Published: April 24, 2023 |

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According to a new study conducted by the West Virginia University Bureau for Business & Economic Research, United States’ steel production that uses West Virginia metallurgical (met) coal generated approximately $186 billion in total economic activity in the United States in 2019. Additionally, West Virginia is the leading producer of met coal nationally and supplied nearly 63 percent of all the met coal distributed to US coke plants.

“This study showcases the incredible importance and the national reliance on West Virginia-produced met coal. Without the coal our miners produce right here in West Virginia our country would be forced to import this critical ingredient for making the steel that builds, defends, and supports America,” said Chris Hamilton, president and chief executive officer of the West Virginia Coal Association.

The study found that:
• U.S. steel production that relies on West Virginia met coal supported about 547,000 jobs in the nation in 2019.
• U.S. steel production that relies on West Virginia met coal provided nearly $40 billion in labor income in the U.S.
  in 2019.
• U.S. steel production that relies on West Virginia met coal supported nearly $5.4 billion in tax revenue for U.S.
  state and local governments in 2019.

The impact the production of met coal has on West Virginia is similarly significant, generating approximately $9.6 billion in total economic activity, supporting about 30,500 jobs, contributing nearly $554 million in tax revenue for U.S. state and local governments, and producing about $2.5 billion in labor income in 2019.

The majority of West Virginia met coal in 2019 was produced by mines in southern West Virginia. Logan and Raleigh counties produced the largest amount with more than six million short tons each in 2019. Fayette, McDowell, and Wyoming counties in southern West Virginia, as well as Taylor County in northern West Virginia, produced more than two million short tons each in 2019. The total amount of met coal produced in the state in 2019 was 34.6 million short tons. In recent years, Taylor, Barbour, and Randolph Counties have substantially increased met coal production and are becoming even more important to the state’s contribution to steel production.

“Together with our state’s reliable power producers, West Virginia’s coal industry sets our state apart as major contributors to a safe, secure and advanced nation,” said Hamilton.

Met coal is a grade of coal that is used to produce coke, which is an essential ingredient for making steel. It is converted to coke, which is then used as both a fuel for blast furnace operation and as a chemical and physical reductant in the production of raw iron. In addition to producing coke, a specific blend of met coal, referred to as pulverized coal injection (PCI) coal, is used in a blast furnace to heat the charge of raw iron ore, coke, and fluxing stone. Met coal and coke are also used in a variety of other ferro-alloy industries as a fuel for smelter and foundry operations and a carbon additive to finished alloys and metals.

The study was released during the 49th Annual West Virginia Mining Symposium, which took place April 18-19 at the Embassy Suites Hotel in Charleston, West Virginia. The study was sponsored by the West Virginia Coal Association.

Source: LootPress

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