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Texas’s other black gold

Published by
World Coal,


Texas Mining and Reclamation Association.

In 2014, to confirm that lignite coal mining, the manufacture of activated carbon from lignite coal and coal-fired electric power generation are important economic engines in Texas, the Texas Mining and Reclamation Association (TMRA), a state trade association, commissioned an economic impact study through the Center for Economic Development and Research (CEDR) at the University of North Texas.

Using the IMPLAN economic input-output model, developed by the Minnesota IMPLAN Group and widely used in academic and professional research, the study confirmed that economic activity generated by these industries spark business activity up and down their respective supply chains, creating new jobs and income for Texas residents.

Moreover, estimations used to isolate lignite coal mining impacts show the specific importance of this sector. Lignite coal mining and reliable, cost-effective coal-fired power generation help Texas provide a highly diversified energy portfolio, which benefits the state’s businesses and residents, while giving the state a competitive advantage in attracting and retaining business. The study also noted that power generation facilities fueled by Powder River Basin sub-bituminous coal further boost state economic activity and contribute to energy fuel diversification.

More specifically, the findings of the study concluded that:

  • Lignite coal mining, the manufacture of activated carbon from lignite coal and coal-fired electric power generation create just over US$7 billion/yr in economic activity in Texas. This activity supports 24 290 jobs that pay US1.8 billion in salaries, wages and benefits. In addition, state and local taxing jurisdictions receive over US$690 million/yr in revenues from coal-related activities.
  • Lignite coal mining in particular is a key generator of economic activity for many of the state’s smaller communities. In total, in-state coal mining creates over US$2.2 billion in statewide economic activity each year, generating US$688 million in salaries, wages, and benefits and providing jobs for over 10 000 Texans. The industry also supports about US$129 million in direct and indirect tax revenues.
  • Electric power generation fuelled by Texas-produced lignite coal and Powder River Basin sub-bituminous coal is a major source of economic activity in Texas. This industry creates US$4.9 billion in statewide economic activity and provides over 13 900 direct and indirect jobs, boosting labour income by US$1.1 billion. Tax revenues for state and local jurisdictions total $552 million each year from coal fueled power generation in Texas.

As expected by TMRA, the study’s analysis clearly demonstrates the economic activity generated by lignite coal and related industries in Texas serve as a catalyst for economic growth and development within the state.

Written by the Texas Mining and Reclamation Association. Edited by .

About the author: The Texas Mining and Reclamation Association is the voice for the Texas mining industry. The association educates the public, regulators and policymakers on the value of mining to the state’s economy and advocates on issues, including environmental regulation, legislation and public perception.

Read the article online at: https://www.worldcoal.com/special-reports/05022015/texas-other-black-gold-coal1852/


 

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