 "Illinois coal is in high demand overseas, and we have the resources and
infrastructure to take advantage of this opportunity for economic growth," Quinn
said. "Our rail lines and river ports, which we continue to improve under the
Illinois Jobs Now! capital construction program, give us a unique export
advantage over other states in the region."
Illinois exported a record 13 million tons of coal in 2012, a fivefold
increase from 2.5 million tons in 2010, according to "Realizing Illinois' Coal
Export Potential," a report by Energy Ventures Analysis Inc. for the Illinois
Office of Coal Development. The report was released at a meeting of coal
industry leaders Wednesday at St. Louis Downtown-Parks Airport near the
Mississippi riverfront.
Thanks in part to the rivers and railroads that allow Illinois coal to
cost-effectively reach export markets, Illinois' coal production is on the rise
while U.S. coal production is falling, according to the Energy Ventures report.
Total Illinois coal output rose 25 percent to 47.2 million tons in 2012, up from
37.8 million tons in 2011. Coal production nationwide fell 11 percent. Since
2010, when the revival of Illinois' coal industry began, total Illinois coal
output has risen 42 percent.
"Illinois coal has made significant inroads into the global market in the
last two years and, in doing so, has contributed to the increase in exports of
U.S. goods," said Adam Pollet, acting director of the Illinois Department of
Commerce and Economic Opportunity, which houses the state's coal development
office. "We are working hard to raise the awareness around the world of Illinois
coal and to help small producers in Illinois access overseas markets in Europe,
Asia and South America."
Illinois coal was shipped to at least 18 countries in 2011 and 2012,
according to the report. Illinois is now the fifth-largest coal-producing state
in the U.S., up from ninth in 2009. The industry supports more than 4,000 jobs
in Illinois.
The international steam coal market -- where coal is used to produce
electricity and heat large boilers and industrial furnaces -- is booming.
Illinois has the largest reserves of bituminous steam coal in the U.S.
Another Illinois advantage is the state's easy access by rail or barge to the
Gulf of Mexico, where coal is loaded onto oceangoing vessels for overseas sale.
To demonstrate the positive direction of coal exports, the meeting on Wednesday
included a tour of American Milling Co.'s new $13.6 million coal terminal
facilities at the nearby Port of Cahokia, which will be able to transfer up to
10 million tons of coal from rail to barges for export through New Orleans. The
state invested $1 million in the project through its coal development efforts.
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"Illinois coal exports have increased as a result of the overall
growth in the global steam coal market, the marketing efforts of the
major Illinois coal producers and traders, the relative
competitiveness of Illinois exports on the global market, and the
increased market acceptance of Illinois quality coal," said Emily
Medine, a principal at Energy Ventures Analysis and author of the
report.
The report recommends that Illinois
can help promote continued growth in exports through three types of
initiatives:
-
Maintaining and
improving Illinois' competitiveness from the mine to the
customer. The report notes the importance of maintaining
navigation on the Mississippi River and increasing the draft in
the Gulf of Mexico to allow for the loading of larger classes of
vessels referred to as "cape-sized." The ability to load the
larger vessels benefits the Illinois coal industry and many
other industries in the state.
-
Providing
technical assistance to the smaller producers of Illinois coal.
This group, in general, does not have an international sales
force or experience doing business overseas.
-
Expanding the global awareness of
Illinois coal. This includes educating Illinois trade
representatives about Illinois coal, supporting trade missions
to the markets that represent the best prospects for Illinois
coal and potentially encouraging foreign investment in Illinois
coal properties.
The Office of Coal Development, a division of the Illinois
Department of Commerce and Economic Opportunity, is working with
industry representatives on implementing several of the
recommendations from the report. To view a copy of the report, visit
illinoiscoal.biz.
[Text from file received from the
Illinois
governor's office]
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