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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 worlds 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 worlds 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): Chinas 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 worlds 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 nations 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 PORTERS 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


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