U.S. Coal Miners Are ‘Sold Out’ for 2022
- ‘We only have a small portion left to be sold,’ Peabody says
- Arch locked in 2022 pricing 20% higher than spot market
Photographer: Luke Sharrett/Bloomberg
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Almost every lump of coal that U.S. miners will dig out of the ground next year has already been sold, as surging natural gas prices prompt utilities to burn more of the dirtiest fossil fuel.
Peabody Energy Corp., the top American supplier, has contracts for more than 90% of its coal from the Powder River Basin region next year and all of the power-plant fuel from its other U.S. mines. And Arch Resources Inc., the No. 2 producer, has lined up deals with utilities for all of its 2022 output from the basin at an average price that’s 20% higher than current spot prices.