Coal Mining Outlook: International, National, and Virginia Trends

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Virginia Tech. Virginia Center for Coal and Energy Research.


Coal mining serves an important role as the economic catalyst for Southwest Virginia, providing high paying jobs in an area crippled by unemployment. There are numerous support industries in existence only because of coal mining. The ripple effects of mining are experienced throughout the state. Every ton of coal mined in Virginia contributes $27.11 to Virginia's economy, while every dollar paid to a miner has a $4.64 impact on Virginia's economy. The tax credit has had a pronounced effect on coal production in Virginia. After the tax credit was enacted, the declining trend in coal production has slowed down, and the production levels are higher than projected. As a result of these higher production levels, an additional $394 million in total impact has been generated, millions in severance and income taxes have been produced, and numerous coal mining jobs have been preserved.