MCPA Conference Speaks on Importance of Coal and Steel

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MCPA MSHA Alliance Signing

Left (front) Chris Anderson, Robindale Energy; Andy Eidson, Alpha Metallurgical Resources; Ben Beakes, MCPA president; Wayne Palmer, MSHA; Scott Kreutzer, RAMACO Resources and MCPA chairman; and Brian Keaton, Alpa Metallurgical Resources; and (back) Daniel Sole, United Coal Co.; Tyler Fields, RAMACO Resources; Aaron Price, Coronado Global Resources; and Dan Curry, Allegheny Met Resources.

Steel is essential for all aspects of American life. Consequently, metallurgical coal –  which makes steel – is critical, American Iron and Steel Institute (AISI) President and CEO Kevin Dempsey told attendees at the Metallurgical Coal Producers Association (MCPA) annual conference and expo, which opened May 19 in Roanoke, W.Va. His comments relating to the importance of the industry were echoed by additional speakers during the day, including Ted O’Brien with Oluma Resources, LLC.

MCPA Chairman Scott Kreutzer and MCPA President Ben Beakes welcomed attendees to the conference, which is centered around the theme, “Redesigning Resilience.” Speakers on opening day, in addition to Dempsey and O’Brien, included Wayne Palmer, assistant secretary of labor for the Mine Safety and Health Administration, and Mary Elizabeth Eckerson with Dominion Energy.

During day one of the conference, the MCPA also signed an agreement with MSHA, making the MCPA an official alliance partner with the federal agency. The alliance is designed to promote safer and more healthful working conditions at the nation’s mining operations and will provide coal mining personnel with information, guidance and access to training resources, helping to protect the health and safety of those working at coal mines and in preparation plants and mills. Key components of the alliance agreement focus on education and training, as well as outreach and communications, establishing specific goals to meet in each of those areas.

The industry, Dempsey said, supports nearly two million American jobs. Its two primary end-use markets are construction and automotive. He also noted that the steel saw a 12.6% decrease in imports in 2025, while production, demand and shipments were up. He pointed to current administration policies related to tariffs on steel as a driving factor in a 3.1% uptick in production and an upturn in export shipments. Dempsey noted raw steel production continues to rise in 2026, and that capacity and utilization are improving.

“Last year, for the first time in over a quarter century, the USA surpassed Japan in terms of total steel production, so we went from being the fourth largest steel producer in the world to the third,” Dempsey said. “And, while it’s improving, there is room to grow, and we have to continue to work to address challenges.”

He talked about the USA-Mexico-Canada (USMCA) agreement, noting efforts to strengthen it will close loopholes in trade policy. Currently, about 90% of U.S. steel exports go to those two countries. China and India continue to occupy the top spots in terms of steel production, with global steel overcapacity – driven primarily by China’s government-subsidized expansion – being a major challenge. Dempsey concluded his remarks, noting that steel production in the USA is the cleanest in the world, producing lower carbon emissions than in the past.

Palmer spoke to conference attendees about MSHA’s role, noting that emphasis is being placed on coordinated government efforts to revitalize the domestic mining industry. He noted that 135 new mines have opened and 90 closed mines have been reopened. Data, he noted, has shown no correlation between higher penalties and improved safety outcomes. Injury rates have continued to decline gradually, regardless of penalty spikes.

Palmer noted MSHA is consolidating from seven to five divisions for efficiency reasons. Additionally, he said, development of a Modernized Intelligence and Networked Ecosystem Mine platform is being used, which features voice-activated headsets, thermal imaging, photo and video capture capabilities, and automated documentation features, which are being piloted in select districts with the goal of faster and more consistent inspections. He also noted the use of autonomous drones and accident scene modeling and investigation, which result in quicker mine reopenings and better analysis.

Eckerson delivered remarks on behalf of Dominion Energy, giving a brief update on the Virginia City Hybrid Energy Center, noting the 610 MW facility in St. Paul, Va., recently celebrated 14 years in operation. The facility has helped reclaim legacy coal sites and improve local waterways by removing more than 4 million tons of GOB coal since 2012.

O’Brien, with Oluma Resources, focused his remarks on seaborne coking coal and what his presentation referenced as “the new world order.” He noted the USA has re-established itself as the dominant baseload exporter of coal, while Australia has been relegated to being a swing supplier due to policies, resource degradation and high costs. Diesel shortages and anti-mining government policies further add to Australia’s woes.

The major growth driver for coking coal demand, he said, is India, with steel export overcapacity in China remaining as a drag on global steel and coal demand. Southeast Asia, notably Indonesia, Malysia and Vietnam, is emerging as a significant buyer. Russia, he said, is also re-entering markets, despite sanctions, and Venezuela is re-emerging in lower-grade markets.

“Any change in trade relationship between the USA and China could be extremely meaningful in terms of opening up the Chinese market for U.S. tons,” O’Brien said. “India is one of the brightest stories out there right now. They have some very aggressive expansion plans and are currently producing about 200 million tons a year of steel with plans to get to 300 million tons a year by 2030.”



Source: www.coalage.com

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