Former President Obama’s “war on coal” is over due in part to President Trump’s policies. The Corsa Coal Corporation just opened a new metallurgical coal mine, the Acosta Mine, about 60 miles south of Pittsburgh. The mine will create 70 to 100 new, direct, full-time jobs, which will pay an average of $80,000 to $100,000 annually, and about 500 indirect jobs.[i] The mine will have an operating life of at least 15 years. The company received a mining permit in 2013, but market conditions prevented it from opening the mine earlier. A rebound in the global steel market and more favorable federal policies have made it possible. Metallurgical coal is high-quality coal used in steelmaking.
President Trump’s policies of lowering the regulatory burden, simplifying and lowering taxes, stimulating infrastructure spending, and balancing economic growth and environmental policy are providing American industries with new life. U.S. coal companies have added 1,300 jobs since President Trump was elected in November—a 3 percent increase to 51,000 jobs.[ii]
Corsa Coal Corporation
Corsa Coal is the first American corporation to open a new coal mine in six years.[iii] The company plans to open another mine next year and a third in 2019.[iv] Corsa Coal received a $3 million grant from Pennsylvania’s Redevelopment Assistance Capital Program to finish the $15 million, 3,000 acre development project.[v] The Acosta Mine is at the bottom of a 120-foot-deep pit that took six months to excavate. The company expects the mine to produce 400,000 tons of metallurgical coal each year—the same amount as two other mines it owns: the Quecreek Mine, in Somerset County, Pennsylvania and the Casselman Mine in Grantsville, Maryland.
In May, the company reported its metallurgical coal prices increased 53 percent to $156.12 a ton in the year ending with the first fiscal quarter of 2017. During that quarter, the company’s net income was $10 million—222 percent higher than the same period the year before.
Most of the coal from the Acosta Mine will be exported. About 85 percent of Corsa’s coal is shipped to steelmakers in India, Korea, Argentina, Europe and the Middle East. The rest is sold to steel producers in Ohio and Illinois.
Corsa Coal has about 400 employees and operates three deep mines and two surface mines in Maryland and Pennsylvania as well as two deep mines and two open-pit active surface mines in Tennessee and Kentucky. The company’s sales in 2017 are expected to be between 1.325 and 1.475 million tons.
Conclusion
President Trump’s pro-energy policies and pro-business policies are invigorating U.S. production and manufacturing. The Corsa mine opening is a case in point, providing new jobs and helping a slumping American industry.
[i] Penn Live, Pa. coal country in national spotlight as new mine gets red carpet treatment, June 8, 2017, http://www.pennlive.com/news/2017/06/pa_town_in_national_spotlight.html
[ii] Power Source, New Somerset County coal mine in midst of political, economic debate, June 8, 2017, http://powersource.post-gazette.com/powersource/companies/2017/06/08/Coal-mines-political-economic-debate-industry-Somerset-County-Pennsylvania/stories/201706080146
[iii] Daily Caller, Another Promise Kept — First Coal Mine Opens Under Trump Administration, June 11, 2017, http://dailycaller.com/2017/06/11/another-promise-kept-first-coal-mine-opens-under-trump-administration/
[iv] Mining, New met-coal mine opens in Pennsylvania, June 12, 2017, http://www.mining.com/new-met-coal-mine-opens-pennsylvania/
[v] Trib Live, Trump wishes the best for new coal mine in Somerset County, June 8, 2017, http://triblive.com/local/westmoreland/12382174-74/live-corsa-coals-grand-opening-of-acosta-mine-in-somerset-county
