
Coal mining and electric utility companies are not the same, but they are closely linked. Coal mining is the process of extracting coal from the earth, which is then used in coal-fired power plants to generate electricity. In the past, coal was used in many sectors, but now its primary use is for electricity generation. Coal-fired power plants burn coal to create steam, which turns turbines to generate electricity. Coal is still a significant source of electricity, contributing just over a third of the world's electricity generation. However, due to its environmental impact, there is a growing trend to move away from coal towards less polluting energy sources.
| Characteristics | Values |
|---|---|
| Definition | Coal mine: The process of extracting coal from the ground or from a mine. Electric utility company: Companies that generate and supply electricity to consumers. |
| History | Coal has been mined for thousands of years, with ancient China and the Roman Empire as some of the earliest miners. |
| Usage | Coal is used for electricity generation, smelting, alloy production, and cement production. |
| Environmental Impact | Coal is the largest contributor of CO2 emissions in the electricity sector and has significant negative environmental impacts on local ecosystems and communities. |
| Employment | The coal industry employed approximately 38,400 miners as of July 2022 in the US. |
| Recent Trends | Coal consumption has been declining in advanced economies but is still increasing in emerging economies with rising electricity demand. |
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What You'll Learn

Coal mining methods
Coal mine and electric utility company are not the same. Coal mining refers to the extraction of coal from the earth, whereas electric utility companies are businesses that provide electricity to consumers. Coal is used by utility companies as a fuel source to generate electricity.
There are two primary methods of coal mining: surface mining and underground mining. The choice between these two techniques is primarily determined by technological factors, such as the depth of the coal seam and the topography of the area. Economic and social factors also play a role in deciding whether to mine a coal reserve and which method to employ.
Surface Mining
Surface mining is used when coal is located less than 200 feet underground. It involves the removal of topsoil and layers of rock (overburden) to expose and extract coal seams. This method is generally less expensive and can be further classified into contour strip mining, area strip mining, open-pit mining, and auger mining. Mountaintop removal is a form of surface mining where the tops of mountains are removed for coal seam access.
Underground Mining
Underground mining, also known as deep mining, is employed when coal is found more than 200 feet below the surface. Miners travel deep into mine shafts and tunnels to reach the coal seams. This method can be categorized into two types: room-and-pillar mining and longwall mining. The former is more adaptable to varying coal seam thickness and geology, while the latter is typically used for seams with uniform characteristics.
Auxiliary and Unit Operations
Both surface and underground mining methods involve auxiliary and unit operations. Auxiliary operations include maintaining mine structural stability, ventilation systems, water-handling, and power systems, as well as transporting miners, supplies, and coal. Unit operations refer to the activities necessary to advance the working face and extract coal, such as cutting, drilling, blasting, loading, and hauling.
Coal Transportation
After coal is extracted, it is often sent to a nearby preparation plant for cleaning and processing to enhance its heating value. Coal can then be transported to consumers via trains, barges, ships, or slurry pipelines, with the choice of transportation influenced by factors such as distance and cost.
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Coal transportation
Trains and Rail Transportation
Rail transportation is the most common mode of transporting coal over long distances. In the United States, trains transport nearly 70% of coal deliveries for at least part of the journey from mines to consumers. These trains, known as unit trains, can carry 10,000 to 15,000 tons of coal in a single shipment, with groupings of 100 or more cars, each having a capacity of 100 to 110 tons. Rail transportation offers advantages such as high volume shipments, mechanical efficiency, and dedicated origin and destination, making it a capital-intensive but attractive choice for long-term, long-distance coal transportation.
Barges and Waterways
Barges play a significant role in coal transportation on rivers and lakes. In the United States, coal is transported on waterways like the Cumberland, Ohio, Tennessee, and Mississippi rivers. Each barge can hold up to 1,500 tons of coal, and the number of barges towed depends on the dimensions of the waterway. While this method offers cost efficiency, it often results in slower delivery times due to the circuitous nature of waterways.
Ships and Oceans
For international coal transportation, ships are used to transport coal on the Great Lakes and oceans to consumers in the United States and other countries. This method allows for the distribution of coal to both domestic and international markets.
Trucks and Road Transportation
Trucks are used for short-distance coal transportation, especially when the power plant is in close proximity to the mine. On-highway trucks typically have smaller payloads, not exceeding 25-ton capacities. Trucks offer advantages over railroads in negotiating severe grades and curves, and roads can be constructed or resurfaced with lower capital investments.
