Continued collapse: Reductions in demand from electricity generators cause revenue to fall

In both European and global terms, the United Kingdom is a minor producer of coal. Production has fallen sharply since the early 1970s, plunging as mines were closed in the mid-1980s. Coal was responsible for over two-thirds of electricity generation in the 1990s, but it is now expected to only generate less than 5% of the United Kingdom's electricity. Government efforts to phase out the use of coal combined with the relatively low world price of steaming coal is expected to result in industry revenue falling at a compound annual rate of 19.6% over the five years through 2018-19. During the current year, revenue is anticipated to drop by 11% to £282.7 more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24

Industry Threats & Opportunities

  • A decrease in the use of coal as a power source has severely dented demand and revenue
  • As demand from electricity generators continues to decline, operators are shutting down operations
  • Most, if not all, of the remaining UK coal-fired power stations are expected to close by the end of the period
  • Industry Report - Industry SWOT Analysis Chapter

    The Hard Coal Mining industry has been in decline for decades and the volume of production has been falling sharply. Domestic demand for coal has fallen over recent years, as the industry's major market, electricity generators, has increasingly turned to alternative fuel sources. The United Kingdom generated electricity for 72 hours without the use of coal as part of its energy mix through 24 April 2018. This is expected to become an increasingly frequent occurrence, as demand for coal continues to fall. The number of firms engaged in coal mining has plunged as a result of industry rationalisation and employment numbers have fallen consistently over the past decade...purchase to read more.

    Additional Insights for the Hard Coal Mining Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Hard Coal Mining Industry are

  • Ability to accommodate environmental requirements
  • Access to high quality inputs
  • Access to highly skilled workforce
  • IBISWorld analysts also discuss how external factors such as Public concern over environmental issues and Total use of renewable and waste energy sources in the Hard Coal Mining industry impact industry performance..

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    What's in this report

    What is the Hard Coal Mining Industry?

    Firms in this industry mine black coal from underground or opencast mines. Mining includes the extraction of coal and the associated activities, such as washing, grading, pulverising and compressing, which are necessary to prepare the coal for sale. The industry does not include support activities, test drilling or the manufacture of hard coal briquettes.

    Industry Products
  • Opencast coal mining
  • Opencast coal mining
  • Opencast coal mining
  • Industry Activities
  • Underground hard coal mining
  • Opencast hard coal mining
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Public concern over environmental issues
  • Total use of renewable and waste energy sources
  • World price of steaming coal
  • Demand from electricity production
  • Real effective exchange rate

  • Current Performance
  • Government policy
  • Coal closures
  • Down the pits
  • Counting coal losses
  • Chart: Revenue Growth

  • Industry Outlook
  • Legislative woes
  • A crack of light
  • Table: Hard Coal Mining Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Hard Coal Mining Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Cement Manufacturing
  • Iron & Steel Manufacturing
  • Electricity Production

  • Key Selling Industries
  • Freight Rail Transport
  • Fuel Wholesaling
  • Support Activities for Other Mining and Quarrying

  • Products & Services
  • Opencast coal mining
  • Opencast coal mining
  • Opencast coal mining
  • Chart: Hard Coal Mining Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Electricity generators
  • Other
  • Cement producers
  • Chart: Major Market Segmentation for the Hard Coal Mining Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitWagesPurchasesDepreciationOther costs
  • Chart: Cost Structure Benchmarking – Sector vs Hard Coal Mining

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Hard Coal Mining Industry

  • Industry Globalization
    The Banks Group Ltd, Celtic Energy Limited, Hargreaves Services plc,
  • Table: The Banks Group Ltd - financial performance
  • Table: Celtic Energy Limited - financial performance
  • Table: Hargreaves Services plc - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Hard Coal Mining Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Hard Coal Mining Industry
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Exports (2010-2024)
  • Imports (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Coking Coal
  • Coal with a high carbon content that is used to produce coke for steel making.
  • Hard Coal
  • The type of coal with the highest level of fixed carbon and the least volatile material. This makes it the most efficient at producing heat.
  • Opencast Mining
  • A type of surface excavation in the form of an inverted cone; the shape of the mine opening varies with the shape of the mineral deposit.
  • Steaming Coal
  • Coal with a high energy content, usually burned as fuel in power stations.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Hard Coal Mining market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

    IBISWorld industry market research reports enable you to:
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    This report on Hard Coal Mining:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Hard Coal Mining market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Hard Coal Mining, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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