...Wesfarmers Coal division, with mining interests throughout Australia, is part of Wesfarmers Limited, a major diversified Australian public company. They only produce thermal (steam) coal and metallurgical (coking) coal, with the latter being exported (Figure A). As shown in Figure B coking coal is priced much higher than thermal coal. The firm’s coal interests include the Curragh mine in Queensland’s Bowen Basin, the Premier Coal mine at Collie in Western Australia’s south west, and a 40 per cent interest in the Bengalla mine in the Hunter Valley of New South Wales. Before analysing the challenges, it is beneficial to examine the market Wesfarmers operates in. The marketplace for coal is domestic, with the majority exported on the global market. The coal industry can be described by the classic perfect competition model via the following characteristics (Earl & Wakeley, 2005: 226-227): • Large number of potential buyers (global market) • Large number of potential competitors. World Coal Institute estimates that recoverable coal reserves are in more than 70 countries and supply will last approximately 155 years (World Coal Institute: 2007). • Large number of current competitors. Each competitor sells a perfect substitute for Wesfarmers coal. • There is no price regulation in the coal industry. According to Earl and Wakeley (2005: 227), these characteristics would make Wesfarmers a price-taking firm which has no control of the price it charges for coal. It has...
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...utilized. There is coal, which is a nonrenewable energy resource because there is a limited amount of supply. Then there is wind and hydropower, which are considered renewable energy resources; because there is an infinite amount of supply. The city council may want to take into consideration these two renewable energy sources for the many different advantages each source has to offer. West Virginia has an abundance of natural energy resources such as coal, wind, and hydropower; all of these energy resources could generate electricity and stabilize the community’s economy in various ways, including the different types of facilities, cost, and production output. West Virginia coalmines are amongst the top in the country for coal production. A 2009 study showed that five states in America produced close to three quarters of all the coal in the entire country, and West Virginia was number two on the list. Coal is used to generate electricity, heat, and for industrial uses. In the 2009 study, over ninety percent of the coal was used to generate electricity, a little over six percent was used in the industry, and less than one percent was used to generate heat (“Coal” 18). West Virginia mines a large portion of the countries coal every year and in order to keep up the high demand, most of the state workforce is employed by the coalmines. The West Virginia coalmines are the economic backbone for the state. There are a couple of key elements that make the coal mines so prosperous...
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...4. a. (i) Labour intensive industry refers to industry that requires substantial amount of human labour to produce industrial products. For example, in Australia coal mining is one of the labour intensive industries. According to Australian Coal Association (Coal & the Community), black coal mining is one of Australia’s most important industries that creates employment, low-cost fuel and important source of export revenue. (ii) Coal mining industry is labour intensive because this particular industry requires a large number of human labours to run heavy machinery and work in large factories to produce the goods. (iii) Economies of scale is where the long-run average cost declines as production increases in simple explanation where a manufacturing company saves money as its produce higher quantities of its product. In this case, mining industry are likely to develop economies of scale because it has the ability to mass produce products. (iv) In coal mining industry in Australia there numbers of firms in mining industry, however there are four major companies that dominates coal mining industry – Rio Tinto, BHP Billiton, Xstrata and Anglo American – together account for well over half of total Australian black-coal production. b. (i) Capital intensive industry refers to industry that requires substantial amount of capital in the production of goods. In Australia one of the capital-intensive industries is automotive industry. (ii) Automotive industry is capital intensive...
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...Luotang Power Company Background Luotang Power Company is a 600 Mega Watt coal-fired power plant, located in Hubei Province, China, the parent company of which is China Hua Tong Power (HT Power). The major business is to generate electricity by coal burning and sell it to Hubei Provincial Power Company (HPPC), the major customer which is the only power transmission and distribution company in Hubei Province. Whereas the coal is purchased from Pindingshan Coal Company who is required to supply low sulfur bituminous coal that meets certain quality specifications. Regardless of the improved plant availability and fuel economy, the company wasn’t performing well for the financial result. A variances analysis indicated that the poor performance was due to a combination of shrinking revenue, increasing price of the coal and decreasing quality of the coal. Company analysis Macroeconomic analysis A PESTE framework including political, economic, social, technological and environmental factors is used to contextualize the company in an industry framework. Economic aspect: China is the world second largest energy consumer behind the United States. The energy consumption has been boosted by strong economic growth over the past two decades. Its electricity consumption is influenced by fluctuations in the GDP growth. (Appendix1) Hubei led the four provinces fed by the central China grid with a 13.8% rise in economy and is said to be doubled in the next five years . This shows a positive...
