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US to become a major exporter of coal in 2008

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24 March 2008 @ 05:01 am ET
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Coal executives say that they expect exports to reach 80 million tons this year, and with railroad and port improvements, to rise to as much as 120 million tons in the next few

Meanwhile, imports of coal are decreasing gradually as producers in Colombia and Venezuela turn to markets other than the United States for higher prices. The shifts are further tightening supplies of coal in the Eastern United States, where stiffening regulations and various mine closings have limited output in recent years.

England, the country that used its vast coal stocks to pioneer industrial development in the 18th century, has become a major coal importer in recent years.

Meanwhile, India is building huge coal plants that will require growing imports, while Russia is using more and more coal to make natural gas available for export.

The falling dollar has contributed to US coal exports, which makes U.S. coal cheaper on world markets. But there are longer term reasons for the world to turn to the U.S., which has 27 percent of the world's coal reserves, more than any other country.

China is building a series of coal fired power plants. The nation is consuming so much coal that its ability to export is curtailed it is expected to become a net importer.

Major exporters such as South Africa, Indonesia and Vietnam are cutting back for a variety of reasons, including growing domestic needs and local power shortages. Recent flooding in Australia has cut exports, for a short while and an earthquake closed a major mine in Germany.

Meanwhile, India is building huge coal plants that will require growing imports, while Russia is using more and more coal to make natural gas available for export.

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