US Coal Industry: Consolidation on Hold
The US coal industry saw rapid consolidation during the 1990s up to about 2003. Since that time, the amount of consolidation has essentially stopped and the relative position of the leaders in the field. Only industry leader Peabody Coal managed to increase its market share in a moderate way.
This stasis is remarkable in itself. The coal industry record profits and increasing demand so there is lots of money on the table. Other mining and resource industries have seen massive consolidation over the past few years, including many buys of mining operation by coal leader Rio Tinto. So you would expect one of the leaders to swallow up one of down or so companies with between 0.5 and 2.0 percent market share. I'm utterly puzzled over this one.
Coal Industry Leaders
| Company |
2002 share |
2003 share |
2007 share |
Notes |
| Peabody Coal |
13.3 |
16.5 |
17.8 |
|
| Rio Tinto |
10.2 |
10.7 |
10.9 |
Was Kennecott Energy |
| Arch Coal |
10.1 |
14.0 |
10.4 |
|
| CONSOL Energy |
5.6 |
5.5 |
5.8 |
|
| Foundation Coal |
6.4 |
5.9 |
5.7 |
Was RAG American Coal |
| AT Massey Coal |
4.0 |
3.7 |
3.7 |
|
| North American Coal |
2.7 |
3.0 |
2.7 |
|
| Westmoreland Coal |
-- |
2.6 |
2.6 |
|
| TXU |
2.2 |
2.3 |
2.0 |
Private equity coalition in process of acquiring parent company |
| Alliance Coal |
--- |
--- |
1.9 |
|
Figures from US Department of Energy
1:01:24 PM 
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