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...Q1. What is microeconomics? “It is impossible to separate microeconomics from macroeconomics”- Do you agree with this statement? Justify your answer with appropriate argument. Ans: Microeconomics is derived from the Greek word ‘mikros’ meaning ‘small’. Microeconomics deals with the small individual units of the economy such as individual consumers, individual firms and small aggregates a group of individual units such as various industries or markets. Thus, microeconomic theory seeks to determine the mechanism by which the different economic units attain the position of equilibrium, proceeding from the individual units to a narrowly defined group. Microeconomic analysis concerns itself with narrowly defined groups since it does not study the totality of behavior of all units in the economy. In other word, the study of economic system or economy as a whole lies outside the domain of microeconomic analysis. Yes I agree with this statement that “It is impossible to separate microeconomics from macroeconomics”. The terms microeconomics and macroeconomics have their origin in the early 1930s, when economists strove to gain an understanding of factors that created the Great Depression. Separate mechanisms to describe the actions of individuals and aggregate populations were first described by the Norwegian economist Ragnar Frisch (1895-1973) in 1933. Frisch called these mechanisms "microdynamic" and "macro-dynamic." He wrote that micro-dynamic analysis seeks to "explain in...
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...eighteenth century Britain and not elsewhere in Europe or Asia? Answers to this question have ranged from religion and culture to politics and constitutions. In a just published book, The British Industrial Revolution in Global Perspective, I argue that the explanation of the Industrial Revolution was fundamentally economic. The Industrial Revolution was Britain’s creative response to the challenges and opportunities created by the global economy that emerged after 1500. This was a two step process. In the late sixteenth and early seventeenth centuries a European-wide market emerged. England took a commanding position in this new order as her wool textile industry out competed the established producers in Italy and the Low Countries. England extended her lead in the late seventeenth and eighteenth centuries by creating an intercontinental trading network including the Americas and India. Intercontinental trade expansion depended on the acquisition of colonies, mercantilist trade promotion, and naval power. The upshot of Britain’s success in the global economy was the expansion of rural manufacturing industries and rapid urbanisation. East Anglia was the centre of the woollen cloth industry, and its products were exported through London where a quarter of the jobs depended on the port. As a result, the population of London exploded from 50,000 in 1500 to 200,000 in 1600 and half a million in 1700. In the eighteenth century, the expansion of trade with the American colonies and India doubled...
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...Maida Siddiqui Moiz Tapal Ayesha Sarfaraz Usman Thar Coal Reserves C oal -the black gold is found in all the four provinces of Pakistan. Country has huge coal resources, about 185 billion tons (making Pakistan stand 18th in the world), out of which 3.3 billion tons are in proven/measured category and about 11 billion are indicated reserves, the bulk of it is found in Sindh province. The current total mine-able reserves of coal are estimated at 2 billion tones (60% of the measured reserves). The largest coalfield of Pakistan, Thar, is a resource potential of about 175 billion tones sufficient to meet country’s fuel requirements for centuries. The rank of Thar coal ranges from lignite-B to sub-bituminous-A with high moisture and low sulfur content. The average chemical analyses of the coal samples from the entire Thar coalfield are: Moisture | 46.77% | Volatile Matter | 23.42% | Fixed Carbon | 16.66% | Ash | 6.24% | Sulfur | 1.16% | Heating Value (Dry) | 10,898 Btu/lb | It is one of the world’s largest lignite deposits discovered by the Sindh Arid Zone Development Authority. In 1991, enormous coal deposits were conferred by the Geological Survey of Pakistan and the United States Agency for International Development, spread over more than 9, 000 sq. km. Estimated lignite deposits in Sindh, suitable for electric power generation and other applications are around 218 billion tons- about 98% of coal deposits of the country. If all the oil reserves of Saudi...
