Not Dead Yet....

Philadelphia, PA: Contrary to some recent press articles, the coal industry in general, and the anthracite coal industry in particular, are not yet dead.

Story: http://goo.gl/dGqQFp

A global economic slowdown coupled with changes in the power generation matrix in the United States are the major contributing factors in reduced coal production. While the effect of global economies on the coal industry are cyclical and recoverable, the changes in the power production matrix are transformative and will require a recalibration of our industry.

Coal will survive, albeit at reduced production rates. Some are predicting a return to 1980's production levels which is still substantial and economically important to the nation. Presently, mining and processing capacities far exceed the immediate delivery markets and this is unlikely to change for the next 24 months. How will we rightsize to meet this challenge?

Rightsizing of the industry will probably follow the arc of the 1982-1983 downturn which idled many of the higher cost mines and advanced the closing of older mines which were too inefficient to keep in production. Some coal qualities will fall from favor while proven qualities such as Pittsburgh No. 8 and low volatile coals will maintain their niches in the market mix.

We will rightsize. We will re-calibrate. And, we will survive. As we always do.

So, let's stop chipping away at that epitaph for now.