steel 11.0 Lube 1.0
Constr. Materials 0.4 Tires 5.3 Steel 1.4 Bits, Teeth, Steel 7.2 Constr. Materials 3.9 Fuel 1.0
Fuel, Lube, Parts 0.0 Explosives 19.4 Constr. Materials 3.4 Electrical 16.8 Constr. Labor 35.6 100.0
ECM, WC 13.0 Bits, Steel 16.9 Labor 1.4 Parts, Misc. 4.5 Construction Equip. Operation
100.0 100.0 Parts 5.5 Lube, Fuel, Misc. 2.4 Parts 0.4
ECM, WC 19.7 Office, Admin. 9.6 Fuel/Lube 0.7
100.0 100.0 ECM 11.8
100.0

ECM - Engineering and construction management; CNI - Cost not included; WC - Working Capital; column totals may not add to 100.0% due to independent rounding

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6 COAL COST GUIDE Copyright © January 2011 InfoMine USA, Inc.
TABLE 5. Coal Cost Guide (CCG) Indexes - U.S.

Surface Mine Underground Mine Processing/Preparation

Capital Operating Capital Operating Capital Operating

Year Cost Index Cost Index Cost Index Cost Index Cost Index Cost Index
1999 88.4 84.6 90.1 85.5 86.9 84.8
2000 89.4 86.5 91.2 86.4 89.2 87.0
2001 89.4 87.6 92.1 88.0 90.4 89.1
2002 93.9 88.9 92.9 89.4 91.7 89.6
2003 96.6 93.6 94.3 92.5 93.9 94.3
2004 100.0 100.0 100.0 100.0 100.0 100.0
2005 106.0 108.7 106.2 105.6 105.3 107.7
2006 111.4 115.4 111.4 111.6 110.4 116.1
2007 113.9 119.8 115.1 115.8 116.1 120.8
2008 119.3 134.0 124.4 125.7 125.2 133.6
2009 120.7 127.0 128.7 125.4 122.6 130.3
2010 122.2 132.6 132.1 130.4 126.6 138.5
2008-July 121.5 141.6 125.6 127.9 129.4 140.6
2008-Aug. 120.5 136.9 127.0 130.4 130.6 140.2
2008-Sept. 120.8 137.7 128.1 130.3 130.5 140.9
2008-Oct. 120.3 135.7 127.6 129.3 127.8 135.6
2008-Nov. 119.5 131.7 129.0 126.9 124.9 130.4
2008-Dec. 119.0 127.7 128.6 126.1 123.5 126.5
2009-Jan. 120.2 127.9 129.3 127.1 123.2 127.9
2009-Feb. 120.2 125.8 128.6 125.6 122.4 127.6
2009-Mar. 120.3 125.1 128.3 125.1 122.0 127.5
2009-Apr. 120.6 126.3 127.5 123.4 121.1 126.8
2009-May 120.9 126.5 127.3 123.6 121.2 127.9
2009-June 121.3 127.5 127.4 123.4 121.6 129.6
2009-July 121.2 127.1 128.3 125.0 122.3 131.2
2009-Aug. 120.9 126.2 129.0 125.6 123.0 132.2
2009-Sept. 120.1 126.2 129.5 126.6 123.1 133.1
2009-Oct. 120.8 127.5 129.8 126.7 123.9 132.7
2009-Nov. 121.0 128.7 129.4 126.0 123.3 133.9
2009-Dec. 121.0 128.7 129.7 126.8 123.6 134.5
2010-Jan. 121.9 131.2 130.9 128.1 124.6 136.1
2010-Feb. 121.5 129.8 131.3 128.9 125.2 137.2
2010-Mar. 121.8 131.3 131.4 129.0 125.7 137.9
2010-Apr. 121.9 132.3 131.9 129.9 126.5 138.4
2010-May 122.1 131.7 131.9 129.8 127.0 137.7
2010-June 121.7 131.3 132.4 130.7 126.7 137.6
2010-July 122.2 132.2 132.6 131.5 126.8 137.9
2010-Aug. 122.3 132.0 132.4 131.0 127.0 138.2
2010-Sept. 122.5 133.4 133.1 132.6 127.3 139.7
2010-Oct. 122.6 134.2 131.4 128.9 125.7 138.9
2010-Nov. 122.5 135.0 133.0 132.2 128.2 140.8
2010-Dec. 123.0 136.3 133.1 132.4 128.9 141.5

Note: All indexes are subject to revision by Bureau of Labor Statistics four months after original publication. P-preliminary

