SIC 5052
COAL AND OTHER MINERALS AND ORES

This industry comprises establishments primarily engaged in the wholesale distribution of coal and coke, metallic ores (such as copper, iron, and lead), and nonmetallic minerals (except crude petroleum). It also includes establishments engaged in the wholesale distribution of precious metal ores (such as gold ore and silver ore).

Establishments primarily engaged in the wholesale distribution of semifinished precious metals are classified under SIC 5094: Jewelry, Watches, Precious Stones, and Precious Metals. Establishments primarily engaged in the wholesale distribution of nonmetallic minerals used as construction materials are classified under SIC 5032: Brick, Stone, and Related Construction Materials. Establishments primarily engaged in the wholesale distribution of crude petroleum and petroleum products are classified under SIC 5171: Petroleum Bulk Stations and Terminals.

NAICS Code(s)

421520 (Coal and Other Mineral and Ore Wholesalers)

According to the U.S. Census Bureau, 649 establishments were classified in this industry in 2001; this figure has declined consistently since the 1980s. They were subdivided into establishments primarily engaged in wholesaling coal, which accounted for approximately 50 percent of establishments, and those primarily engaged in wholesaling other minerals and ores, which made up the remaining 50 percent. Coal sales were around $660.3 million, and sales of other minerals and ores topped $429 million. Total sales for this industry reached $7.7 million in 2003.

U.S. Coal Production, 2001
By region, in millions of Short Tons
	2001	2002
SOURCE : Energy Information Administration—Annual Coal Report 2002
Appalachian	431.2	396.2
Interior	146.9	146.6
Western	547.9	550.4
Refuse Recovery	1.8	1.0
Total	1,127.7	1,094.3

The majority of industry establishments are merchant wholesalers. Sales by merchant wholesalers, however, typically represent only a third of industry sales. The establishments classified as manufacturer sales branches and offices represent approximately 48 percent of industry sales. Agents, brokers, and commission merchants make up the remainder of industry sales. The states with the most establishments were Ohio, Pennsylvania, Kentucky, and West Virginia.

According to the Annual Coal Report, total U.S. coal production declined 3 percent in 2002. The downturn of the economy, as well as a mild winter, impacted the overall consumption. In addition, coal prices increased across the board in all sectors of coal production in both 2001 and 2002. As a result of the decline, five major coal companies filed for bankruptcy in 2002, with an additional four more in progress. Some filed for Chapter 11 while others sold their interests to other coal companies. As natural gas prices rise so does the demand for coal. U.S. coal production is expected to increase 1.5 percent annually through 2025.

Some of the leading companies in this industry, according to Ward's Business Directory 2000, include Arch Coal Sales Company Inc. of St Louis, Missouri, with annual sales around $1 billion; Electric Fuels Corp. of St. Petersburg, Florida, with estimated sales over $600 million; and Hickman Williams and Co. of Livonia, Michigan, with annual sales around $290 million. The top ten coal producers in 2002 were Peabody Energy Corp.; Kennecott Energy & Coal Co.; Arch Coal Inc.; RAG American Coal Holding Inc.; Consol Energy Inc.; Massey Energy Co.; Vulcan Partners L.P.; Horizon Natural Resources Inc.; North American Coal Corp.; and TXU Corp. According to the Energy Information Administration, these top ten companies accounted for 62 percent of the total market.

Further Reading

Annual Energy Outlook 2004 with Projections to 2025. Energy Information Administration. Available from http://www.eia.doe.gov/oiaf/aeo/overview.html .

Coal News and Markets. Energy Information Administration, 2004. Available from http://www.eia.doe.gov/cneaf/coal/page/coalnews/coalmar.html .

D&B Sales & Marketing Solutions, 2003. Available from http://www.zapdata.com .

Major U.S. Coal Producers, 2002. Energy Information Administration. Available from http://www.eia.doe.gov/cneaf/coal/page/acr/table10.html .

U.S. Census Bureau. Statistics of U.S. Businesses 2001. Available from http://www.census.gov/epcd/susb/2001/US421420.HTM .

Ward's Business Directory of U.S. Private and Public Companies 2000. The Gale Group, 2000.