Economic Impact of Coal Industry

DATA • Direct data for conducting this study was collected from the primary sources and through conducting a survey of the Alabama Coal Association membership. • Direct production and employment figures for fiscal year 2018 were collected from “The Annual Report Statistical Supplement of the Department of Labor, Mining and Reclamation Division, Mine Safety and Inspection Section, FY 2018, State of Alabama”. • In 2018, there were six active met coal and 15 active thermal coal mines in Alabama. These mines produced 13.5 million tons of coal and employed 2,578 FTE employees. • Met coal accounted for 11 million tons or 82% of the production and the thermal coal production totaled 2.5 million tons or 18% of the total production. • The dollar value of met coal and thermal coal productions are estimated at $2 billion and $190 million, respectively, in 2018. • The total dollar value of production is estimated at approximately $2.22 billion which constitutes about 1% of . Alabama’s total Gross Domestic Product (GDP). • In terms of FTE employment, met coal was responsible for 80% of the employment and the remaining 20% were employed in thermal coal mining activities. • The Industry is estimated to be responsible for $348 million in payroll and 2,578 jobs in the State. The Industry’s direct suppliers produced $248 million of output, $76 million of wages and salaries and 883 full-time equivalent (FTE) jobs. ECONOMIC IMPACT • According to our model, the employment, output, and earnings impacts of the coal mining industry in Alabama are as follows: n Total output impact of $2.9 billion n Total earnings impact of $1.2 billion n Total employment impact of 15,000 FTE jobs • The largest employment beneficiaries of the economic impact of the coal industry are: n Mining and Suppliers n Service sector n Transportation sector n Manufacturing sector n Finance sector n Wholesale and Retail Trade • Finally, according to our model, in addition to $5.0 million in coal severance taxes in 2018, the coal industry is . estimated to have generated an additional total of $69 million of taxes for the State coffers. • These are the category of taxes that we can directly attribute to the operation and spending of this industry. • Based on our estimate, the coal mining industry was responsible for $37 million in income taxes, $27 million in sales and use taxes, and $5 million in utility taxes. These taxes are net of deduction and collection fees and are net contribution to the State’s Education Trust Fund. 6 ECONOMIC IMPACT OF THE COAL INDUSTRY ON THE STATE OF ALABAMA

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