The U.S. Coal Cost Guide (CCG) indexes are composite indexes representing the cost of developing and operating a typical coal mining and preparation plant
operation in the United States. Separate indexes are listed for surface mine capital costs, surface mine operating costs, underground mine capital costs, underground
mine operating costs, plant capital costs, and plant operating costs. Composite proportions are determined from base model estimates with cost distributions as listed
below. The surface mine base model is a typical truck-dragline-excavator operation mining 45,000 tons (40,800 tonnes) coal per day. The underground mine base
model is an 8,000 ton (7,258 tonnes) per day longwall operation using continuous miner development and ramp access with LHD-conveyor haulage. The plant base
model is a 1,400 ton (1,270 tonnes) per hour heavy media operation.
Surface Mine Underground Mine Plant

Capital Costs Operating Costs Capital Costs Operating Costs Capital Costs Operating Costs

Proportion Proportion Proportion

Proportion Proportion Proportion
Component (%) Component (%) Component (%) Component (%) Component (%) Compon
ent (%)
Dragline/Excav. 50.9 Labor 29.8 Equipment 51.8 Labor 33.3
Trucks 11.5 Fuel 9.3 Proprod. Devel. 18.1 Mine Equipment 9.3 Equipment 33.8 Labor 34.4
Drills, Other 8.6 Lube 3.8 Surface Facilities Pipe 1.2 Tailings Pond CNI Reagents 23.6
Dozers 1.5 Electrical 6.3 Concrete 1.4 Concrete, Limestone 3.6 Buildings and Eq. Install. Electricity 24.8
Labor 3.6 Parts 9.3 Steel 1.4 Rockbolts, Brattice 12.0 Concrete 2.8 Parts 15.2
Preproduction/roads 9.3 Tires 5.3 Constr. Materials 3.4 Bits, Teeth, Steel 7.2 Steel 11.0 Lube 1.0
Steel 0.2 Explosives 19.4 Labor 1.4 Electrical Power 16.8 Constr. Materials 3.9 Fuel 1.0
Constr. Materials 0.5 Bits/Steel 16.9 Parts 2.7 Parts, Machine 4.5 Constr. Labor 35.6 100.0
Other Equipment 1.0 100.0 ECM, WC 14.7 Lube, Fuel, Misc. 2.4 Constr. Eq. Operation
Fuel, Lube 0.0 100.0 Office, Admin. 9.6 Parts 0.4
ECM, WC 13.0 100.0 Fuel, Lube 0.7
100.0 ECM 11.8
100.0

ECM - Engineering and construction management; CNI - Cost not included; WC - Working Capital; column totals may not add to 100.0% due to independent rounding

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Copyright © January 2011 InfoMine USA, Inc. COAL COST GUIDE 7
COAL PRICES

This section compares prices for coal in the United States by coal rank and by coal region. Prices are in US
dollars per metric tonne and not adjusted for inflation (nominal dollars) unless noted otherwise. More
discussion about coal rank, its association with the coal-forming process, and the geographic extent of coal
regions of North America is located in the Introduction section of this guide. The source for coal prices is the
Energy Information Administration of the U.S. Department of Energy.

Price By Rank
Lignite, subbituminous, bituminous, and anthracite are rankings of coal by increasing calorific1 value, and
metamorphism. Actual market prices quoted by rank from 1949 to present appear in Figure 1 as well as in Table
62. Prices are free-on-board (f.o.b.) rail or barge prices at the point of first sale, excluding freight, shipping, and
insurance costs. These prices can be adjusted to remove the effects of inflation of prices. If such adjustment is
made, the price is referred to as a “real” price.

Price By Producing State (US)

Figure 2 illustrates the price of coal for each state in the U.S. that produces coal. Prices represent the average
selling price divided by the total free-on-board value of coal sold. Prices for coal in five states with small
production -- Alaska, Arizona, Kansas, Louisiana, and Mississippi -- have been withheld to avoid disclosing
confidential data. Two other states, Arkansas and Missouri, that produce less than 10,000 tons are not required
to report data. Prices for coal in states of West Virginia, Kentucky, and Pennsylvania are reported separately for
each area of these states because quality of the coal varies between areas. Prices are also reported separately for
Pennsylvania‘s anthracite and bituminous coals.

Price By Coal Region

Regional weekly spot prices for the U.S. coal fields located in the central Appalachian, northern Appalachian,
Illinois Basin, Powder River Basin, and Uinta Basin (includes Wasatch Plateau and Book Cliffs fields) regions
are charted in Figure 3 and listed in Table 7. Prices are highest in both Appalachian coal fields due to the higher
heat and metallurgical values and moderate sulfur content of these coals. The Illinois and Uinta Basin coals are
generally similar in price and heat value but the differences in prices probably reflects the higher sulfur values
for Illinois Basin coals but greater distance to major markets for the low-sulfur Uinta Basin coals. The low price
for low-sulfur subbituminous coals of the Powder River Basin of Montana and Wyoming is attributed to their
lower heat values combined with the greater distance to major U.S. markets. Prices shown are for relatively
high-BTU coal selected from each region for delivery in the quarter following the quote (“prompt
quarter”).

