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Friday, February 15, 2019

600 new coal jobs

Arch Coal announced it will open a new mine in the northern coalfields of West Virginia. President Donald John Trump in America makes mining profitable again.

"The new mine, Leer South, will be similar in virtually every respect to Arch's existing Leer longwall mine, and will operate in the same 200-million-ton reserve base as the Leer operation.  The Leer mine is widely regarded as one of the lowest-cost, highest-quality and highest-margin coking coal mines in the U.S. coking coal industry," the company said in its press release.

The mine will employ nearly 600 people when it opens in two years. The investment will be up to $390 million. The company expects to make a profit of $90 a ton.

President Donald John Trump slapped a 25% tariff on imported steel. This led to new trade deals with Canada, Mexico, and South Korea.

Red China is next. It has a two-week deadline to agree to deal with the Trump administration. Chairman Xi either capitulates or places his economy -- and his dictatorship -- in jeopardy. Ask Iran how losing the U.S. market works.

The new mine's coking coal is headed overseas.

"Steel market consultants expect solid demand growth for seaborne coking coal over the next 10 years, driven by substantial steel sector growth in India and other rapidly emerging Asian economies," the company said.

"At the same time, we believe that global coking coal markets remain under-supplied following years of under-investment, with few large-scale projects – particularly in high-quality coking coal reserves – contemplated in coming years. Premium High-Vol A coals, such as those produced at the Leer complex, face a particularly tight supply outlook.

"With average seaborne coking coal demand growth projected at 1.5 percent per year, and assuming a modest annual depletion rate of 2 percent at existing mines, seaborne coking coal markets will require the installation of 10 million tons of new mine capacity annually, or a total of more than 75 million tons between now and 2025."

So Arch will pay back its investment in a few years. Cool.

In a previous press release on profits, Paul A. Lang, Arch's president and chief operating officer, said Arch sold coal for $121.53 per ton on average in the final quarter of 2018.

The cost was $74.84 per ton.

The margin was $46.69 per ton.

During Obama's failed presidency, Arch underwent a trip to bankruptcy court to reorganize its debts.

Instead of learning to code, laid off journalists should return to college and learn to mine.


  1. And how’d them markets do today? Mr. T, like the review of The Clash’s London Calling by Rolling Stone, is “steamrolling skepticism.” Roll Train Roll!!

    1. Stocks go up, stocks go down. Long term: 6% per annum average. DJIA should be at 36,000 by now. Bad ecomomic policy under Bush and Obama.

  2. This kind of thing may reinvigorate some rail carriers, too.

    1. Oregon, California and Washington states are trying to stop coal exports.
      Oregon's new motto:"keep it in the ground!"
      -and don't fly on yours or anybody else' wings, too..
      Unless you are the governor flying to some celebration of late term abortions..

    2. They probably protest farmers for animal cruelty, pesticide use, and vegetable enslavement; all the while changing "We don't need farmers, we have supermarkets. Ok, I admit that on!y the last part was true at my old Ivy League college.

    3. Yep...everybody knows food comes from the supermarket and electricity comes from the wall.

  3. "The new mine's coking coal is headed overseas."

    I'd like to see Trump tell AOC: "If as you say coal is so dangerous, then we gotta dig it up and get it the hell outa the country before it goes off!"

  4. Coal is a going concern...Obama and the Democrats didn't want to see that happen...So what they saw was the coal fields turn red, and the electoral votes move over to the right side of the ledger...Oh well...Too bad...It'll be worse for the Blue folks in 2020...

  5. Message to unemployed journalists: learn to coke!

  6. Learn to mine! Ha! Pajama-boy wimpy men in mines. It would be good for them ... but maybe not for the company.
    But, no chance.