Coal Mines Opening Issues - Case Study Example

Comments (0) Cite this document
An author of this writing seeks to investigate the possible risks and issues followed by the business decision of opening coal mines. Thus, the following paper will intend to predict the nearest future of energy resources in order to determine the reliability of coal…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER93.6% of users find it useful

Extract of sample "Coal Mines Opening Issues"

Decision of the businesses opening up coal mines and exploiting these resources is an economic decision and it is the concept of margin that plays decisive role in it. Concept of margin with reference to production level refers that firm shall produce an additional unit only when the revenue generated by that additional unit is equal to additional cost incurred by that particular unit. This equating level of additional cost and additional revenue is the point where profit is maximum and fulfils the aim of every business to maximize profit. If the productions are below or above the equating level of marginal cost and marginal cost, then the firm faces loss in short run. Hence, economically production in short run has to be confined within the range where two variables equate to get maximum profits.
Opening up of coal mines and exploiting these resources will also be determined by this same factor. Coal mine exploration requires extensive capital investment and few firms in the world are capable of doing it. With this capital intensive investment, firms will be required to generate considerable revenue where it is able to equate two variables. At the same time, exploiting these resources will increase supply that would take prices down and expectations to receive higher marginal revenue as compare to marginal cost remains vulnerable. Therefore, there can be two circumstances where the required level for two variables is achievable; first the demand for coal rises to the point that drives prices dramatically upward as happened in the case of oil. This rise in price would increase the marginal revenue for each additional ton of coal exploited as compare to cost of each additional ton of coal produced. The other option to get marginal cost equal to marginal revenue is if the cost component shows some decrease. For instance, technology development that drives the cost down in areas such pilot project or of reclaiming the land and replanting it etc.
Demand for coal is expected to peak in future by the time alternative energy resources share considerable contribution. Coal is used in many forms such as liquefied, gasified, solid and for various purposes such as fuel, electricity production, industrial process etc. Exploration of coal reserves can also be adopted as when the alternative sources deplete, get more expensive or cost of importing them get higher than exploring coal. Therefore, if the exploration cost of coal gets considerably less than that of oil and alongside economic condition of for making this decision is met i.e. marginal cost equal to marginal revenue, then businesses will divert resources to coal exploration in Europe. Read More
Cite this document
  • APA
  • MLA
(“Coal Mines Opening Issues Case Study Example | Topics and Well Written Essays - 500 words”, n.d.)
Coal Mines Opening Issues Case Study Example | Topics and Well Written Essays - 500 words. Retrieved from
(Coal Mines Opening Issues Case Study Example | Topics and Well Written Essays - 500 Words)
Coal Mines Opening Issues Case Study Example | Topics and Well Written Essays - 500 Words.
“Coal Mines Opening Issues Case Study Example | Topics and Well Written Essays - 500 Words”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Coal Mines Opening Issues

Coal to Liquid Technology

...consumption increased by approximately 6% while world consumption increased by approximately 9%. The US accounted for 13% of the world’s consumption in 2010. Coal Reserves 2008 Description 2008 2007 2006 2005 2004 World 948,000 USA 260,551 Table 2: Coal Reserves USA and the World – Source U.S. Energy Information Administration The table shows that in 2008 the US held 27% of the world’s coal reserves. This is a very high percentage and indicates how beneficial coal would be if a way is found to reduce its effect on the environment. 3.0 Arguments against the use of coal Many arguments have being put forward against the use of coal. They...
10 Pages(2500 words)Essay

All about Coal

...?I. Introduction Although perceived as difficult to obtain and been the cause of hundreds of deaths In the last 500 years, coal is still a valuable resource in today’s economy. In the following pages, I will discuss several things in reference to coal. I will cover a history of coal itself, as well as the how, wherefore and why of its existence. I will also cover the different types of coal, how we get it and how and why we use it. There are many benefits to the usage of coal worldwide, and herein will discover some of those benefits. II. History The history of coal is extensive, dating back to 1575 when Sir George Bruce of Scotland...
7 Pages(1750 words)Research Paper

How coal is fromed

...?Coal is one of the most ancient known sources of energy in the world. It is been used almost since the beginning of the humanity. For centuries it has been vital for the mankind to sustain heat in dwellings as well as being used for cooking, making clay pots and much more. Later, with the industry development, besides being a source of energy and fuel, the coal became a vital element in steel and cement production, production of benzol, methane, tar, coke and more. Coal is one most important and used source of the energy in the world. It has been used to produce almost 40% of electricity worldwide, with some countries using it much more extensively for that purpose: produce of...
3 Pages(750 words)Research Paper

