423520 - Coal and Other Mineral and Ore Merchant Wholesalers
The world of industrial raw materials is vast and critical to many sectors, including manufacturing, energy, and construction. One key player in this supply chain is represented by NAICS code 423520, which covers Coal and Other Mineral and Ore Merchant Wholesalers. If you’re a business owner, contractor, or government entity looking to understand this niche industry segment, this comprehensive guide will walk you through everything you need to know—from definitions and sector details to typical business activities and eligibility criteria.
What is NAICS Code 423520?
NAICS Code 423520 is designated for establishments primarily engaged in the merchant wholesale distribution of coal, minerals, ores, and related products. These businesses function as vital intermediaries, bridging the gap between raw material producers and end consumers by facilitating sales and distribution logistics. This includes everything from bulk coal coal distribution to specialized mineral concentrates.
Industry Overview
- Sector: Wholesale Trade
- Primary Focus: Wholesale distribution of coal, minerals, ores, and related products
- Role: Acting as intermediaries between producers (e.g., mining companies) and consumers (e.g., industrial manufacturers)
- Employment Size Standard: Typically, businesses in this NAICS code have an average employment size of 200 employees or fewer to qualify as "small" under SBA standards.
Typical Business Activities Under NAICS 423520
Businesses classified under this NAICS code commonly engage in:
- Coal wholesaling and distribution
- Handling and selling of various mineral ores and concentrates
- Fuel coal and coke merchant activities
- Supply of raw industrial materials for manufacturing processes
- Intermediary services connecting mining producers and industrial clients
Examples of Typical Business Types:
- Coal Wholesalers: Specialized in supplying coal for energy and industrial use.
- Mineral and Ore Distributors: Handling bulk sales of metallic and nonmetallic mineral ores.
- Industrial Raw Material Suppliers: Providing raw minerals and ores for manufacturing and processing industries.
Detailed Code Breakdown
Below is a detailed table summarizing the types of merchants and products under NAICS 423520:
| Code Details | Description |
|---|---|
| Bauxite merchant wholesalers | Distributors specializing in bauxite ores |
| Coal dust merchant wholesalers | Suppliers dealing with coal dust |
| Coal merchant wholesalers | Wholesale coal distributors |
| Coke merchant wholesalers | Suppliers of coke (a fuel derived from coal) |
| Concentrates, metallic, merchant wholesalers | Distributors of metallic concentrates |
| Fuel, coal and coke, merchant wholesalers | Wholesale suppliers of fuel coal and coke |
| Fuller's earth merchant wholesalers | Suppliers of fuller's earth, a type of clay |
| Magnesium ores merchant wholesalers | Distributors of magnesium ores |
| Metal ores merchant wholesalers | Suppliers of various metal ores |
| Metallic concentrates merchant wholesalers | Wholesale distributors of metallic ore concentrates |
| Minerals (except construction materials, petroleum) merchant wholesalers | Distributors of non-petroleum minerals except construction materials |
| Nonmetallic minerals merchant wholesalers | Suppliers of nonmetallic minerals |
| Nonmetallic ores merchant wholesalers | Wholesale distributors of nonmetallic ores |
| Ore concentrates merchant wholesalers | Distributors of ore concentrates |
| Ores (e.g., gold, iron, lead, silver, zinc) merchant wholesalers | Suppliers of precious and base metal ores |
| Precious metal ores merchant wholesalers | Wholesale distributors of precious metal ores |
Size Standards and Eligibility
The Small Business Administration (SBA) defines size standards for wholesaling under NAICS 423520 as:
- Maximum of 200 employees: Businesses must generally not exceed this employee count to qualify as a small business for government contracting and certain loan programs under this NAICS code.
Frequently Asked Questions (FAQ)
What types of products do businesses under NAICS 423520 typically distribute?
They primarily distribute coal, various metallic and nonmetallic minerals, ores (including precious metal ores), coke, and other related industrial raw materials.
Is NAICS code 423520 limited to coal only?
No, it includes coal and other minerals and ores, such as bauxite, magnesium ores, fuller's earth, and precious metal ores.
What industries rely on businesses under this NAICS code?
Industries like energy production, metallurgy, manufacturing, and chemical processing heavily rely on these wholesalers.
How do businesses benefit by being classified under NAICS 423520?
Classification can help in pursuing government contracts, understanding market competition, and qualifying for small business programs based on size standards.
Can a company engaged in retail sales fit under this NAICS code?
No, this NAICS code is specifically for merchant wholesalers, not retail establishments.
Conclusion
NAICS code 423520 plays an essential role in the industrial supply chain by focusing on the wholesale distribution of coal, minerals, ores, and related raw materials. Whether you are a supplier, manufacturer, or government agency, understanding the scope, business types, and classification details of this industry can provide a competitive advantage in procurement and market positioning.
For businesses aiming to grow or compete in this sector, complying with size standards and leveraging the correct NAICS code can open doors to new contracts, resources, and partnerships in the coal and mineral wholesale trade market.
Keywords: NAICS 423520, Coal merchant wholesalers, Mineral wholesalers, Ore distributors, Industrial raw materials, Wholesale trade coal, SBA size standards, Coal and mineral wholesaling
