A Study of U.S. Coal Mine Closures Since 1994

"The US coal mining industry has suffered a recent decline in profits caused by a combination of decline in commodity demand and more restrictive government regulation, forcing coal mining companies to cease production in numerous mines. A 40% decrease in the total number of coal mines occurred from 1994 to 2000. The number of mines remained relatively constant until 2008 when a change of government sparked a series of new environmental regulations which have contributed to another 15% decrease from 2008 to 2016. In contrast, production has only decreased by 3%, increasing from 1994 to 2008, and then decreasing since 2008. However, this value is skewed by large increases in sub-bituminous coal production and decreases in other coal ranks. Several aspects assist in executive decisions on mine longevity and economic worth. Studies of open source mine data collected by mandated government surveys coupled with commodity history can be used to find relationships between mine closures and these elements, which include statistics on production tonnage, seam height, coal rank, etc. This paper looks at coal mining trends since 1994 by comparing mine, market, and regulation factors that may influence mine closure. INTRODUCTION The US coal mining industry is currently experiencing a decline in both demand and commodity price while facing implementation of more stringent air and water pollution regulations. Company profits have decreased significantly, forcing several major companies to declare bankruptcy. The industry was required to adapt to survive. Many of these companies have adjusted by abandoning mines; the last two decades have seen a drastic decrease in the number of mines. To discover the primary causes of this downturn, three major aspects must be studied: properties of abandoned mines, commodity history, and regulatory impact. TRENDS SINCE 1994 Each year, US coal mines are required to submit data on a wide variety of categories to the Mine Safety and Health Administration (MSHA) and the US Energy Information Administration (EIA). This data includes administrative records, production values, and information regarding the attributes of the mined material and the mine itself. Each year since 1996, EIA has released a report summarizing the data from two years prior. Additionally, MSHA maintains a database containing a collection of all the most current data. These resources are the primary sources for the following figures."