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...Introduction Energy is an important material foundation that survives and develops in human society. Throughout the history of development of human society, every civilization is accompanied by major advances in energy improvements and change. The development and utilization of energy has greatly advanced the world economy and development of human society. The types of energy They can be divided into two kinds of energy- renewable energy and non-renewable energy. Renewable energy derives directly from the sun, or from heat generated deep within the earth. They can be used to produce electricity, transport people and good, and generate heat from solar, wind, ocean, hydropower, biomass, geothermal resources, and biofuels. Since it comes from nature, so it is endless. Non-renewable sources are not environmental friendly and can have serious effect on our health. They are called non-renewable because they can be re-generated within a short period of time. Non-renewable sources exist in the form of fossil fuels, natural gas, oil and coal. In the future, the amount and proportion of renewable energy generated is set to rise, because of scarce supplies of gas and oil and also because of government policy and program to support renewable energy generation. China is the second nation that produces and consumes of energy in the world. Also, it is the world's largest developing country. To get rid of poverty and to expand economic, Chinese government and people...
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...Coal mining in South Africa plays a significant role in the country’s economy as it is responsible for nearly three quarters of Eskom’s fuel supply. The industry is also responsible for supplying the coal-to-liquids (CTL) industry, developed by the South African fuel company, SASOL, who produces around 35% of the country’s liquid fuel. It is centered on the Highveld, with roughly 60% of the country’s deposits located in eMalahleni (Witbank) and surrounding areas. The largest coal deposits in South Africa are to be found in the Ecca Group. The Ecca Group covers around two thirds of South Africa and contains more than a third of all coal reserves in the Southern Hemisphere. Some coal fields in South Africa are Waterberg, Highveld, Witbank, Ermelo, Utrecht and Klip River Coal fields. South Africa makes extensive use of coal for electricity generation in its domestic economy as well as exporting approximately 28% of its coal production, mainly through the Richards Bay Coal Terminal, making South Africa the fourth-largest coal exporting country in the world. By international standards, South Africa's coal deposits are relatively shallow with thick seams, which make them easier and usually cheaper to mine. There has been a decline in high-quality reserves in recent years resulting in an increased political and industrial push for the application of technical advances to extend the life of major coal deposits. There are 2 processes in how coal is mined, namely: surface mining and...
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...nuclear power as a means of providing for the world’s energy needs. Discuss the implications for Australia’s mining industry? Australia is the world’s largest coal exporter and has the second largest deposit of coal in the world. Although the world is currently in the throes of a global financial crisis, Australia’s economy one of the few in the developed world to stay afloat has been buoyed considerably by its exports industry, particularly that of coal. Despite Australia’s promise to reduce carbon emissions by 5% in accordance with its commitment to the Kyoto protocol, the coal industry has been lucky enough to avoid almost all penalties that other industries are set to receive under the proposed carbon emission trading scheme . This combined with Australia continuing to stall further international discussions on combating climate change has earned Australia the reputation of “A nation of climate sinners” . It is obvious that despite a lot of rhetoric on the importance of addressing climate change, the Australian government is not willing to commit to solving the global challenge of climate change to an appreciable degree while such a large part of the Australian economy is at stake. For the Australian government to fully commit to its promises on combating climate change, a way to free the Australian economy of its coal dependence needs to be found. The world is in a new era of energy production where it is no longer a question of which energy technology will prevail, but rather...
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...here and do nothing. The use and mining of coal is one of the largest environmental factors in the world. According to the World Health Organization, “coal particulates pollution are estimated to shorten approximately 1,000,000 lives annually worldwide, including nearly 24,000 lives a year in the United States”. You may think, why are we still using and mining this stuff if it is killing us? We really shouldn’t be, but the only problem is that harming the environment can be an offset of making a lot money. As it will be looked into...
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...means that it becomes harder and harder to pump up the oil these days. Eventually the costs will exceed the benefits. Without payable energy resources the world economy will collapse which will result in hunger, chaos and war. Action has to be taken on a wide scale to prevent these scenarios and the European Union has a big role in this. Leaders and civilians have to be prepared, lifestyles adjusted and alternatives implemented. I can argue that securing the availability of the EU’s energy resources can only be done by modifying all member states, from fossil energy consumers, to renewable energy consumers. The European Union and fossil energy resources Only 15.59% of all oil the EU member states consume comes from their own natural resources. This means that 84,41% comes from non-EU members which shows how dependent we as the EU are on other countries. The EU is mostly dependent (42,4%) on the FSU (former soviet union) with Russia as its biggest supplier.[1] This means that they decide whether the prices are high or low. And nowadays, with the oil peak that is reached and other negative forecasts, barrel prices are increasing rapidly. Next to oil, another major energy resource is gas. By 2030, 60% of all natural gas the EU consumes comes from Russia too.[2] Clearly, Russia is of big importance for the EU’s economy since each and every European company needs natural resources for its processes. Oil and gas are substances that are created millions of years ago. It took...
