Process of Selling My Coal

[turkeymann]

On average, how long of a process is it from start to finish if I decide to sell the coal on my land? How long until they get started mining? How long after they get started?  When would I get paid?  Thanks

[John]

May 23, 2015 11:49:05 GMT -5 turkeymann said:

On average, how long of a process is it from start to finish if I decide to sell the coal on my land? How long until they get started mining? How long after they get started?  When would I get paid?  Thanks

Do you own the mineral rights to the coal? On my deed I own all minerals down to the centre of the earth.

[turkeymann]

Yes, I own half of the mineral rights.

[John]

I'll presume you have the mineral rights to the coal, but at the moment, you won't get top dollar for coal, there's a world glut, and prices per ton are at an all time low. The big miners are putting coal mines into "Care and Maintenance" as they don't have a market for their product, both metallurgic and steam raising coals.
So chances are, if you're looking at a mining company to recover your coal, you'll probably be waiting a while.

How much coal do you think you have??? Tonnage??? or area??

[turkeymann]

I'm not real sure how much coal there is or the tonnage yet. When you say it will be a while, are you talking several years?

[John]

There are other variables to consider, is the coal high sulphur??? If so, you won't find too many markets for it, the EPA, might stop you mining, the feller in the WH is going all out to kill coal.

Personally, in today's climate, I'd "sit" on it until the market picks up, and probably wait until after the next Presidential election is over. You might consider looking into a local residential sale of coal, say for household use??

[John]

May 23, 2015 12:12:19 GMT -5 turkeymann said:

I'm not real sure how much coal there is or the tonnage yet. When you say it will be a while, are you talking several years?

The amount of coal under your land would have to be large enough for a company to invest in mining, mining coal is an expensive business, machinery for even a modest mine would set a company back over $500,000, not counting developing the seam, TBH, in today's political climate and today's market, I don't think you'll find many mining companies who you could interest in exploiting the coal.

Are there any small mining companies in your state?? I'd give a few of them a call and ask them if they are interested in the coal.

[turkeymann]

May 23, 2015 12:21:40 GMT -5 John said:

May 23, 2015 12:12:19 GMT -5 turkeymann said:

I'm not real sure how much coal there is or the tonnage yet. When you say it will be a while, are you talking several years?

The amount of coal under your land would have to be large enough for a company to invest in mining, mining coal is an expensive business, machinery for even a modest mine would set a company back over $500,000, not counting developing the seam, TBH, in today's political climate and today's market, I don't think you'll find many mining companies who you could interest in exploiting the coal.

Are there any small mining companies in your state?? I'd give a few of them a call and ask them if they are interested in the coal.

The owner of the other half of the mineral rights says there is several million dollars worth of coal there.