Financing Western Coal Development

There are two aspects of financing western coal development -- whether there is going to be enough money to finance the prospective large development of the industry, and the specific techniques of raising money for that development. To take the first question of whether there is going to be enough money around to finance your industry, I think it is quite clear that the restrictions on the development of western coal are going to be non- financial. Environmental impact problems are creating the greatest delay in coal mine development, at the moment; but getting enough personnel, mining equipment, railroad equipment, and failure of the Department of Interior to act on leasing federal coal lands all appear likely to create significant bottle- necks in the development of western coal -- larger bottlenecks than financing. Financing appears straightforward for the industry. There are many projections of the financing required to meet Project Independence goals. The National Academy of Engineers estimated that development of 500 million tons per annum of western coal would be necessary by 1985 to meet the Project Independence goals which might require $20 billion of capital spending. It is generally agreed that 500 million tons a year is not a realistic possibility. Carl Bagge?s estimate of production of 250 million tons a year by 1983 appears a more reasonable projection. Development