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FOR IMMEDIATE RELEASE
January 16, 2001

NMA RELEASES COAL INDUSTRY FORECAST ALL-TIME RECORD LEVELS SEEN FOR U.S. COAL CONSUMPTION; PRODUCTION TO RISE IN 2001

Washington-- Coal use in the United States will reach an all-time high in 2001 totaling 1.085 billion tons, 21 million tons greater than the record 1.064 billion tons used in 2000, the National Mining Association today predicted.

This increase in coal use is driven by an unprecedented demand for affordable and reliable coal-fired electricity at a time when the nation is suffering through one of its coldest winters, according to NMA's "2001 Forecast of Coal Markets."

NMA President and CEO Jack N. Gerard said electric utilities have been the driving force behind the record consumption levels since the mid-1980's.

"Because of the strong U.S. economy and utilities' desire for a clean burning low cost fuel to produce electricity, America's coal mining companies are alive and well and are continuing to produce coal at near all-time historical levels," he stressed.

Gerard said the "man-on-the-street" sometimes does not realize what's behind the flip of the light switch and the reasons most regions of the country have electricity rates lower than in most other nations. "It is because of America's continued and increasing reliance on the country's most plentiful, reliable, clean and least costly energy resource, coal."

Gerard pointed out that consumers in regions reliant on coal for their electricity have dodged the natural gas price-bullet this winter. "Because of coal they have been spared spikes in their price of electricity. I know Californians are wishing they were as fortunate."

Exports in 2001 will add another 65.3 million tons to the overall demand for U.S. coal bringing total consumption levels to 1.151 billion tons, 2.4 percent or 27 million tons more than domestic demand plus exports in 2000.

After dropping slightly in 1999 and 2000, coal production in 2001 will return to near record levels and is expected to total 1.115 billion tons. This is 21 million tons higher than the 1.094 billion tons produced in 2000 and is within 2 million tons of the all-time record reached in 1998.

Production will come just short of meeting total demand for U.S. coal and the difference will be met with imports of 10 million tons and with a drawdown in stockpiles. By the end of 2001, coal stockpiles at utilities are expected to be lower than at any time since 1974 when consumption was less than one-half of current levels.