Companies In The Coal Mining Market Are Investing In Expansion As Part Of Their Business Strategy
Business strategies being adopted by major companies in the global coal mining market include entering new domestic and international markets by collaborating, or expanding through strategic partnership and joint ventures to increase their market share. The global coal mining market is highly fragmented. The top five competitors in the market made up about 12% of the total market share in 2017. China Shenhua Energy Company Limited was the largest competitor in the coal mining market in 2017 with a 4% market share. It is a coal-based integrated energy company. The company is engaged in coal mining, power generation, transportation, and coal based chemical manufacturing. It aims at entering new domestic and international markets. As a part of its expansion strategy, the company has started selling its coal in south China and South Korea. The company is also trying to expand the sale of seaborne coals from the newly explored Beijing-Tianjin-Hebei region market.
Coal India Limited was the second largest company in the coal mining market in 2017 with a 3.3% share of the market. Coal India contributes to a major amount of the coal production in India. The company has 8 fully owned Indian subsidiaries throughout India and one subsidiary in Mozambique called Coal India Africana Limitada (CIAL). Coal India Limited is engaged in the production and sale of coal. The company has 82 mining sites over 8 states of India and has 430 mines of which 227 are underground, 176 opencasts and 30 mixed mines. The company’s major customers are the power and steel industry. Coal India’s products range from coking coal, semi coking coal, Non-coking coal, washed and beneficiated coal and its by-products middlings and rejects. It has developed a smokeless and environmentally friendly coal called CIL Coke which is used to make coke fines. As its business strategy, Coal India Limited is collaborating with the state governments and Railways to link the coals fields with rail lines to speed up coal evacuation.
The global coal mining market is expected to reach a value of $503.3 billion by 2021. A major driving factor of the market is the growth of emerging markets in countries such as China and India. This can be attributed to the increasing demand for electricity, owing to increasing industrial growth and rising steel consumption in these countries. Emerging markets are expected to continue to see generally higher levels of growth than developed markets during this period. Coal-fired power generation in India is expected to increase at 4% per year through 2022.