Markets For Southern Powder River Basin Coal (bbc13600-5e51-4eb3-96d9-1d16af023b88)

Due to its low mine production costs, competitive rail rates and low sulfur content, the Southern Powder River Basin (SPRB) now commands 30 percent of the U.S. utility coal market. In 1996, production exceeded 260 million tons, a growth of 110 million tons since 1989 and 15 million tons over 1995. Continued growth is expected as the second phase of the Clean Air Act Amendments (CAAA) looms. This growth will be the greatest in the southern part of the basin, where coal quality is higher. This article is an overview of supply and demand issues affecting markets for SPRB coal. It reviews the current markets for SPRB coal and addresses future prospects for market expansion.