Coal

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Compared to oil, about half of which moves across national borders before being consumed, around 85% of coal is mined in an indistinguishable nation from it is singed. In any case, coal sends out are developing in significance, as increments in coal-terminated power age in India and China outpace increments in coal generation in those nations. Progressively, Indian and Chinese organizations are not just purchasing expanded measures of coal from abroad, but at the same time are putting resources into mines or purchasing mines by and large in Australia, Indonesia, Mongolia, Russia, South Africa, the United States, Tanzania, Zambia.

At present, the world's driving exporters of coal are Australia and Indonesia, which together accounted in 2010 for over portion of the overall aggregate. Different exporters, arranged by tonnage, are Russia, Colombia, South Africa, and the United States.

With interest for coal by U.S. control makers on the decay, coal digging organizations are searching for fares to fill the hole. As of now, heft of U.S. coal dug for trade originates from Central Appalachia. Around 66% of U.S. coal sends out are high-BTU metallurgical or "coking" coal utilized for steelmaking. Recommendations for extension of fares center around sending coal from the Powder River Basin of Wyoming and Montana over rail lines to West Coast ports for shipment to Asian purchasers. Prospects for such an extension have incited real resistance from a wide exhibit of native gatherings

Uptill Recently, Coal India Limited held a Monopoly over the coal trade in the country with close to 95% of the coal being produced in the country being sold by them. Private companies were sold coal through auctions and quota established in as per the Nationalization Act with a lot of coal coming into the secondary market for reselling from companies which have existing quotas but not as much requirement. The supply chain of coal in India still contains has presence of Coal Mafia’s which control the movement of Coal to the private companies & act as a hinderance for Reforms in the Coal Trade and Coal Mining in the country.

Coal is one of the oldest sources of Energy in the world. Throughout history, coal is burned to produce electricity and also has applications in metal refinement and extraction of Organic-chemicals. It is estimated that close to 40% of the World’s Electricity comes from Coal & almost all steel produced in the world either through the primary process or through the secondary routes utilize coal in one manner or another.

Even though the world is moving to cleaner fuels, the demand of coal throughout the world is estimated to increase by 0.6% per year 150 Quadrillion in 2012 to close to 180 Quadrillion in 2040. The top 10 countries in the world in terms of coal production produce 90% of the coal extracted per year with China extracting close to 3.6 Billion Tonnes of coal in 2012 accounting for a whopping 47% of the world coal production. The United States and India for another 21% of the world’s coal production with a combined production of 1.5 Billion Tonnes in 2012.

In terms of consumption, China, India & the United States of America remain the top 3 consumers of coal with China alone accounting for half of the world’s coal consumption with India and United States accounting for a further 25% of the coal consumed across the world. The 3 countries also possess the world’s Highest Coal Reserves & count on other coal producing countries such as Australia & Indonesia for coal.

Coal is extracted from the ground by coal mining, either underground by shaft mining, or at ground level by open pit mining extraction. The varieties of Coal that are generally found in India are Anthracite, Bituminous, Lignite, and Peat.

Anthracite Coal

is the best quality of coal and contains over 85 per cent carbon. It is very hard, compact, jet black coal having semi-metallic luster. In India, it is found only in Jammu and Kashmir and that too in small quantity.

Bituminous Coal

is the most widely used coal and contains 50 to 85 per cent carbon. It is dense, compact, and brittle and is usually of black colour. Most of the bituminous coal is found in Jharkhand, Orissa, West Bengal, Chhattisgarh and Madhya Pradesh.

Lignite

also known as brown coal is a lower grade coal and contains about 35-50 per cent carbon. It represents the intermediate stage in the alternation of woody matter into coal. Its colour varies from dark to black brown. It is found in Palna of Rajasthan, Neveli to Tamil Nadu, Lakhimpur of Assam and Karewa of Jammu and Kashmir.

Peat

is the first stage of transformation of wood into coal and contains less than 35 per cent carbon. It is seldom sufficiently compact to make a good fuel without compressing into bricks.

