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This excerpt taken from the ACI 10-K filed Mar 1, 2010. Coal
Characteristics
In general, end users characterize coal as steam coal or
metallurgical coal. Heat value, sulfur, ash, moisture content,
and volatility in the case of metallurgical coal, are important
variables in the marketing and transportation of coal. These
characteristics help producers determine the best end use of a
particular type of coal. The following is a description of these
general coal characteristics:
Heat Value. In general, the carbon content of
coal supplies most of its heating value, but other factors also
influence the amount of energy it contains per unit of weight.
The heat value of coal is commonly measured in Btus. Coal is
generally classified into four categories, ranging from lignite
through subbituminous and bituminous to anthracite, reflecting
the progressive response of individual deposits of coal to
increasing heat and pressure. Anthracite is coal with the
highest carbon content and, therefore, the highest heat value,
nearing 15,000 Btus per pound. Bituminous coal, used primarily
to generate electricity and to make coke for the steel industry,
has a heat value ranging between 10,500 and 15,500 Btus per
pound. Subbituminous coal ranges from 8,300 to 13,000 Btus per
pound and is generally used for electric power generation.
Lignite coal is a geologically young coal which has the lowest
carbon content and a heat value ranging between 4,000 and 8,300
Btus per pound.
Sulfur Content. Federal and state
environmental regulations, including regulations that limit the
amount of sulfur dioxide that may be emitted as a result of
combustion, have affected and may continue to affect the demand
for certain types of coal. The sulfur content of coal can vary
from seam to seam and within a single seam. The chemical
composition and concentration of sulfur in coal affects the
amount of sulfur dioxide produced in combustion. Coal-fueled
power plants can comply with sulfur dioxide emission regulations
by burning coal with low sulfur content, blending coals with
various sulfur contents, purchasing emission allowances on the
open market
and/or using
sulfur-dioxide emission reduction technology.
All of our identified coal reserves have been subject to
preliminary coal seam analysis to test sulfur content. Of these
reserves, approximately 79.3% consist of compliance coal, while
an additional 6.1% could be sold as low-sulfur coal. The balance
is classified as high-sulfur coal. Higher sulfur coal can be
burned in plants equipped with sulfur-dioxide emission reduction
technology, such as scrubbers, and in facilities that blend
compliance and noncompliance coal.
Ash. Ash is the inorganic residue remaining
after the combustion of coal. As with sulfur, ash content varies
from seam to seam. Ash content is an important characteristic of
coal because it impacts boiler performance and electric
generating plants must handle and dispose of ash following
combustion. The composition of the ash, including the proportion
of sodium oxide and fusion temperature, are important
characteristics of coal and help determine the suitability of
the coal to end users. The absence of ash is also important to
the process by which metallurgical coal is transformed into coke
for use in steel production.
Moisture. Moisture content of coal varies by
the type of coal, the region where it is mined and the location
of the coal within a seam. In general, high moisture content
decreases the heat value and increases the weight of the coal,
thereby making it more expensive to transport. Moisture content
in coal, on an as-sold basis, can range from approximately 2% to
over 30% of the coal’s weight.
Other. Users of metallurgical coal measure
certain other characteristics, including fluidity, swelling
capacity and volatility to assess the strength of coke produced
from a given coal or the amount of coke that certain types of
coal will yield. These characteristics may be important elements
in determining the value of the metallurgical coal we produce
and market.
These excerpts taken from the ACI 10-K filed Feb 27, 2009. Coal
Characteristics
In general, end users characterize coal of all geological
compositions as steam coal or metallurgical coal. Heat value,
sulfur and ash and moisture content, and volatility in the case
of metallurgical coal, are the most important variables in the
marketing and transportation of coal. These characteristics help
producers determine the best end use of a particular type of
coal. The following is a description of these general coal
characteristics:
Heat Value. In general, the carbon content of
coal supplies most of its heating value, but other factors also
influence the amount of energy it contains per unit of weight.
The heat value of coal is commonly measured in Btus. Coal is
generally classified into four categories, ranging from lignite
through subbituminous and bituminous to anthracite, reflecting
the progressive response of individual deposits of coal to
increasing heat and pressure. Anthracite is coal with the
highest carbon content and, therefore, the highest heat value
nearing 15,000 Btus per pound. Bituminous coal, used primarily
to generate electricity and to make coke for the steel industry,
has a heat value ranging between 10,500 and 15,500 Btus per
pound. Subbituminous coal ranges from 8,300 to 13,000 Btus
per pound and is generally used for electric power generation.
Lignite coal is a geologically young coal which has the lowest
carbon content and a heat value ranging between 4,000 and 8,300
Btus per pound.
Sulfur Content. Federal and state
environmental regulations, including regulations that limit the
amount of sulfur dioxide that may be emitted as a result of
combustion, have affected and may continue to affect the demand
for certain types of coal. The sulfur content of coal can vary
from seam to seam and within a single seam. The chemical
composition and concentration of sulfur in coal affects the
amount of sulfur dioxide produced in combustion. Coal-fueled
power plants can comply with sulfur dioxide emission regulations
by burning coal with low sulfur content, blending coals with
various sulfur contents, purchasing emission allowances on the
open market
and/or using
sulfur-reduction technology.
