Peabody Energy Corporation (BTU) in St. Louis, Miss., is in the coal mining business, and it owns an interest in 17 active coal mining operations located in the U.S. and Australia. It also markets and brokers coal from other coal producers, as both principal and agent, and trades coal and freight-related contracts. In comparison, American Resources Corporation (AREC) in Fishers, Ind., supplies raw materials to the infrastructure and electrification market. It operates through the ethanol and byproducts and refined coal segments. It focuses on the extraction and processing of metallurgical carbon and reprocessed metal to be recycled.
Because the global economic recovery is expected to remain strong this year, total energy consumption is expected to rise. In addition, the disruption in gas supply due to import bans on the largest exporter, Russia, could lead to a rise in the demand for coal this year. Global electricity consumption rebounded in 2021, exceeding 2019 levels. And according to the International Energy Agency (IEA), worldwide coal demand could climb to an all-time high in 2022, breaking the previous high hit in 2013. Coal demand could rise to an all-time high of 8,031 MT in 2024. Therefore, both BTU and AREC should benefit.
