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 - Starting a New Business Chapter
There are substantial barriers to entry into the Coal Mining industry, including the capital expenditure necessary to undertake exploration programs and fund mine development. Furthermore, obtaining the rights to operate at a mine that a competitor owns can also be difficult and require large royalties. The two largest players control most of the high-production mines in Canada, which further complicates conditions for new entrants, especially if they are small. Therefore, potential industry entrants are left to compete by operating at lower-grade mines, which have higher operating costs.
Another barrier to entry is the difficulty in acquiring permits and leases... purchase to read more