June 18, 2024

Rachel Gleason, PA Coal Alliance

11,547 jobs, $3.8 billion in economic value

HARRISBURG, Pa.  (June 18, 2024) – The Pennsylvania Coal Alliance (PCA) today announced an independent report conducted by the Allegheny Conference on Community Development on the economic impact of the coal mining industry in Pennsylvania. The study revealed Pennsylvania’s coal industry remains a dominant force, creating economic value in communities across Pennsylvania with major capital investments, payrolls and an abundance of goods and services.

Pennsylvania’s coal mining industry is responsible for sustaining 11,547 full-time jobs, of which 5,164 are directly related to coal mining. These jobs produce $955 million in labor income of which nearly 49% is paid directly into the coal mining industry. The Pennsylvania coal sector also produces approximately $3.8 billion in economic output with $2.2 billion of this directly generated by the industry.

“Pennsylvania-mined coal remains a steadfast contributor to our state’s economy while producing reliable electricity both businesses and consumers demand,” Sen. Yaw (R-23), Co-Chair of the Legislative Coal Caucus said. “It is critical that the legislature present a unified voice for the industry moving forward and prioritize affordable, clean, and domestic energy development that promotes a diverse energy portfolio and a safe and dependable electric grid.”

Coal remains a crucial energy source for Pennsylvania and the United States.  In 2022 alone, Pennsylvania produced approximately 8.2 million tons of anthracite coal and 40.2 million tons of bituminous coal statewide from 226 combined mines and refuse sites. In that same year, 58% of Pennsylvania’s bituminous coal was utilized domestically to generate electricity, of which 24 million megawatt hours were generated in state. 

The study also focused on underground mining in two specific areas in Pennsylvania with a concentrated source of mining activity, including Greene and Washington counties, and the Allegheny Mountain Region, defined as Armstrong, Cambria, Clearfield, Indiana, Jefferson, Somerset, and Westmoreland counties in Pennsylvania. These areas rely heavily on the coal mining industry and produce significant economic results for local residents and businesses.

Economic Impact of the Underground Coal Mining Industry in Greene and Washington Counties

• Approximately 4,050 full and part-time jobs (2,300 direct)
• More than $1.7 billion in economic output ($1.3 billion direct)
• More than $1 billion added to the regional economy ($856 million direct)

Economic Impact of the Underground Coal Mining Industry in the Allegheny Mountain Region

• Approximately 1,928 full and part-time jobs (1,043 direct)
• More than $679 million in economic output ($492 million direct)
• Approximately $386 million added to the regional economy ($287 million direct)

Both metallurgical and thermal coal are extracted, processed and transported in and beyond Pennsylvania, creating economic activity that contributes to the state’s economic vitality.  Underground coal operations in the Allegheny Mountain Region mine high quality metallurgical coal, or coking coal, which is vital for the steelmaking process.  In 2023 alone, 2.8 million tons of metallurgical coal went to the production of steel in Pennsylvania.

Two elected state leaders confirmed the many benefits coal provides to communities within these regions.

“The coal industry has served as an anchor in the communities I serve,” said PA State Representative and Legislative Coal Caucus Co-Chair Jim Struzzi (R, Indiana). “This valuable resource is critical to the production of new steel and is essential to ensuring our national security and defense.”

Coal Caucus Co-Chair Frank Burns (D, Cambria) added, “You cannot deny the importance of coal to Pennsylvania’s economy, particularly in the Allegheny Mountain region,” said Burns. “The coal industry has invested tens of millions of dollars in innovative projects to annually treat billions of gallons of legacy acid mine drainage (AMD). I have seen successes firsthand with the increased tourism and activity in the restored Stoneycreek River.”

The study also offered insight into the indirect and positive impacts to the rail, waterway and truck transportation sectors, specific to coal. 

Rail Transportation

• Approximately 3,131 full and part-time jobs (1,400 direct)
• More than $1.0 billion in total output ($608 million direct)
• Approximately $567 million added to the Pennsylvania economy, ($333 million direct)

Truck Transportation

• Approximately 995 full and part-time jobs (445 direct)
• More than $326 million in total output ($193 million direct)
• Approximately $180 million added to the Pennsylvania economy ($106 million direct)

Waterway Transportation

• Approximately 339 full and part-time jobs (152 direct)
• More than $111 million in total output ($66 million direct)
• Approximately $61 million added to the Pennsylvania economy ($36 million direct)

“This study underscores the critical importance of the century-long relationship between coal and Pennsylvania’s trucking industry,” said Rebecca Oyler, President and CEO of the Pennsylvania Motor Trucks Association. “In 2022 alone, trucks moved approximately 19 million tons of bituminous coal, leading to substantial economic benefits across the Commonwealth.”

Tommy Sankey of the Keystone State Railroad Association also added, “Coal has always been a valuable and stable product for the railroad industry. We are proud to play a vital role for Pennsylvania coal and its contributions to the overall economy.”

For the study, the ACCD used various sources including the Mine Safety and Health Administration (MSHA), Pennsylvania Department of Energy, U.S. Bureau of Labor, U.S. Energy Information Administration (EIA), and the Pennsylvania Coal Alliance.

Download the full pdf of the report, The Economic Impact of the Coal Mining Industry in Pennsylvania.