Uses of coal

...: Poland relies on coal for over 94% of its electricity; South Africa for 92%; China for 77%; and Australia for 76%. Coal has been the world’s fastest growing energy source in recent years – faster than gas, oil, nuclear, hydro and renewables (The Coal Resource). Coal has a very long and varied history. Some historians believe that coal was first used commercially in China. There are reports that a mine in northeastern China provided coal for smelting copper and for casting coins around 1000 BC. One of the earliest known references to coal was made by the Greek philosopher and scientist Aristotle, who...
4 Pages(1000 words)Research Paper

Mountaintop Removal Coal Mining

.... An increase in cases of cancer, kidney failure and heart disease is now becoming an increasingly common health issues people living in the Central Appalachian region have to endure. Air pollution is also an environmental problem caused by the mountain removal mining method. Powerful explosions that occur at the mine sites send rock and coal debris flying in the air making it unfit to breath to humans (Chhotray 9). Lung related diseases, for example, Coal Worker’ Pneumoconiosis, tend to affect people leaving in this type of polluted environment. Sometimes the debris that is blasted can be big in size and cause physical injuries to the unsuspecting...
8 Pages(2000 words)Essay

Twain Opening

...Twain Opening There is little voiced debate that Mark Twain is one of the greatest American of all time. His often brash and slyly satirical wit combined with his mastery of the English Language place him on a pedestal next to a picture of Uncle Sam holding a Bald Eagle as a symbol of American pride and patriotism. Yet very little is publicized about what a voracious anti-war activist and political-reform advocate Mark Twain actually was. In a lesser known but incredibly powerful short fiction by Twain titled "The War Prayer," the author uses his rapier wit and a fountain pen to voice his ironclad opinions on American involvement in foreign wars, the complete disillusionment of the Christian Religion, and questions the...
1 Pages(250 words)Essay

Opening business

...Hotmail (free of cost email service) as a global product. A global product or service can indeed be marketed as it is claimed by every major producer of global products. For example, Google markets its search engine in various countries with respect to the local social and cultural issues. Another example of car manufacturing and producing giant Toyota, who market their global products (such as Toyota Corolla) which are meant to be for the use in various regions of the world by different types of end-users with different specifications and different levels of customizations. However, this also is a very controversial claim. A true global product is the one which is produced with a same version for multiple regions of...
2 Pages(500 words)Essay

Opening Exercise

...Teacher Guessing Game I. Purpose a. The purpose of the game is to teach members how to solve communication issues and to understandterms, concepts about a certain subject. b. HR words and concepts like employee relations, retention, attrition, motivation, performance, feedback, will be learned by the participants through a game. c. The game will also help participants to realize the value of communicating properly to be understood especially in an organizational setting where there are a lot of factors that could hamper communication. II. Ideal size The game is composed of two teams with one moderator. Being such, the ideal number is odd and that includes the number of the team members. The idea of having an odd number...
3 Pages(750 words)Essay

Opening Excises

... Teacher that thing I. Purpose To serve as an ice breaker of a new and allow to know each other through a game To acquaint students with HR terminologies and concepts in a fun way It is expected that after the game, the students will be acquainted with the concepts of human resource, employee relations, performance appraisal, productivity and other similar terms used in the class. II. Ideal team size Ideal team size is less than 10 individuals to make it less chaotic. The number of teams can be as many as four teams. The team members can take turns in playing the game. There has to be a one person moderator which could be a member of the class or the teacher. III. Materials needed White board, pentel pen, paper, small box IV... Teacher that...
3 Pages(750 words)Assignment

Coal Mining in America and Environmental Issues

...Energy and Conservation - Coal Mining in America and Environmental Issues Introduction The energy consumption groups in United States of America are essentially dived into four group viz. residential, commercial, transportation and industrial by the United States Department of Energy. An estimate reveals that the residential and commercial group together consumes more than one-third of the energy produced in America. America is mainly classified to be an industrialized nation with industry being the major contributor to the country’s economic growth. The industrial sector with industries like Petroleum Refining, Steel Manufacturing, Aluminum Manufacturing, Paper Manufacturing, Chemical...
8 Pages(2000 words)Research Paper
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Case Study on topic Coal Mines Opening Issues for FREE!

Contact Us