Coal Mining Industry Overview

Excerpt from Coal Mining Report

The US coal mining industry includes about 650 mining companies and about 250 exploration and mining support companies with combined annual revenue of about $39 billion. Major US companies include Alpha Natural Resources, Arch Coal, CONSOL Energy, and Peabody Energy. The US industry is concentrated: the top four companies account for about half of sales. About 1 billion short tons of coal are produced annually in the US, according to the Energy Information Administration.

Competitive Landscape

Demand comes mainly from generators of electricity. Profitability depends on efficient operations, as coal is a commodity sold on the basis of price. Big companies have significant economies of scale in production and distribution. Small companies can compete if they hold long-term contracts or if they supply local customers. The coal mining industry is capital-intensive: average annual revenue per employee is about $440,000.

Products, Operations & Technology

The industry's primary products, bituminous coal, subbituminous coal, and lignite, account for about 95 percent of revenue. Support services account for about 5 percent of industry revenue.