All of our identified coal reserves have been subject to
preliminary coal seam analysis to test sulfur content. Of these
reserves, approximately 73.4% consist of compliance coal, while
an additional 8.7% could be sold as low-sulfur coal. The balance
is classified as high-sulfur coal. Higher sulfur noncompliance
coal can be burned in plants equipped with sulfur-reduction
technology, such as scrubbers, and in facilities that blend
compliance and noncompliance coal. We expect that all new
coal-fueled power plants built in the United States will use
some type of sulfur-reduction technology and, as such, the
premiums offered for lower sulfur coal may decrease in the
future.
Ash. Ash is the inorganic residue remaining
after the combustion of coal. As with sulfur, ash content varies
from seam to seam. Ash content is an important characteristic of
coal because it impacts boiler performance and electric
generating plants must handle and dispose of ash following
combustion. The composition of the ash, including the proportion
of sodium oxide, and fusion temperature are important
characteristics of coal and help determine the suitability of
the coal to end users. The absence of ash is also important to
the process by which metallurgical coal is transformed into coke
for use in steel production.
Moisture. Moisture content of coal varies by
the type of coal, the region where it is mined and the location
of the coal within a seam. In general, high moisture content
decreases the heat value and increases the weight of the coal,
thereby making it more expensive to transport. Moisture content
in coal, on an as-sold basis, can range from approximately 2% to
over 30% of the coal’s weight.
Other. Users of metallurgical coal measure
certain other characteristics, including fluidity, swelling
capacity and volatility to assess the strength of coke produced
from a given coal or the amount of coke that certain types of
coal will yield. These characteristics may be important elements
in determining the value of the metallurgical coal we produce
and market.
Coal Characteristics In general, end users characterize coal of all geological compositions as steam coal or metallurgical coal. Heat value, sulfur and ash and moisture content, and volatility in the case of metallurgical coal, are the most important variables in the marketing and transportation of coal. These characteristics help producers determine the best end use of a particular type of coal. The following is a description of these general coal characteristics: Heat Value. In general, the carbon content of coal supplies most of its heating value, but other factors also influence the amount of energy it contains per unit of weight. The heat value of coal is commonly measured in Btus. Coal is generally classified into four categories, ranging from lignite through subbituminous and bituminous to anthracite, reflecting the progressive response of individual deposits of coal to increasing heat and pressure. Anthracite is coal with the highest carbon content and, therefore, the highest heat value nearing 15,000 Btus per pound. Bituminous coal, used primarily to generate electricity and to make coke for the steel industry, has a heat value ranging between 10,500 and 15,500 Btus per pound. Subbituminous coal ranges from 8,300 to 13,000 Btus per pound and is generally used for electric power generation. Lignite coal is a geologically young coal which has the lowest carbon content and a heat value ranging between 4,000 and 8,300 Btus per pound. Sulfur Content. Federal and state environmental regulations, including regulations that limit the amount of sulfur dioxide that may be emitted as a result of combustion, have affected and may continue to affect the demand for certain types of coal. The sulfur content of coal can vary from seam to seam and within a single seam. The chemical composition and concentration of sulfur in coal affects the amount of sulfur dioxide produced in combustion. Coal-fueled power plants can comply with sulfur dioxide emission regulations by burning coal with low sulfur content, blending coals with various sulfur contents, purchasing emission allowances on the open market and/or using sulfur-reduction technology. All of our identified coal reserves have been subject to preliminary coal seam analysis to test sulfur content. Of these reserves, approximately 73.4% consist of compliance coal, while an additional 8.7% could be sold as low-sulfur coal. The balance is classified as high-sulfur coal. Higher sulfur noncompliance coal can be burned in plants equipped with sulfur-reduction technology, such as scrubbers, and in facilities that blend compliance and noncompliance coal. We expect that all new coal-fueled power plants built in the United States will use some type of sulfur-reduction technology and, as such, the premiums offered for lower sulfur coal may decrease in the future. Ash. Ash is the inorganic residue remaining after the combustion of coal. As with sulfur, ash content varies from seam to seam. Ash content is an important characteristic of coal because it impacts boiler performance and electric generating plants must handle and dispose of ash following combustion. The composition of the ash, including the proportion of sodium oxide, and fusion temperature are important characteristics of coal and help determine the suitability of the coal to end users. The absence of ash is also important to the process by which metallurgical coal is transformed into coke for use in steel production. Moisture. Moisture content of coal varies by the type of coal, the region where it is mined and the location of the coal within a seam. In general, high moisture content decreases the heat value and increases the weight of the coal, thereby making it more expensive to transport. Moisture content in coal, on an as-sold basis, can range from approximately 2% to over 30% of the coal’s weight. Other. Users of metallurgical coal measure certain other characteristics, including fluidity, swelling capacity and volatility to assess the strength of coke produced from a given coal or the amount of coke that certain types of coal will yield. These characteristics may be important elements in determining the value of the metallurgical coal we produce and market. | EXCERPTS ON THIS PAGE:
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