Coal mine expansion study. [Survey of 120 producers; information from >300 new and possible mine developments]

Technical Report · Sat May 01 00:00:00 EDT 1976

OSTI ID:7240606

Mine information was collected from over 120 existing and potential coal producers and over 300 new planned and possible coal mine developments. It is seen that planned production is projected to increase to 876 million tons by 1980. Beyond that date, planned production quickly peaks and begins to decline, since few companies have firm expansion plans that far into the future. Between 1975 and 1980, planned capacity additions will total over 350 million tons. Most of this will come from the western states, although Appalachia will also show sizeable increases. During contacts with the coal operating companies, efforts were made to identify constraints to increased production. Since early 1975, the coal industry has witnessed a dramatic turnabout. At that time there existed a tight market, witnessed by very high spot market prices, drawdowns of stock levels, and increased surge production. Several constraints were then facing the industry, including long lead times on equipment, labor shortages, a moratorium on Federal leasing, and court suits. Since then, the market situation has moved to an over-supply situation, marked by low spot market prices, high stock levels, and closings of marginal mines. Currently the major constraint facing the market is demand. Although coal demand is projected to rise at an average annual rate of about /sup 5///sub 6/ percent over the next several years, the long lead times necessary to build new coal-fired capacity limit the extent of increased coal consumption over the short term. Several constraints to development were still identified, such as union rules, health and safety regulations, air pollution limitations, and court suits. Since it appears that the tight coal market has not eased, the impact of these problem areas is more likely to be in the form of higher costs or in the relative competitive ability of certain companies and regions, rather than restricting national output. (MCW)

• Research Organization: ICF, Inc., Washington, D.C. (USA)
• OSTI ID: 7240606
• Report Number(s): FEA/G-76/376
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING
POLICY AND ECONOMY
01 COAL, LIGNITE, AND PEAT
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PRODUCTION
COAL MINERS
PLANNING
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FORECASTING
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REGIONAL ANALYSIS
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INDUSTRY
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NATIONAL ORGANIZATIONS
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294001* - Energy Planning & Policy- Coal
012000 - Coal
Lignite
& Peat- Mining