Coal Mining Industry Overview

Excerpt from Coal Mining Report

Companies in this industry develop coal mine sites; extract coal from surface and underground mines; prepare coal for use; and provide support activities for coal mining. Major companies include Alpha Natural Resources, Arch Coal, and Peabody Energy (all based in the US), as well as Anglo American (UK); BHP Billiton (dually headquartered in the UK and Australia); Coal India; ShenHua Group and Yankuang Group (China); and Xstrata (Switzerland).

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 US industry is concentrated: the top four companies account for about 65 percent of sales.

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.