12-month coal output from Powder River Basin, Uinta Basin rises YOY

Coal producers in the western U.S. raised production amid a tight global coal market as several European nations shunned supplies from Russia due to its invasion of Ukraine.

For the 12-month period ended June 30, output from the Powder River Basin, the largest coal region in the United States by production volume, increased by 10.5% year over year to 260.2 million tons. Coal producers from the Uinta Basin, meanwhile, grew output by 10.4% to 24.6 Mt, according to an analysis of S&P Global Market Intelligence data.

A recent projection by the U.S. Energy Information Administration showed that coal production will increase by 21 million tons year over year to 599 Mt in 2022, then edge up to 601 Mt in 2023.

Powder River Basin coal output raised

Nine out of 15 producing mines within the Powder River Basin, with operations mostly located within Wyoming, raised coal output by double digits for the 12 months ended June 30. Production from Arch Resources Inc.'s Black Thunder mine topped production within the region at 66.1 Mt during the period, a 27.6% increase year over year.

Despite the increased output, Arch is planning toward long-term mine closure and reclamation at Black Thunder, which is listed as one of the company's legacy thermal coal operations. The company is also taking advantage of elevated thermal coal prices through the export of production from Black Thunder, with shipments of nearly 500,000 tons into the international market in the second half.

Peter Kiewit Son's Inc.'s Buckskin mine posted the largest percentage increase, at 65.1%, to 15.1 Mt. Meanwhile, Peabody Energy Corp.'s North Antelope Rochelle mine, the second-largest producer in the region at 60.0 Mt, posted an 8.7% drop in year-over-year production.

Uinta Basin coal producers increase production

At the Uinta Basin, five of the region's 12 producing mines posted increases in production over the year ended June 30, with three mines more than doubling their yearly output. Arch Resources' West Elk mine in Colorado produced 4.4 Mt during the period, a 105.6% increase from the prior 12-month period, and output from Deseret Generation and Transmission Cooperative's Deserado mine soared 104.1% to 2.6 Mt.

Meanwhile, production from the Coal Hollow mine owned by Alton Coal Development LLC and Sleepy Hollow Mineral Investors LLC, showed the largest year-over-year percentage decline, down 29.7% to 386,000 tons. The Sufco mine in Utah, a joint venture between Galena Private Equity Resources Fund LP and Cedars Energy LLC, was the third-largest producer in the region at 3.3 Mt, but represented a 19.8% decrease yearly.

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