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WHAT is COAL?

The degree of 'metamorphism' or coalification undergone by a coal, as it matures from peat to anthracite, 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 characterised by high moisture levels and a low carbon content, and hence a low energy content. Higher rank coals are typically harder and stronger and often have a black vitreous lustre. Increasing rank is accompanied by a rise in the carbon and energy contents and a decrease in the moisture content of the coal. Anthracite is at the top of the rank scale and has a correspondingly higher carbon and energy content and a lower level of moisture.

(from Coal - Power for Progress - Fourth Edition (January 1999), World Coal Institute, www.wci-coal.com)

Escalating Worldwide Energy Demand
During the period 1995 to 2020, demand for energy worldwide is forecast to increase by around 65% - equivalent to 2% per annum. Fossil fuels are expected to meet 95% of this additional energy demand.

Adequate energy supplies are essential if the world's nations are to sustain their industrial and economic expansion.

In the developing world, the first sign of improving standards of living is the supply of electricity. Initially, this may just be to provide lighting, but it is quickly required to power household and industrial appliances of every kind. Developing economies, with their industrial development and rising living standards, are consuming electricity at a rapidly expanding rate. In Indonesia, for example, power generation has increased by 13% per annum during the period 1980-1997, and is forecast to continue growing at or above this rate.

As economic development takes place, households start to switch from traditional sources of energy (such as wood) to modern ones (such as electricity). Central to the development process is the building of infrastructure (roads, railways, ports etc) and the growth of cities. Often, economic growth has depended on the export of processed raw materials and manufactured goods. Such energy intensive activities imply a rapid growth in energy use through the early stages of industrialisation.

The growth in energy demand will increasingly rely on the abundance of coal throughout the world, into the next century and beyond.

Nevertheless, it is vital that coal, along with all fossil fuels, continues to be used with ever increasing efficiency in order to conserve these valuable resources.

Supplies of Coal are Secure
A number of countries lack indigenous energy resources. Dependence on imported fuels can make a nation vulnerable to shortages if there are economic or political disturbances in the region of their main sources of supply. This risk is greater if these fuel resources are concentrated in only one or two areas of the world. For example, more than 60% of oil reserves are located in the Middle East, and more than 70% of gas reserves are in the Middle East and the Former Soviet Union (FSU). Serious disruptions in the world's energy economy resulted from a rapid price escalation and a 5% reduction in oil supply in the 1970s, when OPEC (Organisation of the Petroleum Exporting Countries) became an important force in the energy market.

Such disturbances are of much less concern to those countries which rely on coal for a major part of their energy needs. This results from both geographic diversity of reserves and security of imports. Many nations can use their own indigenous coal reserves, and those without reserves can safely rely on imported coal. Security of imports is assured by the competition between the many coal-supplying countries of the world, and also because coal can usually be transported by secure sea routes directly to the consuming country. A major disruption to supplies of coal from one region of the world could soon be made up by increased supplies from other regions, which guarantees power generators and steel makers stability and security of supply. Around 37% of the world's electricity, and about 70% of the world's steel, is based on coal.

Over 3,650 million tonnes (Mt) of hard coal were produced in 1998, more than half of which was used to generate electricity. The main producers of hard coal were: the Peoples' Republic of China (China), the USA, India, South Africa, Australia, Russia, Poland, Ukraine, Kazakhstan, Indonesia, Germany and the UK. Of the hard coal produced in 1998, over 500 Mt were traded internationally. It is estimated that international trade in bituminous coal will continue to grow to over 560 Mt in 2000.

(from Coal - Power for Progress - Fourth Edition (January 1999), World Coal Institute, www.wci-coal.com)