Top producers in Central Appalachia, a coal region that has been in a long-term decline, increased production by 31.7% in the 12 month-period that ended March 31, compared to the prior-year period.

Meanwhile, the top producers in other major eastern U.S. coal regions have hiked output as the entire sector bounced back from sharp decreases in early 2020 amid the COVID-19 pandemic, according to S&P Global Market Intelligence data. The top 25 mines in Northern Appalachia increased production by 12.6% in the period while Illinois Basin coal production rose by 7.0%.

Central Appalachia's top producers' volumes surge 31.7%

Central Appalachia's top 25 producers mined 29.7 million tons of coal in the 12-month period ended March 31. Mining companies in the region have transitioned to a sharper focus on metallurgical grade coal used to make steel as power plant customers retire. The region's viability is increasingly tied to international demand. The high vol A coking coal price for coal shipped out of the U.S. East Coast was priced at $470 per tonne as of May 19, up 161.1% year over year, according to S&P Global Commodity Insights data.

Central Appalachia coal producer Alpha Metallurgical Resources Inc. recently completed a 15-year strategic plan. President and CFO Andy Eidson said on a May 5 earnings call the company plans to continue to provide a level of production consistent with its recent average production rates for the next 15 years without needing to turn to any inorganic growth.

The largest mine in the region, Coronado Global Resources Inc.'s Buchanan No. 1 mine in Virginia, produced 4.8 Mt of coal in the 12-month period, jumping 30.5% year over year. CEO and Managing Director Garold Spindler said on the company's May 10 earnings call that the pulverized coal injection, or PCI, product output at its Buchanan mine was "flat out and fully booked" as the world looks to replace PCI volumes from Russia after the country invaded Ukraine in late February.

Top Northern Appalachia mines' coal production up by 12.6%

The 25 largest coal mines in Northern Appalachia produced 79.1 Mt of coal in the 12-month period, up from 70.2 Mt of coal from the same mines in the prior-year period. Miners in the region produce both metallurgical and thermal coal and have relatively easy access to export facilities and population centers in the eastern U.S.

Consol Energy Inc. owns the Bailey mine, the largest in the area in terms of output. Bailey is part of a three-mine complex in Pennsylvania that includes the Enlow Fork and Harvey mines, all of which ramped up production in the 12-month period ended March 31.

"We expect coal demand to remain robust domestically as well as internationally due to tight supply," Consol President and CEO Jimmy Brock said on a May 3 earnings call.

Largest Illinois Basin producers increase coal output by 7.0%

Alliance Resource Partners LP's River View mine is the largest in the Illinois Basin, and it increased production by 9.3% in the period as the industry benefited from elevated prices. The top 25 Illinois Basin producers, which primarily sell coal to power generators, increased cumulative production to 70.9 Mt in the 12-month period.

"I believe energy prices will be at elevated levels as long as there is conflict with Russia and Ukraine," Alliance President and CEO Joseph Craft said on a May 2 earnings call.

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