1. COAL INDUSTRY
BY:
KAMLESH YADAV (22)
DIGAR DEV PANDEY (17)

2. INTRODUCTION
Coal was mined in America in the early 18th century, and
commercial mining started around 1730 in Midlothian, Virginia.
There were many coalfields, but the oldest were in Newcastle and
Durham, South Wales, Scotland and the Midlands.
Coal is primarily used for the generation of electricity, with much
smaller volumes used for industrial process heat and in steel
production.
Over 40 percent of the world’s electricity is produced from coal.
As such, it is an important fuel source and will remain so for decades
due to its low cost and abundance.

3. Country Mt % of world total
China 3576 45.9
USA 1004 12.9
India 586 7.5
Australia 414 5.3
Indonesia 376 4.8
Russia 334 4.3
South Africa 253 3.3
Germany 189 2.4
Poland 139 1.8
Kazakhstan 117 1.5
Rest of the world 795 10.3
TOTAL 7 783 100
Production Of Coal By Country (Million Tonnes)

4. Major Exporters Mt
Indonesia 309
Australia 285
Russian Federation 99
United States 85
Colombia 76
South Africa 70
Kazakhstan 34
Canada 24
Vietnam 23
Mongolia 22
Others 14
Total 1 041
Major Importers Mt
China 177
Japan 175
Korea 129
India 101
Taiwan 66
Germany 41
United Kingdom 32
Turkey 24
Italy 23
Malaysia 21
Others 213
Total 1 002

5. WORLD COAL RESERVES AND
CONSUMPTION
USA - 27.1%
Russia - 17.3%
China - 12.6%
India - 10.2%
Australia - 8.6%
Poland - 93%
South Africa - 93%
Australia - 93%
China - 78%
Israel - 71%
RESERVES CONSUMPTION

6. CHINESE COAL INDUSTRY
The Chinese coal industry is the world’s largest in terms of production
Its annual production totaled 3576 Mt in 2011 and it imports 177 Mt in 2011.
Apart from energy, coal is used in the chemical and pharmaceutical industries.
Chinese coal industry operated through a network of 6,645 enterprises.
Major Players:
Shenhua Group: With annual production at more than 185 million tons, Shenhua
Group ranks first in the country in terms of production.
China National Coal Group Corp: This is the second largest coal producer, with
an annual coal output of more than 87 million tons.
Datong Coal Mine (Shanxi Province): China’s third-largest coal producer is
government owned. The annual coal output is about 61 million tons.
Yanzhou Coal and China Coal: This commands the fourth position in the Chinese
coal industry, with an annual output of more than 35 million tons.

7. US COAL INDUSTRY
The US coal industry commands the first position in the world in terms of total
reserves.
With an annual output of 1004 million tons in 2011, it ranked second in coal
production. A major portion of this production catered to the domestic consumption.
Coal is the backbone of electricity generation in the U.S. The U.S. relies on coal for
about half of its power generation, compared with about 20% of gas.
Major Players
1 Peabody Energy Corp
2 Rio Tinto Energy America
3 Arch Coal Inc
4 Foundation Coal Corp
5 CONSOL Energy Inc
6 Massey Energy Co
7 NACCO Industries Inc
8 Westmoreland Coal Co

8. INDIA COAL INDUSTRY:
The Indian coal industry is the world’s third largest in terms of production and
fourth largest in terms of reserves. Around 70% of the total production is used for
electricity generation and the remaining by the steel, cement and other heavy
industries.
The first coal mining operation commenced in 1774 in the Raniganj coalfield on the
banks of River Damodar.
Till independence, the Indian coal industry witnessed sporadic phases of growth.
Since the private sector followed unscientific methods, productivity was low. The
Indian government took steps to correct this and improve the working conditions in
the nation’s coal industry. All privately owned coal producing companies were
nationalized under the Coal Mines (Nationalization) Act.
Major Players:
Coal India Limited
Singerani Collieries Company

9. % SHARE OF COMMERCIAL
PRIMARY ENERGY RESOURCES - INDIA
2%
2%
9%
36%
51%
HYDRO NUCLEAR NATURAL GAS OIL COAL

10. COAL INDIA LIMITED
Coal India Limited (CIL) as an organized state owned coal mining corporate came
into being in November 1975.
CIL today is the single largest coal producer in the world with 433 MT per
annum.
Operating through 81 mining areas CIL is an apex body with 7 wholly owned coal
producing subsidiaries and 1 mine planning and Consultancy Company spread over 8
states of India.
CIL also manages 200 other establishments like workshops, hospitals etc. It also
owns 26 technical & management training institutes and 102 Vocational Training
Institutes Centers.
It was granted the Maharatna recognition in April 2011.

11. COAL PRODUCTION OF CIL
340
350
360
370
380
390
400
410
420
430
440
2007-08 2008-09 2009-10 2010-11 2011-12
Mt
400
415
423
433
372
Year

12. NET PROFIT OF CIL
0
2000
4000
6000
8000
10000
12000
14000
16000
2007-08 2008-09 2009-10 2010-11 2011-12
Rs in Crores
2079
9262 10867
14788
5243
Rs. In Crores
Year

13. SUBSIDIARY COMPANIES OF CIL
1. Eastern Coalfields Limited (ECL), Sanctoria, West Bengal
2. Bharat Coking Coal Limited (BCCL), Dhanbad, Jharkhand
3. Central Coalfields Limited (CCL), Ranchi, Jharkhand
4. South Eastern Coalfields Limited (SECL), Bilaspur, Chhattisgarh
5. Western Coalfields Limited (WCL), Nagpur, Maharashtra
6. Northern Coalfields Limited (NCL), Singrauli, Madhya Pradesh
7. Mahanadi Coalfields Limited (MCL), Sambalpur, Orissa
8. Coal India Africana Limitada, Mozambique
9. The consultancy company is Central Mine Planning and Design
Institute Limited (CMPDIL), Ranchi, Jharkhand.

14. INDUSTRY ANALYSIS AND TRENDS
PORTER’S FIVE FORCE MODEL
1. Rivalry
among
existing firms
2. Threats
from
Potential
Entrants
4. Bargaining
power of
buyers
3. The threat
of substitute
5. Bargaining
power of the
supplier

15. SWOT ANALYSIS
SWOT
STRENGTHS
Labors easily available
Low customs duty on capital
equipment
tax holiday
WEAKNESS
Poor infrastructure facilities
Low innovation capabilities
Labor force is highly un-skilled
and inexperienced
OPPORTUNITIES
Setting up manufacturing units.
Export Potential
THREATS
Foreign Investment
Stricter environment rules
restricting coal mining activities
High rate of accidents