Coal Mining Industry Profile

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 Arch Resources and Peabody Energy (both based in the US), as well as Anglo American (UK), BHP Billiton (dually headquartered in the UK and Australia), Coal India Limited (CIL), and ShenHua Group and Yankuang Energy (both in China).

The global production for coal mining companies will rise by about 9 billion tons through 2025. Increases in coal consumption are expected to be driven primarily by demand in countries such as China, according to the International Energy Agency (IEA). The largest coal-producing nations in 2023 are China, India, Indonesia, the US, and Australia, according to Enerdata's Yearbook.

The US coal mining industry includes about 850 mining and support establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $28 billion. About 450 million tons of coal are produced in the US in 2023, according to the International Energy Agency.

COMPETITIVE LANDSCAPE

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 fragmented: the top four companies account for ...