coal & coal markets

Frequently Asked Questions

1.   What is coal?

Coal is a fossil fuel. It is a combustible, sedimentary, organic rock, which is composed mainly of carbon, hydrogen and oxygen. It is formed from vegetation, which has been consolidated between other rock strata and altered by the combined effects of pressure and heat over millions of years to form coal seams.

2.  What are the different types of coal?

The degree of change undergone by a coal as it matures from peat to anthracite - known as coalification - has an important bearing on its physical and chemical properties and is referred to as the 'rank' of the coal. Low rank coals, such as lignite and sub-bituminous coals are typically softer, friable materials with a dull, earthy appearance. They are characterized by high moisture levels and low carbon content, and therefore a low energy content. 

Higher rank coals are generally harder and stronger and often have a black, vitreous lustre. They contain more carbon, have lower moisture content, and produce more energy. Anthracite is at the top of the rank scale andhas a correspondingly higher carbon and energy content and a lower level of moisture.



Source: The Coal Resource: A Comprehensive Overview of Coal. The World Coal Institute.


3.  Where is Coal Found?

It has been estimated that there are over 984 billion tonnes of proven coal reserves worldwide (see definitions below in question 4). This means that there is enough coal to last us over 190 years. Coal is located worldwide -- it can be found on every continent in over 70 countries, with the biggest reserves in the USA, Russia, China and India.


4.   What is meant by the terms coal resources, indicated reserves and measured reserves?

The term Resource refers to the amount of coal that may be present in a deposit or coalfield. This does not take into account the feasibility of mining the coal economically. Not all resources are recoverable using current technology.

Reserves can be defined in terms of indicated (probable) or measured (proved) reserves. Indicated or Probable reserves have been estimated with a lower degree of confidence than proved reserves. Measured or Proved reserves are not only considered to be recoverable but can also be recovered economically. This means they take into account what current mining technology can achieve and the economics of recovery. Proved reserves will therefore change according to the price of coal; if the price of coal is low, proved reserves will decrease.
Source: IEA Coal Information 2004

5.   Who are the largest producers of coal?

While recoverable coal reserves are found in around 70 countries, the largest producers of coal are China, the USA, India and Australia.  South Africa is the fifth largest producer of hard coal. Over 68% of oil and 67% of gas reserves are concentrated in the Middle East and Russia.

Top Ten Hard Producers of Hard Coal
(Million of tonnes - 2006e)

PR China 2482 Mt
USA 990 Mt
India 427 Mt
Australia 309 Mt
South Africa 244 Mt
Russia 233 Mt
Indonesia 169 Mt
Poland 95 Mt
Kazakhstan 92 Mt
Colombia 64 Mt

Source: Coal Facts 2007, World Coal Institute

6.   How important is coal compared to other sources for the generation of energy worldwide?

Coal provides 25% of global primary energy needs and generates 40% of the world's electricity.


http://www.worldcoal.org/assets_cm/files/image/coalfacts_piechart_2005.gif

   Source: Coal Facts 2007, World Coal Institute

7.   Which countries depend significantly on coal for generating electrical power?

Coal is the major fuel used for generating electricity worldwide - countries heavily dependent on coal for electricity include (2006e):

Poland 93% Israel 71%* Czech Rep 59%
S Africa 93%* Kazakhstan 70%* Greece 58%
Australia 80% India 69%* USA 50%
China 78% Morocco 69%* Germany 47%

Source: Coal Facts 2007, World Coal Institute
* only 2005 figures available for these countries



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