CHAPTER ONE
INTRODUCTION
HISTORICAL BACKGROUND
The Nigeria Coal Corporation information manual (1990) states that “Coal was first discovered in 1909 at streams along Udi escarpment in Enugu state by the first group of British colonial adventures in Nigeria following a survey by the then colonial mineral survey department of southern Nigeria, actual mining started in 1916 at the foot of Udi hill along Enugu escarpment”.Iwu (1990) stated that “initially, the Coal industry was a unit of the marine department and Coal produced was supplied to the British for their steam boats. Other supplies were to the Nigeria Railways for the steam locomotives engines. Following the increase in transportation activities by rail, the Coal industry was excised from the marine department and established with the Nigerian Railway in 1937. Increased political awareness and a strike actin by Coal miners to back up demand for wage increase resulted in the gunning down of twenty-one Coal miners at Iva valley mine by their employers on 18th November 1949. THE THEN British government set up a commission of inquiry headed by Sir Fitzgerald. This commission recommended that independent body been set up to manage government established business. In 1950 by the ordinance No.29. The Nigerian Coal Corporation was born”
Iwu (1990) went further to state that” the Nigeria Coal Corporation was then managed by the British was charged with the responsibility to prospect, mine, treat and market Coal and Coal by products in Nigeria. However, it was the shooting of the twenty-one (21) coal miners in Enugu that awakened the spirit of nationalism which subsequently gave birth to Nigeria’s independence in October 1960. The Coal industry gave rise to the first set of industries in Nigeria besides providing all the energy requirements for the nations premier industries, Coal became one of the major foreign change; earners for the then British colony.
The principal consumers of Coal are: The cement factories construction companies and overseas market
AIMS AND OBJECTIVES OF THE STUDY
This study on the production of Coal in Enugu has the following objectives.
Estimation of the trend on production of coal for the past decade (ten years)
Determination of the seasonal influence on production of coal for the past decade (ten years).
Determination of the cyclical and irregular variation (if they exist).
Forecasting on the expected irregular of the production in future say one year ahead.

SCOPE OF THE STUDY
The analysis will be confined to the Coal production data covering 1990 to 1999 at the Nigerian Coals Corporation Enugu. It would study the growth pattern in coal production for the period under study.
What informed the choice of this period 1990 to 1999 is that it was in 1985-89 that then federal government decided to rehabilitate the Coal industry. Thus, the study will reveal how well the coal industry has some in terms of production and the future prospect.
The data for this analysis are categorized into monthly output of coal these are the daily output of Coal it is weighed in the factory. Measurement is in tones and it is cumulated at the end of the month to gives the figures being used for the study.
LITERATURE REVIEW
COAL:
Coal is a combustible rock which has its origin in the accumulation and partial decomposition of vegetation. Okafor (1981) described coal as “ a hard block mineral substance that burns and supplies heat and from which Coal gas in made” He went further to state that “it is formed out of decomposed plant matter for over hundred of thousand of years:.
The Coal in Nigeria was formed during the cretaceous period about 120 million years age, by the acting of pressure and heat on decayed vegetation. The coal reserves in the country are estimated to run into billions of tones.
Iman (1990) stated that “the total coal reserve in the country is over 2.7 billion tones and of which 600 million tones have been proven” Ali (1996) also stated that “with an estimated reserve of 2.75 billions tones deposited in 13 states viz, Enugu, Kogi, Edo, Anambra, Plateau, Benue, Imo, Abia, Ondon, Bauchi, Delta, Taraba, and Adamawa states. Nigeria coal has unlimited potentials for export”
Coal is classified into four main divisions usually, referred to as ranks depending on appearances and properties.
The four main ranks are:
Lignite
Sub-bituminous
Bituminous
Anthracite