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...MBA-IB, Sec: A 1226112109 The World's Greatest Coal Arbitrage: China's Coal Import Behavior and Implications for the Global Coal Market Summary China is home to the world’s second largest proven coal reserves after the United States. In addition, prior to 2009, China was a net coal exporter. Coal is a cornerstone of the Chinese economy, representing 77 percent of China’s primary energy production and fueling almost 80 percent of its electricity. Moreover, China is the world’s top coal consumer, accounting for nearly half of global consumption in 2010. Over the past decade, China’s domestic coal output has more than doubled while its coal imports have increased by a factor of 60—the country’s dependence on other nations’ coal exports is growing. In 2009, the global coal market witnessed a dramatic realignment as China burst onto the scene, importing coal from as far away as Colombia and the United States. With 182 million tons (Mt) of coal sourced from overseas suppliers in 2011, China has overtaken Japan as the world’s top coal importer. Moreover, as the world’s top coal consumer, China’s imports could rise significantly again by 2015. China’s recent move from being a net coal exporter to a net coal importer portends significant changes on the global stage, especially in terms of climate change. Understanding China’s rising coal imports is crucial for managing their global impact. Introduction In 2009 the global coal market witnessed one of the most dramatic realignments...
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...a look at Coal in India: current status and outlook The world cannot do without coal. This energy source covers more than one-quarter (28.4% in 2006) of all primary energy consumption and is used to generate nearly 40% of all electricity consumed worldwide. All scenarios and forecasts agree that coal consumption will be growing substantially, driven mostly by China and India. According to the IEA reference scenario (World Energy Outlook 2007), these two countries are expected to account for 82% of the increase in global coal demand by 2030. The outlook for India gives cause for concern: despite a strong domestic coal industry, it could eventually become a major importer. If so, what will the economic, industrial and environmental consequences be? India ranks Number Six in the world for the consumption of primary energy (432 Mtoe in 2006). Its appetite for energy is growing extremely rapidly: it averaged 6.7% a year between 2003 and 20061. Given the demographics, consumption per capita is one of the lowest in the world (512 kgep per capita in 2003), but this figure is steadily increasing. Fig. 1 - Trends in the consumption of commercial primary energy and coal in India 450 400 350 Millions of toe Consumption of primary energy Consumption of coal 300 250 200 150 100 50 0 1980 1985 1990 1995 2000 2005 Consumption rising fast Coal continues to dominate India's energy portfolio Reporting a figure of 238 Mtoe for 2006, India was the Number Three coal consuming country...
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...Changing to renewable sources of energy that have less of an impact on the environment has become a hot topic in the last ten years, and at the center of this ethical debate is coal energy. As of 2013 about forty-three percent of electricity produced in the United States came from coal energy, while it also produced a staggering seventy-seven percent of carbon dioxide emissions from electricity generation. This rate is much higher in other less developed countries around the world (Coal, 2013). With coal energy still being one of the major forms of energy production, coal energy companies are still trying to secure new contracts to mine coal in new places throughout the United States. Recently this issue has reached the Pacific Northwest as Ambre Energy has been working on obtaining a permit to mine and transport coal through the Columbia River Gorge with mining in Boardman, Oregon. As of today their permit has been denied, but they are in the process of appealing this decision. There are many ethical issues on both sides that will ultimately determine whether or not Ambre Energy is allowed to proceed and obtain a permit to mine and ship coal from Boardman, Oregon. If approved current estimates are that Ambre Energy would be mining and shipping approximately eight million tons of coal per year through the Columbia River Gorge (Friends, 2014). The ethical lens that most easily pertains to this situation is Utilitarianism, which is the greatest good for the greatest...
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