WASHINGTON D.C. — Ben Beakes, president of the Metallurgical Coal Producers Association (MCPA) says he had a profitable trip to Washington D.C. last week for the World Steel General Assembly.
The assembly brought out some of the world’s largest steel producers, economists, executives, and others to have discussions and sessions about steel production and the trends and challenges around the world right now.
“It was an opportunity for central Appalachia metallurgical coal producers to be on the world stage, to tout the quality of metallurgical coal that we have here to serve the steel industry,” Beakes said Monday on MetroNews “Talkline.”
Beakes said he had direct conversations with leaders from around the world.
“At lunch, I was sitting with someone from Saudi Arabia, somebody from India, somebody from Germany, and another person from Canada,” Beakes said. “This was a great opportunity for us. They were very interested and glad to see that the coal industry is promoting the steel industry as one.”
Metallurgical helps make steel and according to Beakes, about 70 percent of steel producers in the world still use a blast furnace with met coal to make their steel.
“What we like to say is, ‘Met coal is really just a proxy for the steel, and steel is really just a proxy for the general economy,” Beakes said.
Beakes says the assembly was a prime opportunity to sell leaders on West Virginia’s very useful met coal.
“We have the best quality met coal here in central West Virginia,” Beakes said. “Why is that? There are different grades of metallurgical coal and steel producers have to blend a lot of different types of met coal in order to get the perfect blend for their blast furnace. The benefit of central Appalachia coal is that we have all the qualities here. We have the low-vol coals, the high-vol coals and the mid-vol coals.”
“Vol” stands for volatile matter that resides within the coal.
“We sit on the best reserves, we sit on the best quality, and we have great access to the ports here on the east coast,” he continued.
Beakes says that the region’s met coal is largely shipped out to countries around the world, so sitting down with these steel leaders from outside North America was important.
“Of all the met coal produced in the United States, 75 percent is exported,” Beakes said. “It’s going to Asia, India, South America with places like Brazil, and it’s going to Europe and some to Canada. We are heavily an export market. That is where we are sending our coal.
Beakes went on to say that 75 percent of the met coal produced and exported in the United States is going through the ports at Norfolk, Virginia, to then go to other countries.