Industry Analysis & Industry Trends
Coal miners have experienced only slight declines over the past five years. Strong demand from steel production abroad and moderate increases in electricity demand have pushed coal prices up, boosting industry performance. Over the next five years, the industry is expected to perform steadily; however, while coal prices will increase over the period, economic growth in emerging economies (e.g. China) is expected to slow, hampering industry revenue somewhat... 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