Mining, Our Own Business: Small Underground Coal Operations

The Appalachian coal region is an area here the small mining operation dominates. The large number of small operations makes the coal industry in chat area very competitive, the industry concentration ratio being low. This feature is reflected in the nature and behavior of the coal supply and demand viz a viz the coal market. The vast majority of the small coal operations in Eastern Kentucky for example, are contractors. The circumstances under which a large mining company can elect to use contractors to supplement their coal production are examined. The pros and cons of small underground single unit mines and larger multiple unit mines are discussed.