Conveyors, Trams, and Slurry Pipelines
Conveyors are used to transport coal over short distances, especially in challenging terrain, and can even be extended to reach barge-loading stations for further transportation via barges. Trams are another mode of short-distance coal transportation within mines. Slurry pipelines, a method not currently used in the United States, involve transporting a mixture of crushed coal and water or other liquids.
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Coal-fired power plants
A coal mine is a site where coal is extracted from the ground through processes such as surface mining and underground mining. On the other hand, an electric utility company is an organisation that deals with the generation, transmission, distribution, and sale of electricity to consumers. While coal mines provide the raw material (coal) for some electric utility companies, they are not the same. Coal-fired power plants, owned by electric utility companies, burn coal to generate electricity.
The process by which coal-fired power plants generate electricity is known as the Rankine cycle. First, coal is pulverized and burned in a boiler, producing heat. This heat is transferred to pipes containing high-pressured water, which boils to become steam. The steam then travels through a turbine, causing it to rotate at high speeds, which spins a generator to produce electricity. The electricity is then fed into the electrical grid for consumption.
The operation of coal-fired power plants requires enormous amounts of coal. For example, a 1000 MWe coal plant consumes 9000 tonnes of coal daily, equivalent to a full trainload. As a result, coal-fired power plants are typically located near coal mines to reduce transportation costs.
Despite their prevalence, coal-fired power plants have significant environmental and health impacts. They contribute to air pollution, leading to various illnesses and early deaths. As a result, there is a growing trend towards phasing out unabated coal plants by 2040 to align with net-zero emissions targets. This involves repurposing coal plants, transitioning to cleaner energy sources, and implementing less polluting technologies, such as carbon capture, utilisation, and storage (CCUS).
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Coal consumption
The consumption of coal involves its extraction through surface and underground mining methods. Surface mining, or mountaintop removal, is prevalent when coal seams are within 200 feet of the surface, as it is more cost-effective. Large machines are employed to remove topsoil and layers of rock, exposing the coal seams. In contrast, underground mining, or deep mining, involves accessing coal located hundreds or thousands of feet below the surface using vertical mine shafts and tunnels. After extraction, the coal may be processed to enhance its heating value by removing impurities.
Transportation of coal from mines to consumers is primarily achieved through trains, barges, and ships. In the United States, trains transport nearly 70% of coal deliveries. Coal-fired power plants are often located near coal mines to reduce transportation costs.
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Environmental impact
A coal mine extracts coal from the ground, whereas an electric utility company uses coal to generate electricity. Therefore, the environmental impact of these two industries differs.
Coal mining has a significant environmental impact, particularly on the physical environment. Surface mining, which is the most common method of coal mining in the United States, involves removing layers of soil and rock to expose underground coal deposits. This process can lead to the clearing of forests and the displacement or death of wildlife. It can also cause erosion and the silting of streams, which can harm aquatic life. Mountaintop removal is an especially destructive form of surface mining, as it involves using explosives to remove the tops of mountains, permanently changing the landscape and burying headwater streams.
Underground mining, on the other hand, generally affects the landscape less, but it is not without its environmental impacts. The ground above mine tunnels can collapse, and acidic water can drain from abandoned mines. Additionally, methane gas in coal deposits can explode if it becomes concentrated, and coal dust and water runoff must be controlled to minimise their environmental impact.
Electric utility companies that use coal as a fuel source contribute to air pollution and climate change. When coal is burned, it releases airborne toxins and pollutants such as mercury, lead, sulfur dioxide, nitrogen oxides, particulates, and heavy metals. These emissions have been linked to asthma, cancer, heart and lung ailments, neurological problems, and other severe health issues.
However, there are technologies available to reduce the environmental impact of coal-fired power plants, such as carbon capture and flue gas desulfurization equipment ("scrubbers"). Additionally, waste products from burning coal can be reused and recycled to produce cement and synthetic gypsum for wallboard.
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Frequently asked questions
Coal mining is the process of extracting coal from the ground or from a mine. Coal is valued for its energy content and has been widely used to generate electricity since the 1880s.
An electric utility company is an entity that generates and distributes electricity for sale, often over a regulated territory. Coal-fired power plants burn coal to make steam, which turns turbines to generate electricity.
No, they are not the same. Coal mines extract coal from the ground, whereas electric utility companies generate and distribute electricity, often by burning coal.
Yes, electric utility companies use coal to generate electricity. In 2022, coal accounted for about 19.5% of U.S. electricity generation.
Yes, coal mines can sell coal directly to electric utility companies. Some coal consumers, such as coal-fired electric power plants, are located near coal mines to lower transportation costs.











































