|Last Quarterly Update:||9/23/2013|
|SIC Codes:||1221, 1222|
|NAICS Codes:||2121, 213113|
|Industry Overview||Trends & Challenges||Industry Forecast|
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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).
Globally, the coal mining industry produces about 7.7 billion short tons of coal annually, accounting for about 30 percent of total energy consumption. The largest coal producers are China, the US, India, and Australia. About 75 percent of the increase in world coal production between 2010 and 2035 will come from China, according to the US Energy Information Administration.
The US coal mining industry includes about 650 mining companies and about 250 exploration and mining support companies with combined annual revenue of about $39 billion. About 1 billion short tons of coal are produced annually in the US, according to the Energy Information Administration.
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 ...
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