Australia Coal sector and Its Demand Assignment

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Australia’s Coal sector and its Demand

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Table of Content
Topic Page No.
Introduction ............................................................................. 3
Coal Industry in Australia ...................................................3
Analysis: Supply and demand of Coal ............................... 4
Degree of Market Competitiveness: ....................................5
Market Structure of Coal Sector .........................................6
Conclusion -----------------------------------------------------------7
References ------------------------------------------------------------8

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Introduction:
Coal Industry has been main source revenue for many country’s economic growth, which is
one of the main stay of export earnings for many a countries. Human being started extracting
coal from the earth may be centuries back. Coal industry plays crucial role in shaping up
economic development of many country. Coal industry is a major part of mining industry. As
mentioned above it is also play important role in shaping up economic development of a
country. It is a well known fact, that coal sector is very capital intensive sector and required
big capital expenditure to develop any Greenfield project in this sector. In today’s world coal
sector is main resource for energy requirement of human being across the world and Australia
is also one of the important players of this field.
Importance of the sector can be judge by the capital expenditure incurred by some big
companies of world and Australia. Following graph has shown mining expenditure occurred
by top mining companies, like, BHP, Rio Tinto, Glencore and Angle American.
Capital Expenditure in Mining sector by world’s top companies
Coal Industry in Australia
Australia has vast coal reserve, which available abundantly in various parts of it. Australia’s
huge coal reserve is one of the major sources of energy requirement in Australia. Coal
contributes in fulfilling 60% of Australia’s electricity demand through coal-fired power
stations. Recent data has shown Australian total Coal production, including black and brown
coal, at 414 million tonne, which is 5% of world total coal production. Australia has ranked
4th position in coal production in world; table given below has a list of all top coal producing
countries, rank wise.