Traded coal on a global level continues to expand. While
the long-term importers remain in the trade – and continue
to increase demand – other countries have emerged as
significant markets as their domestic coal industry
is further exposed to a competitive coal market. Germany
and the UK are notable in this group, along with Spain.
But will this be a short- or long-term market opportunity
with the environmental policies being sponsored by a
number of the EU Member States?
Imports into the USA market are also growing, reflecting
the availability of coal from Colombia to access some
of the USA coastal regions.
This is a powerful reminder of the role of transport
in the cost-competitive delivery of coal into most global
markets and as a key factor in determining the export
source of the coal.
The second half of the 1990’s has seen the consolidation
of China and Indonesia as two of the top five exporters,
with around 10% of the global export market each.
Specific attributes of some coals have also aided the
development of coal production and heightened interest
in reserves located in countries such as Indonesia.
Low sulphur levels make many of the Indonesian coals
commercially attractive to a global customer base required
to meet ever-tightening SOx emission levels.
This highlights the importance of a qualitative assessment
of reserves that takes into account environmental issues
which are still evolving on a global level. Different
standards across different countries (from low to high)
suggest reported reserves would also reflect these differences,
to the degree that externalities have been and will
be incorporated into the reserves assessment.
Allied to this is the work of the US Geological Survey
(USGS) to create a reliable worldwide coal-quality and
related information database. The goal for the World
Coal Quality Inventory (WoCQI) is to generate reliable,
internally consistent coal quality analyses for all
major coal-producing countries.
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