Walter Energy

Last updated
Walter Energy, Inc.
TypePublic
OTC Pink: WLTGQ
Industry Coal Mining
Energy
Founded Tampa, Florida in 1946
Headquarters Galleria Tower
Birmingham, Alabama, United States
Key people
Walt Scheller, Chief Executive Officer
Products Coal
Coke (fuel)
Natural Gas
Anthracite
RevenueIncrease2.svg$2.7 billion USD (2011)
Number of employees
4,400 (2011, including contractors)
Website www.walterenergy.com

Walter Energy, Inc. was a publicly traded "pure play" metallurgical coal producer for the global steel industry. The company also produced natural gas, steam coal and industrial coal, anthracite, metallurgical coke, and coal bed methane gas. Corporate and U.S. headquarters were located in Birmingham, Alabama, and its Canadian & UK headquarters in Vancouver, British Columbia. Walter Energy filed for bankruptcy in 2015 [1] and its assets were purchased by Warrior Met Coal. [2]

Contents

Divisions

U.S.

The company's U.S. underground mines produced high-quality coal from Alabama's Blue Creek seam. Jim Walter Resources, the Company's U.S. underground coal mining unit, has grown from a small producer of less than 1 million tons of coal per year, produced solely for use in its sister company's coke ovens, into one of the 25 largest coal metallurgical coal producers in the United States, with 2010 metallurgical coal sales of approximately 6.0 million metric tons and plans to expand sales to 8.5 million metric tons of metallurgical coal by 2013. Its metallurgical coal mines, No. 4 and No. 7, are two of the deepest vertical shaft coal mines in North America at nearly 2,000 feet deep. The mines also produce a significant quantity of coal bed methane gas. Jim Walter Resources also operates the North River steam coal mine.

The U.S. Division operates the Maple Coal and Gauley Eagle mines in West Virginia, and mines in South Wales in Britain. These mines were formerly owned by Western Coal Corp.

Walter Minerals, an Alabama-based surface coal producer with a capacity of nearly 1.5 million tons, which produces coal for the Alabama steam and industrial coal markets, also is included in the Company's U.S. operations.

Walter Coke, the company's fuel coke producer, manufactures coke for use in blast furnaces and foundries. The Birmingham, Alabama company was formerly known as Sloss Industries.

Canada and U.K.

Walter Energy's Canadian and European operations consist of three mines in British Columbia, Canada and a project in Wales at Aberpergwm, UK.

History

The company was formerly known as Walter Industries, Inc. and changed its name to Walter Energy in April 2009. The predecessor company was founded by Tampa entrepreneur the late James W. Walter Sr. in 1946 [3] as a builder of affordable, stick-built homes across the southeast. It spun off Mueller Water Products in 2006, closed Jim Walter Homes in 2009, also spinning off Walter Investment Management Corporation in 2009. [4]

2001 mine disaster

At approximately 5:15 p.m. on September 23, 2001, at the Jim Walter Resources No. 5 coal mine in Brookwood, 40 miles southwest of Birmingham, a cave-in caused a release of methane gas that sparked two major explosions, killing thirteen miners. [5]

Related Research Articles

Coal Combustible sedimentary rock composed primarily of carbon

Coal is a combustible black or brownish-black sedimentary rock, formed as rock strata called coal seams. Coal is mostly carbon with variable amounts of other elements, chiefly hydrogen, sulfur, oxygen, and nitrogen. Coal is formed when dead plant matter decays into peat and is converted into coal by the heat and pressure of deep burial over millions of years. Vast deposits of coal originate in former wetlands—called coal forests—that covered much of the Earth's tropical land areas during the late Carboniferous (Pennsylvanian) and Permian times. However, many significant coal deposits are younger than this and originate from the Mesozoic and Cenozoic eras.

Anthracite A hard, compact variety of coal that has a submetallic luster

Anthracite, also known as hard coal, is a hard, compact variety of coal that has a submetallic luster. It has the highest carbon content, the fewest impurities, and the highest energy density of all types of coal and is the highest ranking of coals.

Coal mining Process of getting coal out of the ground

Coal mining is the process of extracting coal from the ground. Coal is valued for its energy content and since the 1880s has been widely used to generate electricity. Steel and cement industries use coal as a fuel for extraction of iron from iron ore and for cement production. In the United Kingdom and South Africa, a coal mine and its structures are a colliery, a coal mine is called a 'pit', and the above-ground structures are a 'pit head'. In Australia, "colliery" generally refers to an underground coal mine.

Coal gas is a flammable gaseous fuel made from coal and supplied to the user via a piped distribution system. It is produced when coal is heated strongly in the absence of air. Town gas is a more general term referring to manufactured gaseous fuels produced for sale to consumers and municipalities.

Coalbed methane Form of natural gas extracted from coal beds

Coalbed methane, coalbed gas, coal seam gas (CSG), or coal-mine methane (CMM) is a form of natural gas extracted from coal beds. In recent decades it has become an important source of energy in United States, Canada, Australia, and other countries.

Mining in Japan

Mining in Japan is minimal because Japan does not possess many on-shore mineral resources. Many of the on-shore minerals have already been mined to the point that it has become less expensive to import minerals. There are small deposits of coal, oil, iron and minerals in the Japanese archipelago. Japan is scarce in critical natural resources and has been heavily dependent on imported energy and raw materials. There are major deep sea mineral resources in the seabed of Japan. This is not mined yet due to technological obstacles for deep sea mining.

