COAL EXPORT FROM USA

CoalCoal is a combustible black or brownish-black

sedimentary rock composed mostly of carbon and hydrocarbons.

4 Types:LigniteSub bituminousBituminousAnthracite

Coal MiningSurface Mining

Strip Mining

Underground Mining

COAL PRODUCTION REIGON IN USA

COAL EXPORT FROM USA

COAL EXPORT PROJECTED

COAL EXPORT FROM USA TO VARIOUS CONTINENT

USA COAL EXPORT- PORT TO DESTINATION

USA COAL EXPORT TYPE WISE FROM PORT

MOVEMENT FROM PORT Large part of the US Coal destined for East Asia being shipping out of the US East Coast ports

US East Coast ports Baltimore, Norfolk, NewYork, Charleston, Savannah, Miami

The Pacific ports export thermal coal to East Asia, US East coast and Gulf coast (USEC/USGC) ports export both thermal coal and coking coal.

FACTS ABOUT COAL RESERVE IN USARecoverable reserves of coal more than 200

years.Coal is produced in 25 states spread across

three major coal-producing regions. Three regions areAppalachian coal region:Interior coal region: Western coal region: 65- 80 % production originated in five states:

Wyoming, West Virginia, Kentucky, Pennsylvania, and Illinois.

FACTS ABOUT COAL MARKET AND IMPORT IN USAAnnual share of total net generation declined

from 50% in 2007 to 37% in 2012 as some power producers switched to lower-priced natural gas

More metallurgical coal than steam coal was exported in 2012 with Europe the largest importer of U.S. Metallurgical coal, followed by Asia.

Appalachian Coal RegionMore than one-third of the coal produced in

the united states comes from the Appalachian coal region.

West Virginia is the largest coal-producing state in the region, and the second largest coal-producing state in the united states.

Coal mined in the Appalachian coal region is primarily used for steam generation for electricity, metal production, and for export.

Interior Coal RegionTexas is the largest coal producer in the

interior coal region, accounting for almost one-third of the region's coal production.

This region has mid-sized surface mines.

Western Coal RegionOver half of the coal produced in the united

states is produced in the western coal region.Wyoming is the largest regional coal

producer, as well as the largest coal-producing state in the nation. Nine of the top ten producing coal mines in the united states are located in Wyoming.

This region has many large surface mines.Some of the largest coal mines in the world

are in the western coal region.

USA COAL MINESSR NO. Mine Name Company Mine Type State

1 Black Thunder Mine Arch Coal[2] Surface Wyoming

2North Antelope Rochelle Mine

Peabody Energy Corporation[3] Surface Wyoming

3Cordero Mine

Rio Tinto Energy AmericaSurface Wyoming4 (Rio Tinto Group)[4]

5Jacobs Ranch Mine


7Antelope Coal Mine


9 Caballo MinePeabody Energy Corporation[3] Surface Wyoming

10 Belle Ayr Mine Foundation Coal[6] Surface Wyoming11 Buckskin Mine Kiewit Corporation[7] Surface Wyoming12 Eagle Butte Mine Foundation Coal[6] Surface Wyoming

13 Rawhide MinePeabody Energy Corporation[3] Surface Wyoming

14 Spring Creek Coal Company

Rio Tinto Energy AmericaSurface Montana15 (Rio Tinto Group)[5]

16 Freedom MineNorth American Coal

Corporation[8] SurfaceNorth Dakota

17 Rosebud MineWestmoreland Coal

Company[9] Surface Montana

18 Enlow Fork Mine CONSOL Energy[10]Undergrou

ndPennsylvan

ia19 Coal Creek Mine Arch Coal[2] Surface Wyoming

20 Bailey Mine CONSOL Energy[10]Undergrou

ndPennsylvan

ia

USA COAL MINESSR NO. Mine Name Company Mine Type State21 McElroy Mine CONSOL Energy[10] Underground West Virginia22 Navajo Mine BHP Billiton[11] Surface New Mexico23 Foidel Creek Mine Peabody Energy Corporation[3] Underground Colorado24 Kayenta Mine Peabody Energy Corporation[3] Surface Arizona

25 Falkirk MineNorth American Coal

Corporation[8] Surface North Dakota26 Absaloka Mine Westmoreland Coal Company[9] Surface Montana27 Cumberland Mine Foundation Coal[6] Underground Pennsylvania28 Century Mine Murray Energy Corporation[12] Underground Ohio29 Galatia Mine Murray Energy Corporation[12] Underground Illinois30

