What Is Coal?
Although it may not be as visible today as it was in the early 1900s, coal has emerged as a prevalent source of fuel and a valuable resource for meeting worldwide energy demand. Today, coal accounts for approximately 26 percent of the world's total energy consumption. And in the United States, coal produces almost 50 percent of the nation's electricity.
What Are the Benefits?
Coal has many important uses worldwide. In addition to generating electricity, coal is used in steel production, cement manufacturing and other industrial processes.
World coal consumption is projected to increase 74 percent from 2004 to 2030. The most significant increase in the use of coal will come from developing countries such as China and India. Led by strong economic growth and rising demand for energy, China and India will account for 72 percent of the projected increase.
With a 300-year supply of coal in the United States alone, the future of coal is promising. We anticipate new applications and growth potential for its use. In addition, new technologies will continue to enhance our ability to tap coal reserves while minimizing the effects of its extraction on the environment.
What Chevron Is Doing
As part of its diverse portfolio of energy resources, Chevron owns and operates three U.S.-based coal mines.
Chevron Mining Inc., formerly The Pittsburg & Midway Coal Mining Co. and Molycorp Inc., is Chevron's wholly owned diversified mining and marketing subsidiary. Founded in 1885, it is one of the oldest continuously operating mining companies in the United States and operates mines in McKinley County, New Mexico; Kemmerer, Wyoming; and North River, Alabama.
The company sells more than 12 million tons of coal annually and controls more than 200 million tons of coal reserves, including reserves of environmentally desirable low-sulfur coal.
In the United States, coal is used primarily to generate electricity, but it also is a valuable resource for various industries that use its ingredients to make plastics, tar, synthetic fibers and other products.
Additional Operations
Chevron Mining also has mineral interests in molybdenum, rare earth minerals and calcined petroleum coke, serving customers both in the United States and in international markets.
We own a 33 percent interest in Sumikin Molycorp, which manufactures rare earth neodymium compounds at its facilities in Japan.
Additionally, Chevron Mining Inc. owns and operates the Chicago Carbon Company, a 250,000-ton-per-year petroleum coke calciner in Lemont, Illinois. The petroleum coke produced at this facility is used primarily in the aluminum-manufacturing business.
Safety First
Following best practices across all subsidiary mining operations, Chevron employees are committed to operating in a safe and environmentally responsible manner. In 2007, our Kemmerer mine achieved two consecutive years without a lost-time injury. Our employees worked 2.1 million hours while setting a production record of 5.2 million tons of coal. Our Mountain Pass and Chicago Carbon facilities also operated without a lost-time injury in 2007.
Updated: March 2008