he National Mining Association’s recently published 2007 Coal Producers Survey documents increased coal consumption and use for electricity generation along with a big spike in U.S. coal exports. According to the survey, total domestic consumption of coal was 1,128.8 million tons in 2007, marking an increase of 1.5 percent over 2006 consumption. That increase was primarily due to a warm summer that led to higher utility use in the power sector. The majority of coal production, approximately 93 percent, continued to be used for electricity generation. Power producers used an estimated 1,046.4 million tons of coal in 2007, about 20 million tons more than in 2006, with coal continuing to provide nearly 50 percent of total electricity generation.
Regarding exports, the U.S. shipped slightly more than 59 million tons of coal in 2007, marking a nearly 20 percent jump in exports versus 2006. According to the survey, coal has been the beneficiary of a global rush for resources, as well as an exchange rate that has the U.S. dollar trading lower against most international currencies. Metallurgical coal exports ended the year at 32 million tons, up 17 percent, as demand for U.S. coking coal for international markets increased dramatically, according to survey. The majority of the increased demand for metallurgical coal is the result of increased shipments to Europe, South America and Africa, primarily Egypt. Steam coal exports increased almost 22 percent to 27 million tons in 2007, driven by much larger shipments to Europe and Africa, primarily Morocco. According to the survey, U.S. exports of both steam and metallurgical coal are expected to continue to rise in 2008 due to the strong internat ional coal demand and the weak U.S. dollar. A copy of the survey is available at: NMA Coal Producer Survey. (NMA Mining Week | June 6, 2008)
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