Top eastern US coal mines boost production levels in 2021

The top producing coal mines in the eastern U.S. recorded a surge in production volumes in 2021 as increased demand from power generators and steelmakers at home and abroad bounced off lows seen in the initial days of the COVID-19 pandemic.

Three primary coal mining regions east of the Mississippi River — the Illinois Basin and the Central Appalachia and Northern Appalachia basins — all had a sharp rise in cumulative production from the 25 largest mines in each area for 2021 compared to 2020. The region with the most amount of production from its top mines, Northern Appalachia, produced 18.7% more coal from those mines than the previous year while the top 25 mines in the metallurgical coal-focused Central Appalachia region ratcheted cumulative production up by 33.0%. While prices and demand have risen sharply, some producers have warned the sector is limited in how much supply can be generated to meet demand.

Northern Appalachia

The top 25 mines in Northern Appalachia produced about 80.4 million tons of coal in 2021, up from 67.8 million tons in 2020. The top producing mine in the region, American Consolidated Natural Resources Inc.'s Marshall County mine, increased production by 24.5% year over year.

The second-largest mine in the region, Consol Energy Inc.'s Bailey mine, increased production by 35.6% in 2021. The mine is part of a complex in Pennsylvania that includes the Enlow Fork and Harvey mines, which increased production 19.6% and 20.2%, respectively, year over year.

"We expect coal demand to remain robust domestically as well as internationally due to strong forward pricing and tight supply," Consol President and CEO Jimmy Brock said on a Feb. 8 earnings call.

Other major operators in the region include Arch Resources Inc., Alliance Resource Partners LP and Rosebud Mining Co.

Illinois Basin

The top 25 mines in the Illinois Basin produced 64.7 million tons of coal in 2021, an increase of 14.8% compared to the prior year. Coal production from the Illinois Basin mines totaled 16.9 million tons in the fourth quarter of 2021, topping the 15.7 million tons produced by the same operations in the prior quarter.

Other companies owning top mines in the Illinois Basin region include Peabody Energy Corp., Foresight Energy LP and American Consolidated Natural Resources.

Central Appalachia

The 25 largest Central Appalachia coal mines produced 29.1 million tons of coal in 2021, up from 21.9 million tons in 2020. The largest producer in the region, which is a hotspot for metallurgical-grade coal used in steelmaking, was Coronado Global Resources Inc.'s Buchanan No. 1 mine, which increased production 28.8%.

Other companies with top mines in the region include Alpha Metallurgical Resources, Alliance Resource Partners, Arch Resources and Sev.en Energy AG.