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At risk: Nearly 17% of US coal production uneconomic at current market pricing

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26 February 2015

At risk: Nearly 17% of US coal production uneconomic at current market pricing

Report summary

Nearly 17% of US coal production is at risk of idling or closure, totalling 162 Mst, as these mine's total cash costs plus sustaining capital expenditures exceed current market pricing. The majority of this production originates in Central Appalachia where approximately 72% of the total output is under water. Other US regions also have substantial amounts of coal at risk, ranging from 48% in Southern Appalachia to a low of 8% in both the Western Bituminous and Powder River Basin.

Table of contents

    • More than 160 million short tons of US production at risk
    • Nearly three-quarters of at risk production is thermal
      • Operating margin less sustaining capex - CAPP thermal domestic
    • A larger percentage of US metallurgical production at risk
    • Where are all the mine closures?
    • Coal markets not expected to improve in the near term
    • Oversupply must be eliminated
      • Methodology

Tables and charts

This report includes 7 images and tables including:

  • Production of at risk assets by market
  • Production of at risk assets by region
  • Operating margin less sustaining capex - thermal domestic
  • Operating margin less sustaining capex - metallurgical domestic
  • Operating margin less sustaining capex - metallurgical export
  • At risk: Nearly 17% of US coal production uneconomic at current market pricing: Image 2
  • Operating margin less sustaining capex - thermal export

What's included

This report contains:

  • Document

    At risk: Nearly 17% of US coal production uneconomic at current market pricing

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