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.
Global Coal Cost Curve, 2015
Company Cost Curve, 2015
Country Cost Curve 2015
Peabody Energy Cost Curve, 2015
- Alpha Natural Resources
- Anglo American
- Arch Coal
- BHP Billiton
- Bumi Resources
- China National Coal Group Corporation
- China Shenhua Energy Co
- Consol Ene
- Peabody Energy
- Rio Tinto
- Teck Resources
- Yanzhou Coal