James River Coal Competition
Now Viewing James River Coal's competition in: Coal Mining (primary)
Recent Developments
Coal Prices to Remain High in Global Market Shift - A Citigroup analyst recently dismissed a sell-off in coal stocks, citing evolving coal trends. The analyst claims that regional coal markets are banding together to create a global market for coal. The shift to a demand-driven global coal market is being caused by strong coal demand in emerging countries such as China, India, Russia, and Brazil; limitations for coal transport; mine shortfalls; and dwindling coal stockpiles.
Court Stalls Coal-Fired Plant Construction - A Georgia court recently halted construction of a 1,200 megawatt coal-fired power plant because its builders didn't plan for limiting greenhouse emissions. The decision was the first time greenhouse gas emissions were used to stop a coal-fired power plant development. Dynegy, the energy company proposing the plant, is expected to appeal. The court ruling could affect plans for new plants in other states including Indiana, South Dakota, and Wisconsin.
Mine Operators Resist Federal Safety Agency - The federal Mine Safety and Health Administration (MSHA) recently said that more than 200 mining operations systematically appeal 100 percent of all MSHA citations. MSHA officials suggest that blanket resistance to regulators, regardless of a given citation's merit, shows a lack of commitment to mine safety by mine operators. The MSHA says that the systematic pattern of appealing citations is creating a backlog within the agency.
Competitive Landscape
Demand comes mainly from generators of electricity. Profitability depends on efficient operations, as the product is a commodity sold on the basis of price. Small companies can compete if they hold long-term contracts or if they supply local customers. Big companies have large economies of scale in production and distribution. The industry is capital-intensive and highly automated: average annual revenue per employee is almost $300,000.
Coal Mining Industry Forecast
from Hoover's/D&B subsidiary First Research
The output of US coal mining is forecast to grow at an annual compounded rate of 1.6 percent between 2007 and 2012.
Coal Mining Growth Low
First Research forecasts are based on INFORUM forecasts that are licensed from the Interindustry Economic Research Fund, Inc. (IERF) in College Park, MD. INFORUM's "interindustry-macro" approach to modeling the economy captures the links between industries and the aggregate economy.
First Research Opportunity Rating
The First Research Opportunity Rating is First Research's estimate of industry performance vs. industry risk over the next 12 to 24 months.
- Demand: Utilities want cleaner fuels
- Need efficient use of expensive equipment
- Risk: Slower economy cuts electricity use
Industries Where James River Coal Competes
- Metals & Mining
- Coal Mining & Processing (primary)
