Scorched earth: The exit of three of the industry's major players has crushed revenue

Brown coal is a product in search of a market. Deposits in Australia are abundant, cheap to access and occur so close to the earth's surface that some industry participants use bulldozers to clear away overburden. As it stands, the Brown Coal Mining industry's activities are limited to supplying the Fossil Fuel Electricity Generation industry. Miners have been unable to develop export markets, as brown coal is too heavy, unstable and low in energy value to make it economically viable to transport overseas. Brown coal also has limited use in other domestic applications. The industry's major players are vertically integrated mine operators and electricity generators that operate power stations located close to their coal mines in more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24
Market Share of Companies

Industry Threats & Opportunities

  • AGL Energy and EnergyAustralia are the only companies that mine brown coal in Australia
  • Several brown coal power stations have shut down over the past five years
  • In Victoria, abundant reserves of brown coal exist that are currently uneconomical to access
  • Industry Report - Industry Analysis Chapter

    The Brown Coal Mining industry’s output is used exclusively in the Fossil Fuel Electricity Generation industry. The heavy weight and low energy content of brown coal limit its downstream uses, as does its propensity to spontaneously combust when stored or transported in large volumes. These factors are reflected in the industry’s structure, with the major players owning and operating brown coal mines situated in close proximity to their downstream power stations. Without export markets, the relative competitiveness of brown coal energy generation in the broader electricity generation market is what determines demand for industry products.Revenue and profitabilityIndustry revenue is expected to decline at an annualised 9.2% o...purchase to read more.

    Additional Insights for the Brown Coal Mining Industry

    IBISWorld has determined the most important Key Success Factors for the Brown Coal Mining are:

  • Downstream ownership links
  • Access to the latest available and most efficient technology and techniques
  • Ability to accommodate environment requirements
  • IBISWorld analysts also discuss how external factors such as Electricity service price and Demand from manufacturing in the Brown Coal Mining industry impact industry performance..

    shopping_cartPURCHASE OPTIONS

    Look under the hood?

    Download a FREE sample report

    Top 500 Companies List
    has been released

    Click here for more

    What's in this report

    What is the Brown Coal Mining Industry?

    Industry companies mine brown coal using open-cut mining. Mining operations include coal extraction and any associated processing activities.

    Industry Products
  • Brown coal
  • Industry Activities
  • Brown coal (lignite) mining
  • Brown coal mine operation
  • Peat cutting
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Electricity service price
  • Demand from manufacturing
  • Demand from fossil fuel electricity generation
  • Demand from hydro-electricity generation
  • Public concern over environmental issues

  • Current Performance
  • Revenue and profitability
  • Industry structure
  • Environmental regulation
  • Electricity demand
  • Chart: Revenue Growth

  • Industry Outlook
  • Structural issues
  • Regulatory outlook
  • Table: Brown Coal Mining Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Brown Coal Mining Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Basic Organic Chemical Manufacturing
  • Fossil Fuel Electricity Generation

  • Key Selling Industries
  • Electricity, Gas, Water and Waste Services
  • Mining and Industrial Machinery Wholesaling
  • Petroleum Product Wholesaling

  • Products & Services
  • Brown coal
  • Chart: Brown Coal Mining Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Electricity generators
  • Chart: Major Market Segmentation for the Brown Coal Mining Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Brown Coal Mining

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Brown Coal Mining Industry

  • Industry Globalization
    AGL Energy Limited, EnergyAustralia Holdings Limited,
  • Table: AGL Energy Limited - financial performance
  • Table: EnergyAustralia Holdings Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Brown Coal Mining Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Brown Coal Mining Industry
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Base Load Power
  • Power supplied by plants that operate continuously to produce a constant amount of electricity. Brown coal is used as an input in base load power plants.
  • Brown Coal
  • A sedimentary rock with a high water content, used almost exclusively to generate power. Brown coal is also known as lignite.
  • National Electricity Market (Nem)
  • A wholesale electricity market in Tasmania, Victoria, South Australia, New South Wales and Queensland.
  • Open-Cut Mining
  • A type of surface excavation in the form of an inverted cone. The shape of the mine opening varies with the shape of the mineral deposit.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Brown Coal Mining market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Brown Coal Mining:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Brown Coal Mining market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Brown Coal Mining, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

    Contact Us

    Want to speak to a representative? Call us.