Published: March 11, 2022 |

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The cost of exported coal hit a historic high this week, costing around $450 per ton and officials say it typically costs between $100-120 per ton.

The CEO of the West Virginia Coal Association, Chris Hamilton, credits this cost jump to the low supply of coal and the high demand. He says the cost of coal, in general, has been “steadily going up,” as the supply trickles down.

He also says it’s a direct result of the war between Russia and Ukraine as countries began to boycott Russian coal and oil.

HOW DOES THIS RELATE TO THE WAR BETWEEN RUSSIAN AND UKRAINE?

“We have an opportunity for a true coal renaissance here over the next decade or so – particularly given the unfortunate events in Europe with the Russian salt on Ukraine and all. It seems like there’s a big interest to move away from Russian oil and we think the West Virginia coal stands to make major gains over the next couple years,” says Chris Hamilton, the CEO and President of the West Virginia Coal Association.

Hamilton also says he thinks this provides a great opportunity for energy producers here in the Mountain State.

HOW DOES THIS BENEFIT WEST VIRGINIA?

“I think it’s going to be sustained for some time. When you think of really what’s going on here in Europe, I think it resets our whole energy discussion and debate that’s been taking place here for a couple years. I think it provides us an opportunity to resent on what’s really important — national security/stability, and energy independence,” Hamilton said.

Right now, most producers in the Mountain State won’t see that additional money — as deals are contractual — but Hamilton says he’s confident this will affect the industry long term.

Source: WOWK TV

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