By Jim Ross
High prices in coal used to make steel is the driving force behind recent company mergers and acquisitions.
The market for metallurgical coal used to make steel may not be as big as the market for coal used in power plants, but it's where the money is going.
Interest in metallurgical, or met, coal, which has seen significant price increases in recent months, was the driving force behind three large mergers in the American coal industry in recent months, including this week's announcement by St. Louis-based Arch Coal that is buying Scott Depot-based International Coal Group,or ICG. But West Virginia has seen renewed interest in met coal for several years as foreign steel producers have brought met coal reserves and mines.
"We have had a lot of inquiries from foreign buyers - China, Europe, India - that are wanting to buy producers of coal," said Bill Raney, president of the West Virginia Coal Company.
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