We are one of America’s premier coal suppliers, ranked third largest
among publicly-traded U.S. coal producers. We are the nation’s leading
supplier and exporter of metallurgical coal for use in the steel-making process
and a major supplier of thermal coal to electric utilities and manufacturing
industries across the country.
We are one of the premier coal producers in the United States. We are the largest
coal company in Central Appalachia, our primary region of operation, in terms
of revenue, tons produced and total coal reserves.
Customers for our steam coal product include primarily electric power utility
companies who use our coal as fuel for their steam-powered generators. Customers
for our metallurgical coal include primarily steel producers who use our coal
to produce coke, which is in turn used as a raw material in the steel manufacturing
process.
Mining Methods
We produce coal using four distinct mining methods: underground room and pillar,
underground longwall, surface and highwall mining, which are explained as follows:
In the underground room and pillar method of mining, continuous mining machines
cut three to nine entries into the coal bed and connect them by driving crosscuts,
leaving a series of rectangular pillars, or columns of coal, to help support
the mine roof and control the flow of air. Generally, openings are driven 20
feet wide and the pillars are 40 to 100 feet wide. As mining advances, a grid-like
pattern of entries and pillars is formed. When mining advances to the end of
a panel, retreat mining may begin. In retreat mining, as much coal as is feasible
is mined from the pillars that were created in advancing the panel, allowing
the roof to fall upon retreat. When retreat mining is completed to the mouth
of the panel, the mined panel is abandoned.
In longwall mining (which is a type of underground mining), a shearer (cutting
head) moves back and forth across a panel of coal typically about 1,000 feet
in width, cutting a slice approximately 3.5 feet deep. The cut coal falls onto
a flexible conveyor for removal. Longwall mining is performed under hydraulic
roof supports (shields) that are advanced as the seam is cut. The roof in the
mined out areas falls as the shields advance.
Surface mining is used to extract coal deposits found close to the surface.
This method involves removal of overburden (earth and rock covering coal) with
heavy earth moving equipment, including large shovels and draglines, and explosives,
followed by extraction of coal from coal seams. After extraction of coal, disturbed
parcels of land are reclaimed by replacing overburden and reestablishing vegetation
and plant life.
We have coal supply commitments with a wide range of electric utilities, steel
manufacturers, industrial customers and energy traders and brokers. By offering
coal of both steam and metallurgical grades, we are able to serve a diverse
customer base. This market diversity allows us to adjust to changing market
conditions and sustain high sales volumes. The majority of our customers purchase
coal for terms of one year or longer, but we also supply coal on a spot basis
for some customers.
Competition
The coal industry in the United States and overseas is highly competitive, with
numerous producers selling into all markets that use coal. We compete against
large and small producers in the United States and overseas such as Peabody
Energy Corporation (“Peabody”), Rio Tinto Energy America, Inc.,
Arch Coal, Inc. (“Arch”), CONSOL Energy Inc. (“CONSOL”).