Decker MineRio Tinto Energy America

Surface Montana31 (Rio Tinto Group)[5]32 San Juan Mine 1 BHP Billiton[11] Underground New Mexico33 West Elk Mine Arch Coal[2] Underground Colorado34 Jewett Mine Westmoreland Coal Company[9] Surface Texas35 Sufco Arch Coal[2] Underground Utah36 Loveridge No 22 CONSOL Energy[10] Underground West Virginia

37 Robinson Run No 95 CONSOL Energy[10]Underground

[13] West Virginia

38 Beckville StripEnergy Future Holdings

Corporation[1][14] Surface Texas39 Emerald Mine No 1 Foundation Coal[6] Underground Pennsylvania40 Colowyo Mine Rio Tinto Group[15] Surface Colorado

USA COAL MINESSR NO. Mine Name Company Mine Type State

41 Bowie No 2 Mine Bowie Resources[1]Undergrou

nd Colorado

42Lee Ranch Coal

CompanyPeabody Energy Corporation[3] Surface

New Mexico

43 Dry Fork MineWestern Fuels

Association[16] Surface Wyoming44 Kemmerer Mine Chevron Corporation[17] Surface Wyoming

45Twilight MTR Surface

Mine Massey Energy Company[18] SurfaceWest

Virginia

46 Blacksville No 2 CONSOL Energy[10]Undergrou

ndPennsylvani

a47 Wyodak Black Hills Corporation[19] Surface Wyoming

48 Elk Creek Mine Oxbow Corporation[20]Undergrou

nd Colorado

49 Cardinal MineAlliance Resource

Partners[21]Undergrou

nd Kentucky

50 Dotiki MineAlliance Resource

Partners[21]Undergrou

nd Kentucky

51 Powhatan No. 6 MineMurray Energy Corporation[12]

Underground Ohio

52 West Ridge MineMurray Energy Corporation[12]

Underground Utah

53South Hallsville No 1

MineNorth American Coal

Corporation[9] Surface Texas

54 Hobet 21 Surface Mine Patriot Coal[22] SurfaceWest

Virginia

55 Three Oaks MineEnergy Future Holdings

Corporation[1][14] Surface Texas

56 Oak Hill StripEnergy Future Holdings

Corporation[1][14] Surface Texas

57 Federal No 2 Patriot Coal[22]Undergrou

ndWest

Virginia

Top Ten USA COAL MINING Company Peabody Energy Arch Coal Cloud Peak Energy Alpha Natural Resources CONSOL Energy Alpha Appalachia Holdings NACCO Industries Peter Kiewitt Sons Alliance Resources Operating Partners Energy future Holdings

Coal Export from US Port to India2009

Year Quarter Type Customs District Coal Origin Country

Coal Destination Country Steam Coal Metallurgical Total

2009 1Coal Exports Houston-Galveston, TX United States India . . .2009 1Coal Exports New York City, NY United States India 13 . 13

2009 1Coal ExportsNorfolk, VA / Mobile, AL / Charleston, SC United States India 148 4,38,239 4,38,387

2009 2Coal Exports Chicago, IL United States India . 11,459 11,459

2009 2Coal Exports New York City, NY United States India . . .


2009 2Coal Exports San Francisco, CA United States India 22 . 22

2009 3Coal Exports Chicago, IL United States India . . .2009 3Coal Exports Detroit, MI United States India . 9,981 9,981

2009 3Coal Exports New York City, NY United States India 467 . 467


2009 3Coal Exports San Francisco, CA United States India 134 . 1342009 4Coal Exports Baltimore, MD United States India . 58,713 58,713

2009 4Coal Exports Cleveland, OH United States India . 65 65

2009 4Coal Exports Los Angeles, CA United States India 23 . 232009 4Coal Exports New Orleans, LA United States India . 38,581 38,581



1,954 20,60,097 20,62,051





2010 1Coal Exports Tampa, FL United States India 3 . 3

2010 2Coal Exports Baltimore, MD United States India . 57,260 57,260


2010 3Coal Exports Baltimore, MD United States India . 33,081 33,0812010 3Coal Exports Los Angeles, CA United States India 22 . 222010 3Coal Exports New York City, NY United States India 2 . 2



2010 3Coal Exports Tampa, FL United States India 1 . 12010 4Coal Exports Baltimore, MD United States India . . .