Consol Energy Inc. is an American energy company with interests in coal headquartered in the suburb of Cecil Township, in the Southpointe complex, just outside Pittsburgh, Pennsylvania. In 2017, Consol formed two separate entities: CNX Resources Corporation and CONSOL Energy Inc. While CNX Resources Corp. focuses on natural gas, spin-off Consol Mining Corporation, now Consol Energy Inc. focuses on coal. In 2010, Consol was the leading producer of high-BTU bituminous coal in the United States and the U.S.'s largest underground coal mining company. The company employs more than 1,600 people.

Mechel is one of Russia's leading mining and metals companies, comprising producers of coal, iron ore in concentrate, steel, rolled steel products. Headquartered in Moscow, sells its products in Russia and overseas, and is formally known as Public Joint Stock Company Mechel.

Coal mining regions are significant resource extraction industries in many parts of the world. They provide a large amount of the fossil fuel energy in the world economy.

Coal in China National coal consumption

China is the largest producer and consumer of coal in the world and is the largest user of coal-derived electricity. The share of coal in the energy mix declined during the 2010s, falling from 80% in 2010 to 57.7% in 2019.

The mineral industry of Russia is one of the world's leading mineral industries and accounts for a large percentage of the Commonwealth of Independent States' production of a range of mineral products, including metals, industrial minerals, and mineral fuels. In 2005, Russia ranked among the leading world producers or was a significant producer of a vast range of mineral commodities, including aluminum, arsenic, cement, copper, magnesium compounds and metals, nitrogen, palladium, silicon, nickel and vanadium.

The mineral industry of Mozambique plays a significant role in the world's production of aluminium, beryllium, and tantalum. In 2006, Mozambique's share of the world's tantalum mine output amounted to 6%; beryllium, 5%; and aluminium, 2%. Other domestically significant mineral processing operations included cement and natural gas.

Coal in India has been mined since 1774 and is now the second fastest mined in the world, producing 716 million metric tons in 2018. In 2017, India had 315.14 billion metric tons of coal. The estimated total reserves of lignite coal that month was 44.70 billion metric tons. Due to high demand and poor average quality, India imports coking coal to meet the requirements of its steel plants. India's coal imports have risen from 49.8 million metric tons in 2007–08 to 191 million metric tons in 2016–17. India's coal exports rose from 1.63 million metric tons in 2007–08 to 2.44 million metric tons in 2012–13, but subsequently declined to 1.77 million metric tons in 2016–17. Dhanbad city is the largest coal producing city and is called the Coal Capital of India. State-owned Coal India had a monopoly on coal mining between its nationalisation in 1973 and 2018.

Coal mining in the United States

Coal mining in the United States is an industry in transition. Production in 2017 was down 33% from the peak production of 1,162.7 million short tons in 2006. Employment of 50,000 coal miners is down from a peak of 883,000 in 1923. Generation of electricity is the largest user of coal, being used to produce 50% of electric power in 2005 and 27% in 2018. The U.S. is a net exporter of coal. U.S. coal exports, for which Europe is the largest customer, peaked in 2012. In 2015, the U.S. exported 7.0 percent of mined coal.

Jizhong Energy Group Company Limited is a state owned coal company located in Hebei, China. It is among the seven largest Chinese coal companies. In 2011, the company mined slightly over 100 million metric tonnes of coal in 2011, of which about 26 million metric tonnes of metallurgical coal. This makes it China's second-largest metallurgical coal miner after Shanxi Coking Coal Group.

Alpha Natural Resources is a large American producer of metallurgical coal for the industrial production of steel and iron and low-sulfur thermal coal to fuel steam boilers for the production of electrical power. In November, 2018 the company was acquired by Contura Energy. The company also provides industry services relating to equipment repairs, road construction and logistics, with domestic operations and coal reserves within the states of Virginia, West Virginia, Kentucky, Wyoming, Utah, Illinois, Tennessee, and Pennsylvania. Alpha Natural Resources does not produce all of the coal it sells; much of the coal sold by Alpha Natural Resources is purchased from independent mining operations and then resold in the worldwide market.

Some of the more notable coal companies in Australia are the following:

Coalbed methane in the United States

The 2017 production of coalbed methane in the United States was 0.98 trillion cubic feet (TCF), 3.6 percent of all US dry gas production that year. The 2017 production was down from the peak of 1.97 TCF in 2008. Most coalbed methane production came from the Rocky Mountain states of Colorado, Wyoming, and New Mexico.

Iron mining in the United States Overview of iron mining in the United States

Iron mining in the United States produced 48 million metric tons of iron ore in 2019. Iron ore was the third-highest-value metal mined in the United States, after gold and copper. Iron ore was mined from nine active mines and three reclamation operations in Michigan, Minnesota, and Utah. Most of the iron ore was mined in northern Minnesota's Mesabi Range. Net exports were 3.9 million tons. US iron ore made up 2.5 percent of the total mined worldwide in 2015. Employment as of 2014 was 5,750 in iron mines and iron ore treatment plants.

Contura Energy

Contura Energy is a leading coal supplier with underground and surface coal mining complexes across Northern and Central Appalachia. Contura owns large coal basins in Pennsylvania, Virginia and West Virginia which supply both metallurgical coal to produce steel and thermal coal to generate power.

References

  1. "Coal miner Walter Energy files for bankruptcy". Reuters. 2015-07-15. Retrieved 2017-12-28.
  2. Poe, Kelly. "Warrior Met Coal, the former Walter Energy, sets IPO range". AL.com. Retrieved 2017-12-28.
  3. "Funding Universe (undated): WALTER INDUSTRIES, INC . Company History" . Retrieved 2009-08-11.
  4. "Jim Walter Homes closes offices, prepares to shut down". bizjournals . 6 January 2009. Retrieved 16 June 2021.
  5. "Death Underground". Archived from the original on 2014-10-11.