Coal Mining
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 316 coal producers in the US sell coal to electric utilities, industrial facilities, steel manufacturers, and energy marketing firms or traders. Exports are also an important market for US coal producers. Coal mines are classified by their mining method and the type of coal they mine. Surface mining is the predominant mining method, particularly in western states, while underground mining is often used in eastern states. Coal varies by heat content, ranging from lignite (the lowest grade) to sub-bituminous, bituminous, and anthracite (the highest grade).
Environmental Compliance
Coal producers are directly impacted by a wide range of environmental regulations that affect the permitting, operation, and reclamation of mining sites.
Competition for Electric Power Generation
According to the US Energy Information Administration (EIA), about 91% of US coal consumption is used for electric power generation, and coal supplies 17% of US electricity generation.
Industry size & Structure
The average US coal mining company operates 1-2 mines, employs about 135 workers, and generates $126 million in annual revenue.
- The US coal mining industry comprises about 316 companies operating 560 mines, employing 42,800 workers, and generating $40 billion in annual revenue.
- Electric power generation accounts for 91% of US coal consumption.
- The US has a total productive capacity of almost 847 million short tons of coal. Nearly two-thirds (62%) of US coal production is from surface mines, while underground mines account for 38%.
- The industry is highly concentrated: the top 20 companies account for 77% of annual production.
- The largest US coal producers are Peabody Energy, Core Natural Resources, Navajo Transitional Energy Company (NTEC), Alliance Resource Partners, and Acnr Holdings.
- The largest coal producing states are Wyoming, West Virginia, Pennsylvania, Illinois, and Montana.
- The largest underground mine in the US is the Bailey Mine in Pennsylvania, producing over 11.1 million short tons annually. The largest surface mine in the US is Wyoming’s North Antelope Rochelle Mine, producing over 62 million short tons annually.
- According to the Bureau of Labor Statistics, employment by US coal mines is projected to fall 43.3% between 2022 and 2032, the sharpest decline of all industries.
Industry Forecast
Coal Mining Industry Growth
Recent Developments
Jan 27, 2025 - Rising Prices and Wages
- According to the latest US Bureau of Labor Statistics data, producer prices for coal mining firms inched up 0.7% in December compared to a year ago after rising 1.9% in the previous December-versus-December annual comparison. Employment by coal mines was relatively flat year over year in December following a 4.2% increase in the average industry wage in November to $36.58 per hour, BLS data show. Mining capacity utilization has remained relatively stable of late, averaging 89.7% from July through December 2024, according to data from the Federal Reserve.
- The highly-concentrated US coal mining industry is undergoing further consolidation as a result of the merger of two of the largest US coal producers. Amid a wave of industry deal making, CONSOL Energy and Arch Resources merged in January to form Core Natural Resources (CNR) with large and non-overlapping thermal and metallurgical coal operations, according to a press release. Newly-merged CNR owns 11 mines, including Pennsylvania’s Bailey, Enlow Fork, and Harvey mines and the largest underground mine complex in North America. “Through this transformational combination, we have created a global leader exceptionally well-positioned to compete and succeed in two significant, high-potential market segments – the global metallurgical and global high-rank thermal coal markets,” the company’s CEO Jimmy Brock said in a statement. Both companies sold an aggregate of 101 million tons of coal in 2023 that was used in steelmaking, power generation and industrial uses.
- Peabody Energy, one of the nation’s largest coal mining companies, is joining with RWE Clean Energy to repurpose reclaimed land previously used for mining for solar energy projects, Coal Age reports. The partnership brings together RWE’s experience in developing and operating clean energy projects and Peabody’s significant land resources to develop 10 potential projects on reclaimed land in Indiana and Illinois, according to Coal Age. RWE will acquire seven of the projects and enter into a joint venture with Peabody to continue development of the three others. Combined, the renewable energy projects planned for the reclaimed lands could generate enough electricity to power the equivalent of over 850,000 homes across the region, Coal Age reports. “The development of utility-scale solar and storage projects on reclaimed land previously used by our coal mining operations is consistent with our mission and beneficial for all our stakeholders,” says Peabody’s chief development officer.
- The Mine Safety and Health Administration (MSHA) has warned that injecting large quantities of polyurethane to fill voids in roof cavities in underground mines can cause fires, Coal Age reported in July. The agency reported a fire in an underground coal mine in June after a large quantity of polyurethane foam was injected into a roof cavity, the fourth fire attributed to polyurethane foam, which produces heat from an exothermic chemical reaction, application in four years. MSHA recommends that underground coal operators develop a site-specific plan for void fills that addresses appropriate formwork (placement of foam), injection volume and rates, PPE for chemical exposures, temperature monitoring, fire watch, and storage and handling. Miners deploying polyurethane foam should be trained in the hazards, safety precautions, and manufacturer’s safety data sheets.
Get A Demo
Vertical IQ’s Industry Intelligence Platform
See for yourself why over 60,000 users trust Vertical IQ for their industry research and call preparation needs. Our easy-to-digest industry insights save call preparation time and help differentiate you from the competition.
Build valuable, lasting relationships by having smarter conversations -
check out Vertical IQ today.