Geologic estimates and future costs of strip mining coal

Geologic coal-resource appraisals, which typically describe the location and general characteristics of coalbeds, do not generally provide enough information to estimate the cost of developing the resource or to predict the escalation of costs expected to result from physical depletion. This paper considers the nature of data and methods of appraisal required to provide this cost information to policymakers. Illinois is used as a prototype area for analysis because of its long history of coal mining and its demonstrated coal reserve base of strippable coal that exceeds all but two of the States in the United States. Evidence of gradual depletion of Illinois strippable coal reserves is provided by declining labor productivity, decreasing average mine size, and increasing overburden depth. The procedures used to estimate the costs of mining remaining deposits indicate that the physical characteristics that will affect mining costs most significantly are depth of overburden, thickness of coal seam, and areal extent of coal of the minable reserve blocks. Findings presented here provide guidelines for the collection of economic and geologic data in order to improve coal appraisals, particularly those currently in progress in the Western United States.