Historical Production, Resource Depletion, And Coal Quality Constraints - Keys To Future Coal Production Patterns?

The primary factors that determine the marketability of coal from various supply centers in the U.S. are coal quality and supply; i.e. low sulfur, moderate- to high- Btu coals have large market areas when compared to less expensive but poorer quality coals. Price is the major factor in the competitive marketing of similar coal products. Good quality, (moderate- to high- Btu, low sulfur) coals from the Powder River and central Appalachian basins are marketed over large areas of the country, and central Appalachian coal is widely distributed in foreign markets, primarily as coking coal. In contrast, poorer quality bituminous coal (low calorific value and/or high sulfur) from the Illinois Basin, northern Appalachian Basin, and lignite from the Gulf Coast is marketed in or near the States in which it was mined even though the price at the mines may be lower than mine prices for central Appalachian coal. Widespread distribution of sub-bituminous Powder River Basin coal is enhanced by its exceptionally low mining costs, which offsets transportation costs to distant markets.