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Coal mining industry covers the activities of coal extraction from mines, trading, and the supply of coal to related industries to use this fuel. The coal mine along with its associated structures are conjointly known as a colliery. Government agencies and multinational companies take the initiative to build coal mines as they are capital-intensive.
Some crucial factors related to coal mining industry
From the thirteenth century onwards to the Industrial Revolution and till date, coal has played a vital role in progress. Today, coal is among the most sought after energy sources for several countries.
The process of underground coal mining began in the thirteenth century. By that time, all superficial coal seams had almost been exhausted or were hardly reachable. Since then, a large number of countries have conducted various mining methods for coal production. History reveals that the Industrial Revolution in the late eighteenth century was accompanied by huge demand for coal, which was identified as a fuel with unmatched energy production capabilities. Even after the Industrial Revolution, coal continued to be used for energy production till alternative energy sources emerged.
The emergence of alternative energy sources marked the decline of the global demand for coal. Researchers developed new techniques to harness energy from both natural and renewable resources. Alternatives, like petroleum, bio diesel, gas and oil, overpowered the use of coal as a fuel. Currently, coal is hardly used except in certain countries such as China. The downturn of the coal mining industry received a new lease on life when fuel and oil prices started exhibiting high and continuous volatility.
Following the surge in oil prices, countries like the US, China and India began reviving coal mining projects. In fact, coal is the state of Kentucky’s official state mineral and the official state rock of Utah. Coal reserves are estimated to be spread across nearly hundred countries. The proven coal reserves are expected to last for more than two hundred years based on the current rates of coal production. A study conducted in 2006 reveals that China holds a top slot in the production of coal, with annual production of up to 2482 metric tones, while the US, India and Australia follow with 990, 427, 309 metric tones, respectively.
Countries like the UK, Japan and South Korea have also started undertaking initiatives to revive the coal mining sector and to enhance coal production by setting up domestic industries. In the years to come, coal may emerge as the most compelling alternative to thwart the threat of volatile oil and commodity prices.