RUHRKOHLE AG

German company that was created in order to consolidate all coal-mining activities in the Ruhr region. Headquarters are in Essen. Ruhrkohle, created in 1969, provides more than one-tenth of Germany's total coal production. Although coal is one of the country's major mineral resources, the coal industry suffered a severe decline in the 1960s owing to uneconomical mining methods and the shift of consumer demand to oil and gas. After a 1968 law provided for the closing of unprofitable pits, all major coal companies combined in the giant holding company, Ruhrkohle, to facilitate the slowing down of coal output and diversification of the coal-producing industry. Ruhrkohle is an integrated operation, engaged in the mining, processing, and refining of coal and other minerals related to energy production. Since the major market for coal is steel producers, the coal industry is particularly sensitive to fluctuations in durable goods production and was thus seriously affected by the worldwide recessions that occurred in the 1970s and '80s. Ruhrkohle also serves the utility industry and has a long-term supply agreement with the German state power authorities.