Industry Analysis & Industry Trends
The Coal Mining industry has lost steam over the past five years. This is because the emergence of natural gas-generated electricity has increased competition for the industry. Emerging market demand for metallurgical coal has created need for this export, as developing countries are extensively building infrastructure and demanding steel-making coals at increasing rates. Additionally, coal stockpiles have remained high around the globe, depressing prices and causing industry revenue to contract. In the five years to 2019, slower growth in emerging economies will hurt demand for US metallurgical coal and cause prices to stagnate. Furthermore, natural gas will continue to erode coal demand, as the appetite for alternative sources of electricity expands globally... purchase to read more
Industry Report - Starting a New Business Chapter
There are substantial barriers to entry into the Coal Mining industry. A large amount of capital is required to develop a new mine, usually several hundred million dollars. Other barriers to entry include the lengthy approval process (such as environmental approval and licenses to explore and mine) and the ability to secure favorable contracts with end users.
The Bureau of Land Management (BLM), under the US Department of the Interior, presents additional barriers to entry. The BLM is responsible for coal leasing on about 570 million acres, where the federal government owns the coal mineral estate. The land surface could be controlled by the BLM, the US Forest Service, private land owners, state land owners or other federal agencies... purchase to read more