This report provides a breakdown of mining cash costs per tonne for individual coal operations, company production and country production.
The analysis covers 270 coal operations accounting for over 1,000Mt of coal production globally. Overall 30 companies have been included, ranging from the large producers, such Peabody Energy, Shenhua Energy, and Glencore, to smaller players, such as Whitehaven.
- Global coal mine gate costs vary considerably. Large opencast operations in the US Powder River Basin, can have costs below US$10/t, while deeper pits in Australia can have costs closer to US$50/t.
- Processing costs make a difference in mine gate cost. Indonesian thermal coal, with its low ash content (below 5%) does not need to be washed, reducing costs by up US$10/t in comparison to Australian and US operations.
- Low strip ratios will ensure most operations have low mining costs per tonne. Indeed strip ratios are often the determinant for whether a coal deposit is economically feasible. Many of the higher strip operations produce high quality metallurgical coal, which generate higher revenues to cover their operating costs.
- Large US producers in the powder river basin, like Arch Coal and Peabody Energy dominate the first quartile of the cost curve. Major exporting companies such as Glencore, BHP Billiton and Anglo American are in the second and third quartiles: they produce higher quality coal, which is becoming rarer.
- Country level average mine gate cash costs reflect the nature of their respective coal industries. For instance the US has high cost operations in the Appalachian basin, however these are offset by their large opencast operation in the powder river basins. Australia is firmly in the second half of the curve, due to its higher strip ratios, and processing costs.
Key Topics Covered:
- Cost Components
- Key Highlights
- Global Coal Cost Curve, 2015
- Company Cost Curve, 2015
- Country Cost Curve 2015
- Peabody Energy Cost Curve, 2015
- Peabody Energy
- China Shenhua Energy Co
- Arch Coal
- Alpha Natural Resources
- Anglo American
- China National Coal Group Corporation
- BHP Billiton
- Bumi Resources
- Yanzhou Coal
For more information about this report visit http://www.researchandmarkets.com/research/pbs2c5/global_coal_mine