COAL INDUSTRY




            BY:
        KAMLESH YADAV (22)

       DIGAR DEV PANDEY (17)
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.
Production Of Coal By Country (Million Tonnes)
          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
Major Exporters      Mt      Major Importers   Mt

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

USA - 27.1%        Poland - 93%

Russia - 17.3%     South Africa - 93%

China - 12.6%      Australia - 93%

India - 10.2%      China - 78%

Australia - 8.6%   Israel - 71%
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.
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
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
% SHARE OF COMMERCIAL
PRIMARY ENERGY RESOURCES - INDIA

          HYDRO   NUCLEAR    NATURAL GAS   OIL   COAL
                              2%
                            2% 9%




            51%
                                     36%
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.
COAL PRODUCTION OF CIL
440
430                                         433

420                 415
                                   423
410
400
390                400
                                                  Mt
380
370
          372
360
350
340
      2007-08 2008-09 2009-10 2010-11 2011-12


                    Year
NET PROFIT OF CIL
                16000

                14000                                                    14788
                12000

                10000                    9262               10867
                 8000
Rs. In Crores                                                                 Rs in Crores
                 6000    5243

                 4000

                 2000
                                        2079
                    0
                         2007-08   2008-09     2009-10   2010-11    2011-12


                                             Year
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.
INDUSTRY ANALYSIS AND TRENDS
PORTER’S FIVE FORCE MODEL

                      2. Threats
                         from
                      Potential
                       Entrants


     5. Bargaining     1. Rivalry     4. Bargaining
     power of the       among           power of
        supplier     existing firms       buyers



                     3. The threat
                     of substitute
SWOT ANALYSIS
         STRENGTHS                           WEAKNESS
                                   Poor infrastructure facilities
Labors easily available           Low innovation capabilities
Low customs duty on capital       Labor force is highly un-skilled
equipment                          and inexperienced
tax holiday


      OPPORTUNITIES        SWOT                 THREATS

                                      Foreign Investment
Setting up manufacturing units.      Stricter environment rules
Export Potential                     restricting coal mining activities
                                      High rate of accidents
Coal industry

Coal industry

  • 1.
    COAL INDUSTRY BY: KAMLESH YADAV (22) DIGAR DEV PANDEY (17)
  • 2.
    INTRODUCTION Coal was minedin 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.
    Production Of CoalBy Country (Million Tonnes) 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
  • 4.
    Major Exporters Mt Major Importers Mt Indonesia 309 China 177 Australia 285 Japan 175 Russian Federation 99 Korea 129 United States 85 India 101 Colombia 76 Taiwan 66 South Africa 70 Germany 41 Kazakhstan 34 United Kingdom 32 Canada 24 Turkey 24 Vietnam 23 Italy 23 Mongolia 22 Malaysia 21 Others 14 Others 213 Total 1 041 Total 1 002
  • 5.
    WORLD COAL RESERVESAND CONSUMPTION RESERVES CONSUMPTION USA - 27.1% Poland - 93% Russia - 17.3% South Africa - 93% China - 12.6% Australia - 93% India - 10.2% China - 78% Australia - 8.6% Israel - 71%
  • 6.
    CHINESE COAL INDUSTRY TheChinese 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 TheUS 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: TheIndian 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 OFCOMMERCIAL PRIMARY ENERGY RESOURCES - INDIA HYDRO NUCLEAR NATURAL GAS OIL COAL 2% 2% 9% 51% 36%
  • 10.
    COAL INDIA LIMITED CoalIndia 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 OFCIL 440 430 433 420 415 423 410 400 390 400 Mt 380 370 372 360 350 340 2007-08 2008-09 2009-10 2010-11 2011-12 Year
  • 12.
    NET PROFIT OFCIL 16000 14000 14788 12000 10000 9262 10867 8000 Rs. In Crores Rs in Crores 6000 5243 4000 2000 2079 0 2007-08 2008-09 2009-10 2010-11 2011-12 Year
  • 13.
    SUBSIDIARY COMPANIES OFCIL 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 ANDTRENDS PORTER’S FIVE FORCE MODEL 2. Threats from Potential Entrants 5. Bargaining 1. Rivalry 4. Bargaining power of the among power of supplier existing firms buyers 3. The threat of substitute
  • 15.
    SWOT ANALYSIS STRENGTHS WEAKNESS Poor infrastructure facilities Labors easily available Low innovation capabilities Low customs duty on capital Labor force is highly un-skilled equipment and inexperienced tax holiday OPPORTUNITIES SWOT THREATS Foreign Investment Setting up manufacturing units. Stricter environment rules Export Potential restricting coal mining activities High rate of accidents