The paper 'Overview of Macarthur Coal Company" is an outstanding example of a business case study. Coal mining is the key economic activity in Australia (Tucker, T. & Janis, M. ( Australia Coal Association) 2002). At the moment, the mining of coal in Australia is carried out by many companies like Idemitsu Kosan, Centennial Coal, RAG Australia Coal, Power Coal Limited, Wesfarmers Coal Limited, MIM Holdings, Anglo Coal Australia, Rio Tinto Limited, Xstrata PLC, and BHP Billiton Limited. The major coal mining companies in Australia are Anglo Coal Australia, Rio Tinto Limited, Xstrata PLC, and BHP Billiton Limited.
The current major coal mining companies in Australia arose as a result of company mergers and change of company management. For instance, BHP Billiton initially was known as BP Australia and over the years has changed business management to BHP Australia, BHP Coal PTY Limited, Coal PTY Limited, BHP Coal PTY Limited and now it is known as BHP Billiton Limited. When BHP Billiton Limited was under the management of BP Australia, there were companies such as Shell Coast Australia, Power Coal, MIM Holdings, Cyprus Amax Coals, Peabody Resources, ARCO coal, Exxon Coal and Oceanic Coal Australia limited. Coal mining mergers played a great role in restructuring the Australian Coal industry that was geared towards streamlining management of the Coal industry in order to achieve a reduced operating cost and ensure there was the prevalence of remarkable growth through concentration of coal mining and operations.
The coal mining mergers strategy was also meant to address declines of coal process. This was streamlined with the formation of the Australia Coal Association. Mining of coal in Australia has many economic advantages.
Some of the economic advantages of coal include first, creation of job opportunities to the Australians directly and indirectly. The Coal industry employs more than 30,000 Australians directly. The coal industry is the greatest foreign exchange earner of Australia. Australia earned $A 22.5 billion in foreign exchange in the year 2006-2007 that was 8% lower than the previous trading year 2005-2006 that saw Australia earn $A 24.5 billion in foreign exchange (Table 1). Black Coal accounts for 19 % of Australian total exports. Her main export markets are mainly Asia countries that import up to 80% of her total coal exports.
The main coal exported is coking coal and steaming coal. The main Asian coal importers are Japan that accounts for 44% coal exports, China, Republic of Korea, Malaysia, Thailand, Turkey and Taiwan (Table 2). Coal is used in the generation of electricity and as fuel. Burning of coal produces greenhouse gases that significantly contribute to global warming. Australia takes part in reforming world climate change by adopting measures that would eventually lead to a decrease of emission of greenhouse gases into the atmosphere.
Australia has set up a National Clean Coal Fund to the tune of $A 500 million. She has also set up a National objective for clean coal-generated electricity that is expected to enter the National grid by 2020. She also funds CSIRO by $A 25 million that is spread over four years in order to strengthen her leadership role in research and development of clean coal technologies that will ensure Australia secures her $A 24.5 billion Coal export industry and protects the employment opportunities of her citizens.
CEDA. (2005, April). infrustructure: getting on with the job. pp. 25.
Macarthur Coal limited. (2007, January 25). Macarthur declares force Majeure after QLD flooding. Asiapulse news .
Tucker, T. & Janis, M. ( australia Coal Association). (2002, November). Consolodation in the Coal Industry.