2010 4Coal Exports Chicago, IL United States India . . .2010 4Coal Exports New Orleans, LA United States India 1,88,426 49,053 2,37,479



1,88,958 25,33,719 27,22,677




2011 1Coal Exports Baltimore, MD United States India . 79,891 79,8912011 1Coal Exports New Orleans, LA United States India 2,31,510 55,468 2,86,978



2011 2Coal Exports Cleveland, OH United States India 66 . 662011 2Coal Exports New Orleans, LA United States India 2,28,820 3,08,985 5,37,8052011 2Coal Exports New York City, NY United States India 34 . 34



2011 3Coal Exports New Orleans, LA United States India 2,37,372 . 2,37,3722011 3Coal Exports New York City, NY United States India 53 . 53


2011 3Coal Exports Seattle, WA United States India 22 . 22


2011 4Coal Exports New Orleans, LA United States India . 88,804 88,8042011 4Coal Exports New York City, NY United States India 34 . 34


2011 4Coal Exports San Francisco, CA United States India 20 . 20 6,98,894 38,01,211 45,00,105


Year Quarter Type Customs District Coal Origin Country Coal Destination Country Steam Coal Metallurgical Total

2012 1Coal Exports Baltimore, MD United States India 3,38,732 60,615 3,99,3472012 1Coal Exports Los Angeles, CA United States India 12 . 12

2012 1Coal Exports New Orleans, LA United States India 82,903 1,53,271 2,36,174



2012 2Coal Exports Baltimore, MD United States India 2,16,759 1,34,616 3,51,3752012 2Coal Exports Los Angeles, CA United States India 60 . 60

2012 2Coal Exports New Orleans, LA United States India 3,45,597 1,30,772 4,76,3692012 2Coal Exports New York City, NY United States India 34 . 34


2012 2Coal Exports Tampa, FL United States India 129 . 129

2012 3Coal Exports Baltimore, MD United States India . 2,60,614 2,60,6142012 3Coal Exports New Orleans, LA United States India 3,43,733 2,13,724 5,57,457



2012 3Coal Exports Philadelphia, PA United States India 17 . 17

2012 3Coal Exports San Francisco, CA United States India 21 . 212012 3Coal Exports Savannah, GA United States India 1 . 12012 4Coal Exports Baltimore, MD United States India . 2,16,506 2,16,5062012 4Coal Exports Houston-Galveston, TX United States India 18 . 182012 4Coal Exports Los Angeles, CA United States India 62 . 622012 4Coal Exports New Orleans, LA United States India 6,86,837 74,551 7,61,3882012 4Coal Exports New York City, NY United States India 34 . 34


20,15,607 47,98,326 68,13,933

OPPURTUNITY IN USA COAL MINING Decrease in demand because electricity sector

moving towards shale gasEPA new regulations for cross state air pollution

for drastic reduction of SO2 ,NOx and mercury for power plants over coal consumption, so power plant now moving towards gas

So coal miners moving towards export of coal after losing internal market

Attractive prices on the international marketLess maritime freight

BOTTLENECKS IN IMPORTING USA COALShipping distances to Asian marketHigher internal logistic CostLocal public outcry about pollution in various

states

INDIAN COMPANY IMPORTING USA COALAbhijeet GroupEssar GroupAdani EnterprisesBhatia GlobalJSW GroupCoastal Energen

MARKET MANAGEMENTSPOT MARKET- ENTER INTO MARKET

WHEN PRICES ARE HIGHLONG TERM CONTRACT:- WHEN PRICES

ARE HIGH ,MAKE THE LTC WITH SUPPLIER AND BUYER TO OFFSET THE FULCTUATION IN PRICE IN FUTURE MONTHS

COAL INTERNAL TRANSPORTATION AT USA

COAL TRANSPORTAION BY RAIL ROADRailroad to portsUnit train- dedicated car haul between

mine to consumerCars available on lease out basisTrains move 800 miles per day

COAL TRANSPORTATIONBY BARGES TO PORT

25000 miles of navigational inland waterways in 48 states

Channels periodically maintained by corps of engineers

Can be used for ports of mobile and New OrleansVolumes of cargo can be move from central

Appalachia and northern great plains to gulf coast.

MAJOR PORTS FOR COALPort of Hampton RoadsPort of BaltimorePort of MobilePort of New OrleansPort of PhiladelphiaPort of New YorkPort of great lakesPort of Norfolk

PROJECT- IMPORTING USA COAL TO INDIA

WEST VIRGINIA MINES

Suppliers from VirginiaCOAL SUPPLIERS IN USA, VIRGINIA

SR.NO. COMPANY NAME ADDRESS PHONE NO.

