Mining in Japan is minimal because Japan possesses very few mining resources. Japanese mining was a rapidly declining industry in the 1980s. Coal production shrank from a peak of 55 million tons in 1960 to slightly more than 16 million tons in 1985, while coal imports grew to nearly 91 million tons in 1987. Domestic coal mining companies faced cheap coal imports and high production costs, which caused them chronic deficits in the 1980s. In the late 1980s, Japan's approximately 1 million tons of coal reserves were mostly hard coal used for coking. Most of the coal Japan consumed is used to produce electric power.
Oil wells have been drilled off the west coast of Honshū and Japan has oil concessions in North Sakhalin. Iron is scarce outside of Hokkaidō and northwest Honshū, and iron pyrite has been discovered in Honshū, Shikoku and Karafuto. A modest quantity of copper and gold is mined around Honshū, Hokkaidō and Karafuto.
Japanese coal is found at the extreme ends of the country, in Hokkaidō and Kyūshū, which have, respectively, 45 and 40 percent of the country's coal deposits. Kyūshū's coal is generally of poor quality and hard to extract, but the proximity of the Kyūshū mines to ports facilitates transportation. In Hokkaido, the coal seams are wider and can be worked mechanically, and the quality of the coal is good. Unfortunately, these mines are located well inland, making transportation difficult. In most Japanese coal mines, inclined galleries, which extended in some places to 9.71 kilometers underground, were used instead of pits. This arrangement is costly, despite the installation of moving platforms. The result is that a miner's daily output is far less than in Western Europe and the United States and domestic coal costs far more than imported coal.