1
Heat value is commonly expressed in British Thermal Units (BTU) per pound
2
http://www.eia.doe.gov/emeu/aer/txt/stb0708.xls
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8 COAL COST GUIDE Copyright © January 2011 InfoMine USA, Inc.
Figure 1.

U.S. Coal
Prices by Rank,
1949 - present

Prices quoted in
nominal U.S.
dollars unless
noted otherwise.
Source:
www.eia.doe.gov

Figure 2.

U.S. Coal
Prices by
Producing State

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Copyright © January 2011 InfoMine USA, Inc. COAL COST GUIDE 9
Figure 3.
U.S. Coal Spot Price by Region, Dec. 2000 - present

Prices quoted in nominal U.S. dollars unless noted otherwise. See Table 7 for data.

Source: www.eia.doe.gov

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10 COAL COST GUIDE Copyright © January 2011 InfoMine USA, Inc.
Table 6. U.S. Coal Prices by Rank, 1949 - Present [Price - US$ per tonne]

Year Lignite Subbituminous Bituminous Anthracite Metallurgical (1)

1949 2.61 --- 5.40 9.81 ---

1950 2.66 --- 5.36 10.30 ---
1951 2.69 --- 5.45 10.96 ---
1952 2.63 --- 5.42 10.56 ---
1953 2.62 --- 5.45 10.88 ---
1954 2.68 --- 5.00 9.66 ---
1955 2.62 --- 4.97 8.82 ---
1956 2.63 --- 5.32 9.18 ---
1957 2.59 --- 5.61 10.04 ---
1958 2.59 --- 5.37 10.08 ---
1959 2.48 --- 5.28 9.42 ---
1960 2.52 --- 5.19 8.83 ---
1961 2.47 --- 5.07 9.10 ---
1962 2.46 --- 4.96 8.81 ---
1963 2.39 --- 4.85 9.52 ---
1964 2.36 --- 4.92 9.84 ---
1965 2.35 --- 4.91 9.38 ---
1966 2.18 --- 5.03 8.91 ---
1967 2.12 --- 5.11 8.98 ---
1968 1.97 --- 5.18 9.68 ---
1969 2.05 --- 5.53 10.92 ---
1970 2.05 --- 6.94 12.16 ---
1971 2.13 --- 7.86 13.32 ---
1972 2.25 --- 8.58 13.67 ---
1973 2.30 --- 9.60 15.05 ---
1974 2.41 --- 17.65 24.46 ---
1975 3.49 --- 21.81 35.56 ---
1976 4.12 --- 22.17 37.39 ---
1977 4.44 --- 22.70 38.43 ---
1978 6.26 --- 24.96 38.86 ---
1979 7.14 10.53 30.10 45.26 ---
1980 8.38 12.21 32.15 46.86 ---
1981 9.76 13.43 34.73 48.81 ---
1982 10.79 14.74 35.44 54.95 ---
1983 10.92 14.36 34.29 57.64 ---
1984 11.52 13.68 33.76 53.15 ---
1985 11.77 13.86 33.93 50.49 ---
1986 11.73 13.51 31.79 48.63 ---
1987 11.96 12.48 31.07 48.12 ---
1988 11.09 11.52 30.49 48.68 ---
1989 10.92 11.20 30.20 47.32 ---
1990 11.17 10.69 30.24 43.43 ---
1991 12.00 10.67 30.30 40.06 ---
1992 11.92 10.67 29.52 37.74 ---
1993 12.25 10.28 28.83 36.31 ---
1994 11.87 9.23 28.31 39.76 ---
1995 11.94 8.93 28.17 43.85 ---
1996 12.04 8.68 27.74 40.54 ---
1997 12.03 8.18 27.16 38.71 ---
1998 12.21 7.67 27.41 47.30 ---
1999 12.17 7.57 26.37 38.72 ---
2000 12.58 7.85 26.62 45.08 41.84
2001 12.70 7.35 27.95 52.55 46.11
2002 12.20 8.09 29.29 52.67 50.16
2003 12.35 8.52 29.46 54.97 49.04
2004 13.53 8.95 33.69 43.84 69.88
2005 14.87 9.57 40.56 45.19 90.19
2006 15.43 10.97 43.34 48.07 100.05
2007 16.41 11.78 44.97 57.58 98.34
2008 18.19 13.57 56.06 66.98 146.91
2009 17.74 15.28 61.32 63.03 130.46
2010 (3 months) --- --- --- --- 129.16

Quoted on unadjusted nominal US dollar basis; Source: http://www.eia.doe.gov/fuelcoal.html

