Recent analysis from SNL Energy based on Mine Safety & Health Administration (MSHA) data for 2014 indicates that productivity across the major coal basins of the USA has not only stabilised, but is improving in many cases. SNL says, “Even in Central Appalachia, where production has fallen, productivity has increased.” Coal miner productivity gains were seen in both underground and surface coal mines over the last two years.

Productivity, measured in clean coal tonnage produced per employee hour, peaked nationally in 2000 at 6.99 t/miner hour (N.B. short tons) and has dropped gradually since, according to Energy Information Administration (EIA) data. EIA lists several factors for the decline including technological constraints, stripping ratios, increased regulatory scrutiny, permitting challenges, skilled labour shortages, demographic shifts, longwall saturation and decreasing coal seam thickness.

SNL notes that a significant gap exists between coal basins. For example, Central Appalachia’s productivity rate has been around 1.37 t/h recently, while Illinois Basin’s rate was around 4.51 t/h. Rates for the Powder River Basin were above 30 t/h. “Generally, the coal industry has watched its productivity decline as a function of diminishing coal geology or a tendency to mine the cheapest and easiest to reach coal first,” SNL says.