Industry Analysis & Industry Trends
Coal continues to play a vital role in global electricity generation markets and, consequently, the industry has recovered strongly from the global recession. While the Global Coal Mining industry's performance suffered during the recession, it rebounded strongly in 2010 and 2011. Despite environmental concerns about coal's high carbon content, countries still heavily rely on coal to provide electricity to their populations. In the coming years, the worldwide output of coal is expected to continue expanding in response to growing demand from electricity generators and steel producers... read more
Starting a New Business
There are substantial barriers to entry into the Global Coal Mining industry. Prospective entrants require large amounts of capital (usually several hundred million dollars) to develop or purchase a new mine. Coal mine development and operation also requires access to skilled labor, including geologists, mining engineers and experienced mine workers.
Other barriers to entry include regulatory processes. Typically, companies must obtain a permit or license to undertake exploration and, if the mine proceeds, separate permits or licenses to undertake mining. The process generally involves gaining environmental approval for the project. Companies must also have the expertise to negotiate favorable contracts with customers... read more