Industry Analysis & Industry Trends
The Coal Mining industry has been volatile over the five years to 2016. The prices of thermal and metallurgical coal surged early in the five-year period, peaking in 2011. Australian coal reentering the global market after flooding in 2011, the emergence of natural gas as a substitute for coal in electricity generation, a slowing Chinese economy and mild winters in the United States that reduced demand for thermal coal all contributed to price volatility. Consequently, coal stockpiles have remained high around the globe. Coal prices are expected to grow slightly in the five years to 2021, as slowing economic growth in major global markets (e.g. China) places downward pressure on product prices... 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 570.0 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