Industry that uses Coal:

Here is a list of the Major Uses of Coal

Electricity Production

1 - Coal is mainly used as Fuel to generate Electricity through combustion. Approximately 6.8 Billion Tons of Coal was consumed and that is expected to keep on increasing at around 1.5-2% per year in the next 20 years.Steamcoal, also known as thermal coal, is used in power stations to generate electricity.

Steel Production

2 -Steel Industry is the second largest user of Coal after the Electricity Industry.More than 600 million tons of Coal were used to produce more than 1 Billion Tons of Steel.Coal is an essential raw material along with iron in the production of steel which is one of the useful metal products used by man today.Coking Coal is a solid carbonaceous residue derived from low-ash, low-sulfur bituminous coal.Metallurgical coke is used as a fuel to smelt Iron in the Furnace.This Cast Iron which is produced is further refined to make Steel. Around 0.63 tones of coke produces 1 ton of Steel

Cement Industry

3 -Coal is used as an energy source in the cement industry. Large amounts of energy are required to produce cement. Kilns usually burn coal in the form of powder and consume around 450g of coal for about 900g of cement produced.By-products generated from burning coal in coal-fired power plants such as fly ash, bottom ash, boiler slag and flue gas desulphurization gypsum are also used in Concrete Production (source WCA). Fly ash can be used to replace cement in concrete

Paper Industry and Aluminum Industry

4 -Both these industries require large amounts of Fuel and Energy.Coal being the cheapest energy resource forms an essential input to these industries.The price and availability of Coal is an important factor in the growth of these industries

Chemicals and Pharma Industry

5 - Several chemical products can be produced from the by-products of coal. Refined coal tar is used in the manufacture of chemicals, such as creosote oil, naphthalene, phenol, and benzene.

Coal Gas and Coal Liquid as Transportation Fuel

6 -Current Transportation Industry does not make much use of Coal as Fuel.However the increasing cost of Oil has made it economical to consider converting Coal into Gas and Liquid which can be used to power vehicles,ships etc.

Coal is also used in thousands of other applications and products like soap,fiber making,rayon,cooking fuel etc.

The main use of coal is in the production of electricity. In India in 2012-13, 446.76 million tons coal was used by Electricity Industry. It was followed by Steel and Iron industry (16.15 million tons), Cement industry (13.11million tons) and Paper industry (2.12 million tons).Coke, a product left after heating coal, is used to manufacture iron and steel.

India’s power sector is mainly fuelled by coal, which provides roughly 78% per cent of its capacity and 76 per cent of its total generation. In the past few years, it has become an increasingly important source of growth for coalminers as China and the US have begun to use less of their product. With the country’s population growing rapidly and the government of Narendra Modi promising to electrify the whole country, companies are banking on continued growth for the foreseeable future. Adani Group, one of India’s biggest industrial conglomerates, has given the go-ahead to build a $12.7bn mine in Australia to extract coal that will then be used in its power plants back at home. But IEEFA’s analysis suggests that the growth in coal demand in India’s power sector could slow down more quickly than people expect, and stall entirely by 2027. In its place will come renewables, which provide 7 per cent of generation, but which IEEFA predicts will account for 27 per cent by 2027. The change has come because renewable power, and solar in particular, is falling in price more quickly than analysts predicted. Last week Enel Green Power, the Italian renewable power company, agreed to build a solar park in Mexico for a world record low price of just 1.77 cents per unit of electricity. An analysis by Mercom, a clean energy research company in India shows that in the past quarter the country installed more 2.2 gigawatts of solar power — more than ever before.

Mining of coal in India was nationalized uptill 2018 wherein Public Sector Companies Such as Coal India Limited were responsible for the production of coal to meet the demands of the company. With the repealing of the Coking Coal Mines(Nationalization) Act & the Coal Mines(Nationalization) Act in 2018, the coal mining industry is set to undergo a paradigm shift in terms of productivity and efficiency as Private players are being auctioned Coal Blocks for mining to the highest bidder offering the highest Per MT Prices for the mines. The country currently has 12 major Coal Mining Blocks which are located in the states of Jharkhand, West Bengal, Chatissgarh, Orissa, Tamil Nadu &Telengana which account for more than 95% of the coal production in the country.