Global Coal Mine Gate Cost Curve

Published: September 2016
No. of Pages: 16
    ReportsandReports

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.

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.

Cost analysis is a hybrid approach which uses proprietary cost estimation models with results reconciled to data obtained from company reported financial statements. Costing methodology quantifies the costs incurred at each stage of production by process through the supply chain from mining through to free-on-board (FOB).

Overall 30 companies have been included, ranging from the large producers, such Peabody Energy, Shenhua Energy, and Glencore, to smaller players, such as Whitehaven and analysis covers over 270 coal operations accounting for over 1,000 Mt of coal production globally.

These costs are calculated to reflect the overall efficiency of each operation. All costs are calculated on an owner-operator basis, thereby eliminating the distortions to the cash cost ranking that contract rates (which include a capital servicing element) would introduce.

The report “Global Coal Mine Gate Cost Curve” provides an coal cost curve for 270 mines, with breakdown of costs into mining, processing, admin, royalties. Specific datasets include: Global Mine Level Cost Costs Global Company Equity Production Costs Country level Production Costs Peabody Cost Curve.

Companies mentioned in this report: Peabody Energy, China Shenhua Energy Co, Arch Coal, Glencore, Alpha Natural Resources, Anglo American, SUEK, China National Coal Group Corporation, BHP Billiton, KZRU, Bumi Resources, South32, Adaro, Yanzhou Coal, Banpu, Rio Tinto, Teck Resources, Exxaro, Mechel, Consol Ene.

Published By: GlobalData Energy
Product Code: Timetric2697


Did you find what you are/were looking for ? If not, read below and browse through other relevant pages for similar market research reports OR get in touch with us through the form/contact info in your right navigation panel and well share relevant market report titles for you to explore.

Related Reports:


Why ReportsnReports.com?

  • 500,000 market research reports and growing.
  • Top Fortune 500 Organizations trust us for research data.
  • 24/7 support on call as well as emails.
  • Your Details are safe with us.
  • Free support for your research requirements.
  • Report Delivery: Email
  • Delivery Time:
    • Upto 24 hrs - working days
    • Upto 48 hrs max - weekends and public holidays

Research Support / Custom Research

If this business study does not have the data and information analysis you need, contact us with your research requirements. We explore available market research reports to map your needs and share report titles with you. Alternatively, we can also offer custom research that suits your budget and timelines. Share your information requirements here.
Connect With Us
Email: sales@reportsandreports.com Call : + 1 888 391 5441

Subscription Option

Using our subscription option, you get access to market research reports and industry data of Consumer Goods market as per your needs. Get the best of Consumer Goods research reports by utilizing your research budgets in an optimum way.

More about our Subscription option
Report Alerts

Get Email alerts about market research reports from industries and publishers of your interest: