Four regional coal producers formed the Metallurgical Coal Producers Association in September 2020 in response to dynamic changes within the coal industry. Steel manufacturers rely on coal metallurgy to manufacture their products.

The four coal producers that formed and operate the new association include Coronado Coal LLC, Contura Energy, Inc., RAMACO Resources, Inc., and United Coal Company, which is a subsidiary of the international Metinvest Group. The Metallurgical Coal Producers Association plans to focus its initial efforts in Virginia and West Virginia.

Factors That Prompted Development of the New Association

According to David Stetson, chairman of the board of the Metallurgical Coal Producers Association, most people understand coal as something that generates electricity. One of the goals of the association is to increase the public’s understanding of the role of coal in their everyday lives. Buildings, bridges, cars, and household appliances are just four types of industrial and consumer products that require metallurgical coal to operate. Stetson also stated that the production and use of metallurgical coal plays an important part in the world’s economy.

The four coal producers responsible for forming the association did so after expanding and restructuring the previous organization known as the Virginia Coal and Energy Alliance. One of the big changes in the coal industry that prompted the formation of the Metallurgical Coal Producers Association was the reduced industrial and consumer demand for metallurgical coal. The reduction in demand created a shift toward producing more metallurgical coal.

Stetson, who is the CEO and Chairperson of Contura Energy, described in September 2020 how much the coal industry had changed since 2010. Speaking on behalf of the leaders of the other organizations, Stetson stated that all saw the value in pooling their resources and focusing their efforts on common goals. He also described how other companies in the metallurgical coal industry expressed potential interest in joining the Metallurgical Coal Producers Association.

What Is the Future of Metallurgical Coal?

Stetson stated that members of the new association predict and depend on increased manufacturing using metallurgical coal and new investments in critical infrastructure to continue driving demand. He acknowledges the market pricing for metallurgical coal has seen historic highs and lows but still feels confident it will continue serving as an essential ingredient in steel production for years to come.

The four coal producers have created numerous jobs throughout Virginia and West Virginia, which contributes positively to the overall economy of both states. Member organizations in the Metallurgical Coal Producers Association serve domestic and international customers to assist them with creating critical infrastructure.

About Metinvest Group

Metinvest Group, the parent company to United Coal Company, is an international organization operating in more than 100 countries. The company’s primary service includes mining and metallurgical assets, which it operates in Ukraine, United States, and Europe.

Metinvest oversees the entire production process through its many subsidiaries, starting with the extraction of iron ore and coal to the production of finished steel products. The Group strategically placed its metallurgical assets near ports and railway lines to ensure the company could send its steel products and raw materials to any destination in the world.

Ten companies operate under the umbrella of Metinvest’s metallurgy group. These include:

• Azovstal Iron and Steel Works in Ukraine produces steel, coke, rolled steel flats, shapes, and sections.
• Ferriera Valsider S.P.A. operates in Verona to produce hot rolled coils and plates.
• Ilyich Iron and Steel Works of Mariupol is an integrated Ukrainian plant where workers produce rolled products, steel, and pig iron. Ilyich’s basic products include alloy, low-alloy, and carbon flats for various applications.
• JSC Promet Steel in Bulgaria produces shapes and rolled steel sections.
• Metinvest Trametal S.P.A. operates in Italy and produces structural plates.
• PJSC Avdiivka Coke in Ukraine produces 30 types of chemical products and coke to provide steelmaking plants with blast furnace coke.
• PJSC Zaporizhia Coke produces at least 20 types of chemical products and coke.
• Spartan UK is the only plate producer located in the United Kingdom.
• Unisteel, a Ukrainian company, creates rolled galvanized steel thicker than any other steel plant in the country. Unisteel employees also produce zinc coatings according to customer demands.
• Zaporizhstal Iron and Steel Works in Ukraine operates a fully integrated cycle specializing in the production of cold and hot rolled steel, black tin, strips, and formed sections.

Metinvest was established as an SCM subsidiary firm in Ukraine in 2006. Before the end of its first year of operations, the company had acquired between a 27 and 100 percent stake in three other Ukrainian steel companies.

With a shortage of steel and mining workers in Ukraine, the Metinvest Group tackled the problem directly by opening the country’s first steel and mining university in June 2020. Admission to the Metinvest Polytechnic University is open to current Metinvest employees who want to increase their skills. Metinvest also admits people in the community wanting to earn entry-level certification to begin working in the steel and mining industry.

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