China encourages industry M&As to optimize coal mining operations
San Francisco, CA (PRWEB) April 17, 2013
Total revenue of Coal Mining industry in China is estimated at $551.0 billion in 2013, representing annualized growth of 17.1% since 2008. Revenue drivers over this period include rising coal prices and rapidly growing demand for coal for power generation, says IBISWorld.
The development of coal mines in China is under the control of the state. In addition, the construction of dedicated coal transportation railway lines is controlled by the state, which limits and controls competition, says IBISWorld.
The industry is characterized by a large number of small enterprises, which contributes to its low market share concentration level. The top four enterprises, Shenhua Group, Henan Coal and Chemical Group, Shanxi Coking Coal Group, and Zhong Ping Energy Chemical Group, are expected to account for about 29.0% of total industry revenue in 2013.
The Coal Mining industry in China experienced extensive restructuring over the past five years, which led to many mergers, acquisitions and exits. The Chinese government even offered smaller companies incentives to leave the industry due to environmental and safety concerns. Due to strengthening regulations on product quality, worker safety and environmental protections, along with competition from large mining firms, there will be fewer small players in this industry, resulting in a higher level of industry concentration in future years. As more industry assistance and support is provided to large-scale enterprises,the industry will be able to optimize resources for distribution and reduce waste and production costs.
For more information, visit IBISWorld’s Coal Mining in China industry report page.
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IBISWorld Industry Report Key Topics
The Coal Mining industry in China mines bituminous coal and anthracite coal (both are types of black coal). This includes underground mining and surface mining. Some mining enterprises also have facilities to wash and process raw coal to yield qualified products for different downstream industries.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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