Economic Impact of Coal Industry

According to our survey, a total of 883 individuals are employed by direct suppliers of coal mining in Alabama in 2018. These suppliers directed $76.5 million in payroll and $172 million in non-payroll spending in 2018. The met coal producers were responsible for 47% of suppliers’ activities. The overall industry’s (coal mining and direct suppliers) economic attributes are presented in Tables 8 thru 10. As reported in Table 8, the aggregate industry employment in 2018 was reported to be 3,084. The overall spending in 2018, was at $1.2 billion from which $374 million was payroll. Our research shows an employment growth of 6% and spending growth of 11% from 2017 to 2018. Finally, the underground met coal mining share of activities ranged from 71% of employment to 76% of total spending. Table 8: Coal Mining and Suppliers Data, Survey Results, 2017-2018 Year Employment Payroll Non-Payroll Total 2017 2,919 $339,031,403 $840,004,652 $1,095,986,888 2018 3,084 $373,920,537 $935,697,699 $1,217,892,319 Year Employment Payroll Non-Payroll Total 2017 807 $82,288,320 $185,576,530 $267,864,850 2018 903 $89,837,409 $196,816,864 $286,654,273 Table 10: Surface Mines and Suppliers- Survey Results, 2017-2018 Year Employment Payroll Non-Payroll Total 2017 2,112 $256,743,083 $654,428,122 $828,122,038 2018 2,181 $284,083,128 $738,880,835 $931,238,046 Table 9: Underground Mines and Suppliers- Survey Results, 2017-2018 Year Employment Payroll Non-Payroll Total 2017 72% 76% 78% 76% 2018 71% 76% 79% 76 Table 11: Underground Share of Activities, Survey Results, 2017-2018 ECONOMIC IMPACT Direct economic data are the necessary input for estimating the economic impact of the coal industry. Direct data, in this case, are the economic activities that are solely attributable to coal mining industry. Direct economic data of the coal mining industry is presented in Tables 12 through 14. To derive these figures, the financial information compiled from the survey research were adjusted using the employment ratio. More specifically, the employment data reported by the Alabama Mining and Reclamation Division was divided by the employment from the survey results. This ratio was then applied to financial expenditures collected from the membership survey. The estimated direct data figures are reported in Table 12. It is our estimate the coal mining industry produced $2.2 billion worth of coal in 2018. The Industry is estimated to be responsible for $348 million in payroll and 2,578 jobs in the state. Similarly, it is our estimate that the Industry’s direct suppliers produced $248 of output, $76 million of wages and salaries and 883 FTE jobs. ECONOMIC IMPACT OF THE COAL INDUSTRY ON THE STATE OF ALABAMA 15

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