Survey Of Energy Resources
COAL (INCLUDING LIGNITE)

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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