AbstractsEarth & Environmental Science

The energy crises in the seventies and eighties had led to an awareness in the world's business community about the profit potential in the energy mineral supply market. All the sectors in this industry came under scrutiny, also the coal export sector. This awareness and rising interest in the world's coal export market caused amongst others, two major developments : a) a significant rise in investments in coal exporting ventures b) a higher expectation by shareholders with respect to capital returns and future growth Most companies participated in this expansion campaign, and committed resources to achieving the higher objectives. The downturn in'the world's economy , and the resultant diminished demand for energy minerals, caused the coal export market to come under pressure. The long lead time existing in the establishment of mining projects, and the fact that mines under construction cannot be mothballed until times improve, also contributed to the over-capacity situation that eventuated in the coal export industry worldwide. Many companies faced a battle for survival, and participants in the industry had to re-appraise their long term strategies. Established coal producing companies had to determine which strategies would best answer their requirements : a) whether it be to divest from coal production b) whether they should diversify their operational base and many others...