(1)
Declared export value

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Copyright © January 2011 InfoMine USA, Inc. COAL COST GUIDE 11
Table 7. U.S. Coal Spot Prices by Region, 2001 - Present [Price - US$ per tonne]
(1)
Year/ Central Northern Illinois Powder Uinta
Week Appalachian Appalachian Basin River Basin Basin

BTU 12,500 13,000 11,800 8,800 11,700

SO2-% 1.2 <3.0 5 0.8 0.8
2001 45.77 37.09 30.57 9.58 22.65
2002 32.13 33.53 27.14 6.67 20.66
2003 38.27 30.29 26.00 7.00 19.38
2004 64.77 53.79 35.04 6.86 30.29
2005 68.10 57.02 40.03 11.12 35.37
2006 61.79 46.14 38.35 13.93 40.53
2007 51.08 51.67 34.19 10.87 30.45
2008 117.31 122.77 73.74 14.57 60.53
2009 63.14 57.37 49.47 10.86 54.38
2010 72.15 70.80 47.88 14.44 44.37
24-Nov-06 52.08 47.40 37.48 10.97 39.68
15-Dec-06 52.08 47.40 36.38 10.91 39.68
29-Jan-07 44.64 48.50 33.34 9.92 36.38
28-Feb-07 45.19 49.05 32.52 9.92 36.38
30-Mar-07 45.36 49.05 31.14 9.42 36.38
27-Apr-07 47.12 49.05 31.14 9.48 36.38
25-May-07 49.16 49.77 31.97 10.20 28.11
29-Jun-07 49.16 49.77 34.72 10.09 28.11
27-Jul-07 50.26 49.88 34.72 10.80 28.11
31-Aug-07 50.43 50.98 34.72 11.79 28.11
28-Sep-07 50.43 50.98 35.27 11.63 28.11
26-Oct-07 55.00 51.26 36.93 12.18 26.46
30-Nov-07 62.61 60.90 36.93 12.29 26.46
21-Dec-07 63.60 60.90 36.93 12.68 26.46
25-Jan-08 66.03 69.44 37.48 13.56 36.38
29-Feb-08 92.92 85.98 51.59 15.49 44.09
28-Mar-08 94.58 121.25 57.32 16.04 44.09
25-Apr-08 103.89 115.74 62.83 15.60 48.50
30-May-08 119.32 115.74 71.65 15.54 48.50
27-Jun-08 129.63 130.07 71.65 14.05 59.52
25-Jul-08 154.32 164.24 78.26 13.78 68.34
29-Aug-08 154.32 158.73 91.49 12.13 68.34
26-Sep-08 148.81 165.35 92.59 12.40 67.24
31-Oct-08 131.45 122.91 92.59 15.98 80.47
28-Nov-08 122.52 111.88 91.49 15.98 80.47
19-Dec-08 89.89 111.88 85.98 14.32 80.47
30-Jan-09 73.25 76.06 60.63 14.33 80.47
27-Feb-09 75.18 72.75 60.63 14.33 80.47
20-Mar-09 75.18 63.93 52.91 14.33 80.47
17-Apr-09 76.00 57.32 52.91 9.65 46.30
22-May-09 47.95 47.95 49.60 9.65 46.30
26-Jun-09 52.91 47.95 46.30 9.65 46.30
24-Jul-09 57.65 51.76 46.30 9.65 46.60
28-Aug-09 57.65 50.71 45.75 9.65 49.60
25-Sep-09 57.65 50.71 45.75 9.65 42.99
30-Oct-09 61.34 55.12 45.75 10.20 42.99
25-Nov-09 59.69 56.88 44.09 9.09 42.99
31-Dec-09 63.27 57.87 44.64 10.20 44.09
31-Jan-10 63.88 60.63 45.75 11.96 44.09
26-Feb-10 64.98 70.55 45.75 12.95 44.09
26-Mar-10 67.41 72.20 47.12 13.61 44.09
30-Apr-10 67.41 65.86 45.64 13.61 44.09
28-May-10 71.21 66.96 45.64 12.68 44.09
25-Jun-10 71.21 65.31 45.64 13.94 44.09
30-Jul-10 74.79 69.17 45.64 16.26 44.09
6-Aug-10 74.79 69.17 45.64 16.81 44.09
3-Sep-10 76.61 78.26 51.53 15.98 44.09
1-Oct-10 76.61 78.26 52.08 16.26 45.19
5-Nov-10 78.43 76.61 52.08 14.55 45.19
3-Dec-10 78.43 76.61 52.08 14.61 45.19
7-Jan-11 85.64 80.74 52.36 14.94 45.19

Quoted on unadjusted nominal US dollar basis; http://www.eia.doe.gov/cneaf/coal/page/coalnews/cnmarchive.html

(1)
Annual prices are computed from month-end spot prices.

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12 COAL COST GUIDE Copyright © January 2011 InfoMine USA, Inc.