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Strategies & Market Trends : Value Investing

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To: Sergio H who wrote (49885)	10/25/2012 8:50:02 PM
From: Spekulatius	Read Replies (1) of 78645

Coal from the powder river in Wyoming can be produced for ~10$per short ton of thermal coal. It is mined in an open pit. Coal from Virginia is mined used underground mining and costs many times more. It is of higher quality (less volatile, higher BTU per ton). I think you could get a good reference of east coal thermal coal in ANR's 10k or so, but i know for sure that they will never be able to mine a short ton for 10$/ton, it will be more like 30$ or thereabouts. What you have to consider is the total of mining and transportation cost however, so it is not as simple as just looking at mining cost. If I move a short ton of coal over several thousand mines to the point of consumption, the transportation cost will be many times the mining costs.

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