Coal

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Coal industry group predicts lower production

Coal industry group predicts 4 percent production decline due to weak economy
Thursday February 19, 2009, 6:29 pm EST

CHARLESTON, W.Va. (AP) -- The National Mining Association is predicting U.S. coal production will decline 4 percent this year. Hal Quinn, president of the industry group, blamed the anemic U.S. economy in a speech to the West Virginia Coal Association on Thursday. Preliminary government figures show U.S. production totaled 1.17 billion tons in 2008.

The Washington, D.C.-based trade group expects electricity demand to dip less than 1 percent this year as industrial customers scale back. Quinn says electricity demand is expected to grow 1.3 percent in 2010 as the economy rebounds.

As a result, production of utility coal is expected to dip 1.2 percent. Production of coking coal for firing blast furnaces is expected to fall 11 percent due to plunging demand for steel.

Quinn says exports likewise are expected to drop 11 percent. Soaring international demand pushed exports up 38 percent in 2008.

http://biz.yahoo.com/ap/090219/coal_production_outlook.html?.v=2