Virginia coal production climbs – Virginia Mercury

Virginia coal manufacturing stays excessive, fueled by ongoing demand for metal because the U.S. embarks on an formidable program of infrastructure funding and disruptions in power markets linked to the struggle in Ukraine. 

At the moment, a lot of the coal produced in Virginia is metallurgical, a high-quality type of coal used for steelmaking. 

“Total, demand for metallurgical coal is on the rise,” stated Ben Beakes, president of the Metallurgical Coal Producers Affiliation, the successor group to the Virginia Coal and Power Alliance. “Demand ranges are a few of the highest the trade has seen in a few years.”

U.S. Power Data Administration knowledge present vital will increase in Virginia manufacturing of coal general. The company’s June 2 weekly report discovered that in comparison with this time final yr, the commonwealth’s manufacturing was up 15.5 p.c. Throughout the broader Appalachian area, manufacturing is up 8 p.c general. 

The uptick will not be sudden: starting late final summer season, the Virginia Division of Power started receiving a wave of functions for brand new mining permits and licenses to promote coal. 

Most of the tendencies cited by Beakes to elucidate the rise in mining exercise in November nonetheless are in play, he stated. The world’s emergence from lockdowns instituted in response to the COVID-19 pandemic is driving elevated coal manufacturing as economies come again to life, whereas the federal Infrastructure Funding and Jobs Act is increasing the marketplace for metal, a fabric largely produced utilizing metallurgical coal. 

Russia’s struggle towards Ukraine can be contributing to increased demand for Virginia coal as a result of a few of the state’s mines produce a specific sort of metallurgical coal — often called pulverized coal for injection, or PCI — that metal producers beforehand sourced from Russia. 

“Among the coal in Virginia can qualify for PCI-grade coal,” stated Beakes. “So there may be a few of that coal on the export market that Virginia is making the most of.” 

Virginia’s Buchanan Mine No. 1, operated by Coronado International Assets, was the most important coal producer within the Central Appalachian area through the first quarter of this yr and has considerably ramped up manufacturing of PCI materials, in response to S&P International. 

The rise in coal exercise has impacts past the state’s coalfield area. 

Extra coal is exported from Norfolk than from every other port within the U.S. Based on knowledge launched by the U.S. Power Data Administration this April, roughly 60 p.c of U.S. metallurgical coal exports got here out of Norfolk. 

The identical report discovered that Norfolk’s metallurgical coal exports have been over 15 p.c increased on the finish of 2021 than they’d been on the finish of the prior yr. 

This February, coal exports from Norfolk’s three terminals — operated by Dominion Terminal Associates (co-owned by coal corporations Arch Assets and Alpha Metallurgical Assets), Norfolk Southern and Kinder Morgan — hit their highest degree in three years. Consultancy Argus Media reported that the most important will increase occurred at Kinder Morgan’s Pier IX. 

Firm spokesperson Amy Baek stated in an electronic mail that the corporate doesn’t have a touch upon will increase in metallurgical coal exports.