Coal prices surge as Europe boycotts Russian gas, but it won't likely help U.S. mining much; Appalachia an example

Coal prices are surging as overseas customers are buying more, but Appalachian mines aren't likely to see much benefit because there aren't enough experienced coal miners at work to keep up with the demand, Justin Hicks reports for Ohio Valley ReSource, a consortium of public radio stations.

European countries have renewed interest in coal as they boycott Russian natural gas. "In traditional economics, high demand usually means suppliers ramp up production to take advantage of rising prices," Hicks reports. "But Erin Bates, communications director for the United Mine Workers of America, says coal companies can’t meet demand with their current labor force. Without workers, the coal in Appalachia isn’t going anywhere fast, Bates said. U.S. Energy Information Administration data shows production in Kentucky is only up about 4% compared to this time last year."

Also, Bates noted, coal companies wouldn't find it economical to boost production for a temporary boom. "The operators still find it to be too expensive to put the machinery back in there and get the employees back in there, even though the price is so high," Bates told Hicks. "They just don’t see the value in it." That's especially true since most coal is purchased years ahead of time; very little is available for sale on the spot market.