Economics Of Coal Preparation ? Introduction

The coal industry in the United States has undergone significant economic changes during the past six years. The price of coal remained relatively constant from 1950 to 1969 (See Figures 1 and 2). Steam coal prices tripled and metallurgical coal prices doubled from 1969 to 1974. This price structure has created a new economic environment for coal preparation. Contributing factors to these price trends include: ? Coal Mine Health and Safety Act of 1969 ? Mid-East oil embargo of 1973 ? United Mine Workers of America contract agreements ? Productivity decrease (tons per man-day basis) ? Environmental Protection Agency regulations The increased value of coal justifies additional capital investment in cleaning facilities to optimize yield. Current trends include recovery of existing slurry ponds and recleaning of refuse. Coal preparation plant product yield and quality must be evaluated in terms of the amount of capital expended and cost of operation. Therefore, it is advantageous to optimize the plant product based on clean coal selling price and rate of return on investment.