chapter  3
24 Pages

The financial performance of coal enterprises

Several factors make the financial performance of coal mining enterprises a particularly pressing issue in many countries. Rising costs because of the gradual depletion of available resources have depressed financial outcomes. The heavy reliance of many localities on coal production has also made the economic issue of the decline of an enterprise into a broader question of welfare and social order. On the demand side, the crucial role energy plays in national economies has induced many governments to interfere in its supply and price, bringing any resulting financial problems into the political sphere. In the UK poor financial performance was one factor leading to the industry’s nationalization.