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 Locations Chapter

    The importance of various regions in coal production largely reflects the availability of coal resources. However, coal quality, accessibility and the cost of transport to market all play an additional role in determining the timing of resource development. Typically, the most attractive, meaning the most high-quality, easily accessible and cost-effective, coal resources are developed first. There is also a large difference between the regional concentration of industry establishments and each location's share of total industry production. Production distribution does not correlate with establishment distribution because coal resources and output vary drastically from mine to mine.ScotlandScotland accounts for 42.9% of industry establishments. Thi...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 can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

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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

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