Quote from chief_editor on October 10, 2023, 9:29 am
Tavantolgoi coal mine, southern Gobi, Mongolia. Adrian Bradshaw—EPA/Shutterstock.com
Coal continues to be one of the most important sources of energy fueling economies and providing electricity globally. Based on statistics from 2021, China stands as the largest coal producer in the world with output of 4,126 million tonnes.
China generated over 53% of the total global coal production of 7,269 million tonnes in 20211. The country is also the world's largest coal consumer, importer and importer. Let us look at the top 10 coal producing countries and their key production trends.
1. China
As the world's top producer, China mined 4,126 million tonnes of coal in 2021 which translates to around 11.3 million tonnes daily. China accounts for 13% of global coal reserves and relies on coal to meet over 60% of its energy needs2.
The country has rapidly increased coal production over the last two decades to meet its energy demands. From 2000 to 2020, China's coal output grew from 1.5 billion tonnes to 4 billion tonnes3. But coal's share in China's energy mix has fallen to 56% as cleaner energy sources are adopted4.
2. India
India produced 762 million tonnes of coal in 2021 becoming the second largest global producer. Coal meets around 70% of India's electricity demand as it provides an affordable option for power generation5. Coal India Limited is the world's largest coal mining company and produces over 80% of India's coal6.
India plans to continue expanding output to reduce imports and aid its economic growth. Coal production is targeted to reach 1.3 billion tonnes by 20257.
3. Indonesia
Indonesia produced 614 million tonnes of coal in 2021 making it the world's third largest producer. It exports around 80% of its coal production primarily to China, India and other Asian countries8. Indonesia aims to optimize its coal reserves to promote economic growth rather than reducing coal usage like other nations.
4. United States
The USA was the fourth largest coal producer in 2021 with output of 523.8 million tonnes. Although the US has the world's largest reserves of coal, accounting for 22%, coal production has been declining over the last decade due to reduced power sector usage as cleaner fuels become available9. US coal exports have also fallen leading to oversupply in global markets.
5. Australia
Australia was the fifth top coal producer with 467.1 million tonnes mined in 2021. It was the second largest exporter shipping out 171 million tonnes, primarily coking coal. Australia aims to phase down coal dependence but projects continued usage to support jobs and communities10.
6. Russia
Russia produced 435.3 million tonnes of coal in 2021, meeting around 15% of its primary energy consumption. Russia has proven coal reserves of 157 billion tonnes, placing it sixth globally11. Coal provides an affordable domestic heating and power source.
7. South Africa
South Africa mined 235.7 million tonnes of coal in 2021. Coal accounts for approximately 77% of South Africa's energy needs and nearly 70% of electricity12. State-owned Eskom is one of the major producers. Environmental concerns have affected investments.
8. Germany
Germany produced 126.3 million tonnes of coal in 2021 which provided over 20% of its electricity generation mix13. But Germany plans to completely phase out coal power by 2030 as part of its clean energy transition plan. Hard coal production will end by 2018.
9. Poland
Poland ranks ninth among global coal producers with output of 107.4 million tonnes in 2021. Coal accounts for around 70% of Poland's electricity generation14. Most production comes from Poland's largest coal company PGG. Government support exists for preserving coal jobs.
10. Kazakhstan
Kazakhstan produced 89.1 million tonnes of coal in 2021. It has Central Asia's largest recoverable coal reserves and relies on coal for nearly 80% of electricity needs15. But the landlocked country aims to export more coal rather than for domestic use.
Future Outlook
Coal production in developed countries like the US, Australia and Germany is expected to gradually decline but developing nations will drive most of the future growth. Thermal coal demand for power generation is estimated to remain stable for the next 5 years16. Countries like India and Indonesia expect to ramp up production capacity substantially by 2030. However, global initiatives to eventually phase down unabated coal usage may limit long-term growth prospects.
Tavantolgoi coal mine, southern Gobi, Mongolia. Adrian Bradshaw—EPA/Shutterstock.com
Coal continues to be one of the most important sources of energy fueling economies and providing electricity globally. Based on statistics from 2021, China stands as the largest coal producer in the world with output of 4,126 million tonnes.
China generated over 53% of the total global coal production of 7,269 million tonnes in 20211. The country is also the world's largest coal consumer, importer and importer. Let us look at the top 10 coal producing countries and their key production trends.
1. China
As the world's top producer, China mined 4,126 million tonnes of coal in 2021 which translates to around 11.3 million tonnes daily. China accounts for 13% of global coal reserves and relies on coal to meet over 60% of its energy needs2.
The country has rapidly increased coal production over the last two decades to meet its energy demands. From 2000 to 2020, China's coal output grew from 1.5 billion tonnes to 4 billion tonnes3. But coal's share in China's energy mix has fallen to 56% as cleaner energy sources are adopted4.
2. India
India produced 762 million tonnes of coal in 2021 becoming the second largest global producer. Coal meets around 70% of India's electricity demand as it provides an affordable option for power generation5. Coal India Limited is the world's largest coal mining company and produces over 80% of India's coal6.
India plans to continue expanding output to reduce imports and aid its economic growth. Coal production is targeted to reach 1.3 billion tonnes by 20257.
3. Indonesia
Indonesia produced 614 million tonnes of coal in 2021 making it the world's third largest producer. It exports around 80% of its coal production primarily to China, India and other Asian countries8. Indonesia aims to optimize its coal reserves to promote economic growth rather than reducing coal usage like other nations.
4. United States
The USA was the fourth largest coal producer in 2021 with output of 523.8 million tonnes. Although the US has the world's largest reserves of coal, accounting for 22%, coal production has been declining over the last decade due to reduced power sector usage as cleaner fuels become available9. US coal exports have also fallen leading to oversupply in global markets.
5. Australia
Australia was the fifth top coal producer with 467.1 million tonnes mined in 2021. It was the second largest exporter shipping out 171 million tonnes, primarily coking coal. Australia aims to phase down coal dependence but projects continued usage to support jobs and communities10.
6. Russia
Russia produced 435.3 million tonnes of coal in 2021, meeting around 15% of its primary energy consumption. Russia has proven coal reserves of 157 billion tonnes, placing it sixth globally11. Coal provides an affordable domestic heating and power source.
7. South Africa
South Africa mined 235.7 million tonnes of coal in 2021. Coal accounts for approximately 77% of South Africa's energy needs and nearly 70% of electricity12. State-owned Eskom is one of the major producers. Environmental concerns have affected investments.
8. Germany
Germany produced 126.3 million tonnes of coal in 2021 which provided over 20% of its electricity generation mix13. But Germany plans to completely phase out coal power by 2030 as part of its clean energy transition plan. Hard coal production will end by 2018.
9. Poland
Poland ranks ninth among global coal producers with output of 107.4 million tonnes in 2021. Coal accounts for around 70% of Poland's electricity generation14. Most production comes from Poland's largest coal company PGG. Government support exists for preserving coal jobs.
10. Kazakhstan
Kazakhstan produced 89.1 million tonnes of coal in 2021. It has Central Asia's largest recoverable coal reserves and relies on coal for nearly 80% of electricity needs15. But the landlocked country aims to export more coal rather than for domestic use.
Future Outlook
Coal production in developed countries like the US, Australia and Germany is expected to gradually decline but developing nations will drive most of the future growth. Thermal coal demand for power generation is estimated to remain stable for the next 5 years16. Countries like India and Indonesia expect to ramp up production capacity substantially by 2030. However, global initiatives to eventually phase down unabated coal usage may limit long-term growth prospects.
