Appalachia coal basins bore the brunt of U.S. mine idling in the second half of 2017, despite increased overseas demand for the region's coal.
Central Appalachia, which includes parts of Kentucky, Tennessee, Virginia and West Virginia, was hit hardest, with 564,418 tons of coal from 20 mines going offline.
A National Mining Association spokesman confirmed Appalachia had a difficult second half but said the stronger export market and higher coal prices helped improve Appalachia's production levels after the first quarter of 2017 and noted that some producers like Warrior Met Coal Inc. added mine capacity in the second half of the year.

Despite the idlings, fourth-quarter coal mine employment grew in Central and Southern Appalachia. The top 25 CAPP mines increased production year over year in the quarter, indicating that larger mines might be making up the lost production from smaller operations.
According to data compiled by S&P Global Market Intelligence, the 46 coal mines that were idled for at least one quarter between July and December produced 1.2 million tons of coal in 2017. Idled production grew a little from the 1.1 million tons that went offline in the first half of 2017 but fell to half the amount sidelined during the second half of 2016.
Only three of the mines idled in the second half produced more than 100,000 tons in 2017, and most idled facilities had an output of less than 50,000 tons.
Thirteen of the idled CAPP mines were in Kentucky. The largest is Spurlock No. 4 Surface Mine, owned by JMP Holdings LLC, T A Potter Enterprises LLC, JMP Coal Holdings LLC and RWE Trading Americas Inc. Some of those owners idled other mines in the second half of 2016 as well.

Ramaco Resources LLC's Highwall Miner No. 1 in West Virginia, whose ultimate parent is Yorktown Energy Partners IX LP, was in the early stages of development in the third quarter when it reported no output. In the company's third-quarter earnings call, a Ramaco executive said the mine will likely produce some of Ramaco's lowest-cost coal as it ramps up its output.

Eighteen mines went idle in Northern Appalachia in the second half, including Tri-Star Mining Inc's Job No. 3 in Maryland. The mine, which accounted for more than half of NAPP's offline production, was the highest-producing idled mine in the U.S. in the second half.

Pennsylvania accounted for the bulk of idlings in the NAPP region: 14 mines that produced 140,811 tons of coal.
Rachel Gleason, executive director of the Pennsylvania Coal Alliance, said some of the state's smaller thermal mines could be struggling to compete with larger operations at current prices.
Six mines were idled in Southern Appalachia, while the Interior and Gulf Coast each had one idled mine in the second half.

Although one Illinois Basin producer complained of oversupply on the market last year and another, Armstrong Energy Inc. filed for Chapter 11 bankruptcy protection in November 2017, the region did not see a single mine idling in the second half.
