A report in The State Journal this week indicated coal mining remains the primary driver of the state’s economic engine. Mark Muchow, deputy secretary of the West Virginia Department of Revenue, presented a balanced budget to the House of Delegates Finance Committee January 12, and cited coal employment and exports as some of the major drivers of West Virginia's economy.
According to Muchow's presentation, forty percent of coal, mostly metallurgical coal, ends up in Europe, although Asian and South American countries are becoming players in the coal market. The price of coal was four times higher in 2011 when compared to 2003, Muchow said.
Coal helped the state's real gross domestic product grow to fifth in the country. And although mining accounts for a mere 4 percent of the state's employment, it also accounts for about 21 percent of the growth.
In 2001, severance taxes accounted for 1 percent of the state's general revenue fund. In 2011, that figure jumped to 11 percent. Severance taxes are forecasted to increase more than $16 million between fiscal years 2012 and 2013, according to Muchow.
The mining industry saw an increase of 3,500 jobs in 2011, with 2,200 in coal mining and 1,300 in other mining, according to Muchow's presentation.