1Alpha Natural

Resources4 N 4th St #

201,Richmond, VA 23219(804) 788-

1800

2 James River Coal Co

901 E Byrd St # 1600,Richmond, VA

23219(804) 780-

3000

3 Massey At Coal Co IncCHESTERFIELD Airport

Richmond, VA 23234(804) 275-

2473

4Fireside Hearth &

Home2146 Tomlynn

St,Richmond, VA 23230(804) 278-

6170

5 A T Massey Coal Co5002 Monument

Ave,Richmond, VA 23230(804) 782-

1662

6Northeast Solite

Geology Department4801 Hermitage Rd Ste

105,Richmond, VA 23227(804) 262-

8119

7Commonwealth Coal

Sales

5413 Patterson Ave # 102

Richmond, VA 23226(804) 282-

9822

8Hearth & Home

Shoppe

8154 Mechanicsville Tpke

Mechanicsville, VA 23111

(804) 730-3800

9Back Bay Coal Management

510 Hunt Field RdManakin Sabot, VA

23103(804) 708-

0958

West Virginia coalsHaving high energy contents and low sulphur

contents, making them ideal fuels for electricity generation

Also well suited for producing "coke," which is used in the manufacture of steel.

World’s highest-quality metallurgical coals are mined here, so price is premium for this coal and cost is low compared to other mines in different states

Port of Hampton RoadsThe Port of Hampton Roads, at the mouth of the Chesapeake Bay, is among the world's foremost coal-shipping facilities

MOVEMENT FROM WEST VIRGINIA TO PORT OF HAMPTON ROADSVirginia coal is shipped from mine to market

by intricate rail network covers the south-western Virginia coalfield, and extends to major markets and ports.

Two railroad firms serve Virginia's mines – 1-Norfolk Southern Corporation (90 %

movement) 2- CSX Corporation from unit train it is loaded onto large ships

called "colliers”, which run to destination.

ROYALTY RATESurface mining: 12.5% of gross value of coal produced

Underground mining: 8% of gross value of coal produced

COSTING TABLE FOR STEAM COALSTEAM COAL COSTING

Description in dollarNet CIF value Less : Production cost(Royalty included) Less Railway Logistic Cost from Mine to Port Less : Port Charges Less: Handling cost (Agent+Surveyor cost+ Spillage Cost + other) Less: Net material handling cost Less: Plot rent less: custom expenses less: documentation cost Less: maritime freight less: insurance cost Profit before financials 0

COSTING TABLE FOR METALURGICAL COAL

METALLURGICAL COSTDescription in dollar

Net CIF value Less : Production cost(Royalty included) Less Railway Logistic Cost from Mine to Port Less : Port Charges Less: Handling cost (Agent+Surveyor cost spillage+ other) Less: Net material handling cost Less: Plot rent less: custom expenses less: documentation cost Less: maritime freight less: insurance cost Profit before financials 0

INDIAN COAL DEMANDFuel coal requirement is estimated to be

around 850 mtpa by the end of the 13th Plan (2017-22), in best case it will reach actually 780 mtpa, so there will be gap 70 mtpa which is going to fill up by import.

this shortage of coal due to1-Lack of Infrastructure2-land acquisition problem3-environmental clearance4-delaying in decision making by Govt.

INDIAN THERMAL COAL MARKET

INDIAN THERMAL COAL MARKETSecond largest importer of thermal coal

after chinaGrowth in imports is primarily driven by

demand from the power sector, which accounts for around 75% of the total thermal coal imports

India primarily imports low calorific value coal of 3,800 GAR (gross-as-received) - 4,200-5500 GAR, with landed cost max 7200 Rs. From Indonesia and south Africa, Australia for Power Production

INDIAN METLLURGICAL COAL MARKETSurge in imports was because of declining

coking coal rates in international marketsConvert coking coal into coke here at a cost

of $195 a tonne, while readily available coke is traded at $260 a tonne

India buys about 4 mt coke and 28 mt coking coal every year, mainly from Australia and Indonesia.

ADDITION OF NEW COUNTRIES FOR SOURCINGUSA- Abhijeet group had made contract with

mine owner from West Virginia for 25 yearsCanada JSW Steel have imported 4 lakh tonnes

of coking coal from the North American port of Vancouver, Canada.

MozambiqueMongoliaRussia

ConclusionThere is huge demand of coal in Indian

market which can be fulfill by importing of coal from different countries.

In future steam coal price will be high (Indian demand) and same time maritime freight will be low (less Chinese demand) , so prospects are bright.

Documents

COAL EXPORT FROM USA