Coal assets in the mining basins
As one of the leading coal producers in the U.S., Alpha (ANR) has a huge presence in various coal mining basins across the nation. Its operations can be attributed between the Eastern and Western segments. Alpha sold a total of 86.9 million tons of coal in 2013, of which 86 million tons were produced and process by the company. Many global coal producers (KOL) also operate out of these mining basins in the U.S. Some examples of the major players in the area are Arch Coal (ACI), Peabody Energy (BTU), and Consol Energy (CNX).
The general rule is that underground mines typically cost more to mine, which is why Alpha spends more per ton of coal sold in the Eastern coal segment where they mostly have underground coal assets.
Within the Eastern segment, Alpha has presence in both the Central and Northern Appalachia mining basins. Its coal reserves can further be classified into assigned and unassigned reserves. Assigned reserves are planned on being mined in a mine that is either in operation, idle, or with plans to be mined. Unassigned reserves might or might not be mined in the future, with no immediate plans on being mined. It must be noted that unassigned coal reserves require significant amounts of capital spending to bring them online for production.
Within the Northern Appalachia region, Alpha operates out of its Cumberland and Emerald underground mining complexes, as well as five other underground mines, nine surface mines, and two coal preparation plants.
In the Central Appalachia region, Alpha operates out a staggering 50 underground mines, 13 surface mines, and 21 coal preparation plants.
Alpha’s operations in the Western segment are in the Powder River Basin from where its operates out of only two surface mines, in both the Belle Ayr and Eagle Butte mining complexes, shipping a total of 38.2 million tons of coal in 2013.
© 2013 Market Realist, Inc.