Industry Analysis & Industry Trends
Coal mining is a pillar of the Canadian economy, as the industry not only adds significantly to the national GDP, but it also drives the economic wellbeing of many regions and communities. As the domestic economy recovers from recession, demand for electricity has driven the country's appetite for coal-fuelled utilities. However, the growing preference for renewable and clean sources of energy threatens the industry. In the five years to 2021, the Coal Mining industry's performance is forecast to struggle due to the projected economic slowdown in BRIC countries. Although demand for steel and, therefore, metallurgical coal, from these countries is expected to remain high, this rate is unlikely to rival prerecessionary levels... purchase to read more
Industry Report - Industry Key Buyers Chapter
Industry concentration has increased substantially over the past five years as coal mine operators acquired additional reserves to meet surging export demand. Strong demand from markets in Asia has underpinned this growth; as a result, major players have looked to increase their holdings of premium-priced metallurgical coal, which is used to produce steel.
Although there are considerable economies of scale in coal mining, there are also substantial numbers of small and medium-sized operators. Typically, these companies mine deposits that are smaller than those sought by the larger mining companies. Over the next five years, IBISWorld anticipates consolidation will continue as coal prices remain relatively weak in comparison to the previous decade... purchase to read more