Wednesday, December 19, 2012
John Baugues, Jr. and Coalmine Development Fundamentals: The Right Location
John Baugues, Jr. and Coalmine Development Fundamentals: The Right Location With global energy demand on the rise, John Baugues Jr's coalmine investments illustrate the benefits of seeing - and filling - a critical need for natural resources. Coal fuels over 40 percent of worldwide energy generation, though it also finds significant use in steel production, cement manufacturing, and as a liquid fuel. With large proven coal reserves, the United States is in a favorable position to supply much of the demand - and smart coalmine developers like John Baugues and others are investing now to be a part of that supply chain. John Baugues Jr's initial investments in the Bull Mountain mine in Montana effectively kickstarted a trend to pursue untapped coal reserves in the "Treasure State" after little new mining activity in the state for several decades. Similarly, John Baugues Jr's development of a new coal mine in West Kentucky underscored the region's significant resources and their ability to meet rising demand for fuel used in pollution-cutting utilities. Domestic energy needs rely heavily on domestic coal production, and John Baugues Jr's shows that investing in local coal reserves to meet those needs is a winning strategy. Not only will John Baugues Jr's projects supply a needed resource, but they'll also generate new jobs and increased tax revenues for local communities. The lesson: with domestic and international coal demand on the rise, the time to invest in coal development is now.