Industry Analysis & Industry Trends
The prices of metallurgical and thermal coal have decreased over the past five years, causing declines in industry revenue. Competition from natural gas has also been eating into coal demand. Fortunately, growing electricity consumption will benefit the industry, as more than half of the coal produced in the United States is used to produce electricity. Demand for metallurgical coal from emerging economies will also remain high, boosting revenue from exports... purchase to read more
Industry Report - Industry Investment Chapter
The Coal Mining industry is highly capital intensive, with most of its assets held in the form of land holdings, stocks and equipment. Establishing a new mine or expanding an existing one requires large amounts of capital for mine site development and specialized equipment, including items such as draglines (used to remove overburden at open-cut operations), longwalls (shearers and accompanying hydraulic supports and coal extraction conveyors) and coal washing plants.
Ongoing investment requirements largely depend on coal prices. If coal prices are too low, then an operator might reduce production; it might not be economical to extract coal from the mine at a cost that might surpass the expected market price... purchase to read more