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A coal state vies to share in global boom
West Virginia sees opportunity to sell mining equipment to China and, perhaps, more coal to Europe.
By Tom A. Peter | Staff writer of The Christian Science Monitorfrom the November 6, 2007 edition
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Morgantown, W.Va. - China and other developing nations' hunger for coal is proving to be both a financial boon and logistical challenge for small but coal-rich states like West Virginia.
Third-world consumption has opened new markets and boosted coal prices, but it's come in tandem with shortages in mining equipment, like tires and steel, that raised the cost of mining and forced some companies to change their operations to avoid productivity losses.
All of this has pushed West Virginia, not exactly a major international player, onto the world stage. The state's governor, Joe Manchin III, is currently leading a delegation of local mining supply and equipment companies through China to improve trade relations and to encourage West Virginian firms to take advantage of eager Asian buyers.
"We have tremendous opportunities," said Governor Manchin on Friday, during a call from China with reporters. While relatively little coal reaches China from West Virginia, the state is home to a number of mining-support companies that sell equipment to China.
US mining equipment, made to conform to America's safety standards, is particularly attractive in China, where, on average, more miners die in the first week of every year than in an entire year in the US.
Manchin says the Chinese "are very open to tell you that the technology that's needed for them to become more efficient and more safe is the technology that's been provided by the state of West Virginia."
The Mountain State's growing relationship with China, inside and outside the coal industry, is seen in its overall exports to China, which rose 68.8 percent between 2004 and 2006.
"[China] needs technology, equipment, and also management skills," says Qingyun Sun, associate director of the US-China Energy Center at West Virginia University (WVU) here. "West Virginia is a traditional coal-production state, [and] we have many equipment manufacturers, coal-mine technicians, and ... a very good safety record."
A reconfigured global coal market
Even for West Virginia, whose location makes it impractical to ship coal directly to China in most cases, export markets are being reshaped by the developing world's rising demand for coal. The state accounts for half of all US coal exports, so these new markets could have far-reaching effects for West Virginia.
In January, for the first time in recent history, China became a net importer of coal. Meanwhile, Russia, a large coal supplier, was exporting less coal so it could meet its own needs. Countries like India and Vietnam are also looking for more coal to fuel their development booms.
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