CASEBOOK

Pro Membership
  • Foundation
  • Advanced
  • Login
Menu
  • Foundation
  • Advanced
  • Login
Search

CASEBOOK

Pro Membership
Search

CASEBOOK

Search

Competitive Strategy in Mining Strategy

Practice with Case Partner: Format

Change Preparation Mode

Preparatory Options

    Preparation Mode
    Practice with Case Partner Interview Transript & Solution
    Case Pre-reads
    Growth Strategy Framework Balance Sheet Statement of Cashflow Net Present Value
    Quick Navigation
    Explore more in Growth Strategy Explore Other Case Categories
    Popular Case Categories
    Growth Strategy Increase Profitability Market Sizing Explore All Case Categories
    Preparation Mode
    Practice with Case Partner Interview Transcript & Solution
    Case Pre-reads
    Growth Strategy Framework Balance Sheet Statement of Cashflow Net Present Value
    Quick Navigation
    Explore more in Growth Strategy Explore Other Case Categories
    Popular Case Categories
    Growth Strategy Increase Profitability Market Sizing Explore All Case Categories

Case Type: Competitive Strategy

Case Style: Interviewer Led

Industry: Mining

Case Type: Competitive Strategy

Industry: Mining

Case by Bain & Company

Our client, Arch Coal Ltd. is an American coal mining and processing company. The company mines, processes and markets bituminous and sub-bituminous coal with low sulfur. It is one of the largest private sector coal mining player in the US. They own coal mines all across the world and sells exclusively to the Chinese energy companies. The company is the largest supplier of coal by volume in Chinese market with 90 million tons of coal sold last year. They are also the lowest cost producer of coal in the market at $25 per ton.

In the first quarter of this year, our client has gained an additional rights to mine one of the neighboring fields (called Site B) in Haerwusu, China and wishes to increase their annual production volume to 140 million tons per year (i.e. 50 million tons of additional coal). They have hired us to conduct a study and recommend if it is worth mining this additional site now?

Additional information (To be provided only on request)

  • Client’s objective behind increasing coal supply is to improve profitability & pave path for future growth of the company
  • Average demand for coal in China is flat for years now and is estimated to be around 450 million tons per year.
  • Initial investment required to start mining activities at Site B is $3 bn
  • Projects with payback period within 5 years are preferred by Arch’s senior management

To read the full article

SUBSCRIBE

SIGN IN

THE CASE CONSULTANTS

CONTINUE READING YOUR ARTICLE WITH PRO-MEMBERSHIP

STARTING LESS THAN ₹99 PER MONTH

VIEW PRO-MEMBERSHIP OPTIONS

This is an interviewer led strategy case where the candidate is required to study the economics of the Chinese coal mining industry and evaluate if it has potential to absorb 50 million tons of additional coal supply.

Explore More By Case Categories

By Case Type

Add Capacity & Growth

Business Competition

Business Turnaround

Improve Profitability

Improve Sales / Revenue

Industry Analysis

Market Entry

Market Sizing

Merger & Acquisition

New Product

Supply Chain Optimization

Pricing & Valuation

By Consulting Type

Mckinsey & Company

Boston Consulting Group

Bain & Company

A.T. Kearney

Deloitte Consulting

Accenture

IBM Global Business Services

KPMG Consulting

PricewaterhouseCoopers (PwC)

Roland Berger Strategy

Ernst & Young

ZS Associates

Foundation section top picks

expert's choice

Standard Costing

Financial accounting

Working Capital & Liquidity

Evaluating business investments

Inventory & Cost of goods sold

Trending Topics

Featured

Accounting Basics

Some of the basic accounting terms that you will learn include revenues, expenses, assets, liabilities, income statement, balance sheet, and statement of cash flows.

Chart of accounts

A chart of accounts is a listing of the names of the accounts that a company has identified and made available for recording transactions in its general ledger.

Trending Topics

Break-even Point

Depreciation

Activity Based Costing

Credits & Debits

Bank Reconciliation

Manufacturing Overheads

Non-manufacturing Overheads

Improving Profits

standard costing

A chart of accounts is a listing of the names of the accounts that a company has identified and made available for recording transactions in its general ledger.

Advanced section top picks

expert's choice

Standard Costing

Financial accounting

Working Capital & Liquidity

Evaluating business investments

Inventory & Cost of goods sold

Trending Topics

Featured

Accounting Basics

Some of the basic accounting terms that you will learn include revenues, expenses, assets, liabilities, income statement, balance sheet, and statement of cash flows.

Chart of accounts

A chart of accounts is a listing of the names of the accounts that a company has identified and made available for recording transactions in its general ledger.

Trending Topics

Break-even Point

Depreciation

Activity Based Costing

Credits & Debits

Bank Reconciliation

Manufacturing Overheads

Non-manufacturing Overheads

Improving Profits

standard costing

A chart of accounts is a listing of the names of the accounts that a company has identified and made available for recording transactions in its general ledger.

GET ACCESS TO CASE PARTNERS, 150+ BUSINESS CASE STUDIES & TUTORIALS, CASE STUDY SCENARIOS & FRAMEWORKS, INDUSTRY ANALYSIS, ARTICLES, MENTAL MATHS TOOLS & MUCH MORE …..

Twitter Facebook-f Dribbble Youtube Pinterest

RESOURCES

  • Business Frameworks
  • Case Library
  • Industry Analysis
  • Mental Maths
  • Puzzles

ABOUT US

  • Privacy Policy
  • Terms
  • Careers
  • Success Stories
  • Contact Us

IMPORTANT LINKS

  • Business Finance
  • Consulting Case Studies
  • Operations Section
  • Business Editorials

© All rights reserved

Made with ❤ by Macboi Productions