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ACI » Topics » Excess production and production capacity in the coal industry could put downward pressure on coal prices and, as a result, materially and adversely affect our revenues and profitability.This excerpt taken from the ACI 10-K filed Mar 1, 2010. Excess
production and production capacity in the coal industry could
put downward pressure on coal prices and, as a result,
materially and adversely affect our revenues and
profitability.
During the mid-1970s and early 1980s, increased demand for coal
attracted new investors to the coal industry, spurred the
development of new mines and resulted in additional production
capacity throughout the industry, all of which led to increased
competition and lower coal prices. Increases in coal prices over
the past several years have encouraged the development of
expanded capacity by coal producers and may continue to do so.
Any resulting overcapacity and increased production could
materially reduce coal prices and therefore materially reduce
our revenues and profitability.
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