Results from the Regulations

Don’t get me wrong, regulations are needed. This is true for any industry. Without some regulation many people would be in danger just going to work. But regulations surrounding the mining industry is different the other industry regulations. Many companies in the coal mining industry are struggling to survive because of these regulations. Colton Parsons told me, “Prepare for a career in mining commodities other than coal in case the coal industry is regulated into extinction.” This was in response to a question I asked about what students should expect when looking for a job near graduation. These regulations are strangling the coal industry. It is also hurting other industries as well but coal may be the most effected. Looking at data from the US Census Bureau, all of the major divisions of mining have experienced a cut in employment because they can’t afford the keep employees. This is in connection to the price of the commodity being sold. If the price is down, mining companies will not make as large of a profit if prices are high. According to the US Energy Information Administration, within six months, from November 2008 to June 2009, coal prices were cut by over half. They have remained at this level since. This is the same time when the current administration took office for the first term. The recession began and so did the governments grip on the coal industry and other mining industries as well.