25 Largest Coal Producing Countries in the World
In this article, we will list countries that produce the most coal and discuss global coal market trends. You can skip the details and go to 5 Largest Coal Producing Countries in the World.
Global Coal Dynamics
In recent decades, global coal production has undergone significant changes, impacting various industries and the overall energy sector. From 2009 to 2019, coal usage globally saw a modest annual increase, reaching 7.6 billion tonnes. However, during this period, coal's share in the global primary energy mix slightly decreased from 28% to 26%, and its contribution to electricity generation dropped from 40% to approximately 36.5%, as per the Energy Information Administration (EIA).
These shifts in the coal industry were driven by some key factors. For instance, in China, a major player in global coal production and consumption, changes in economic priorities and growth patterns led to coal use stagnating after 2013, signaling a transition towards a more diversified and energy-efficient economy. In the United States, the emergence of the shale gas revolution, characterized by lower natural gas prices, significantly diminished coal dependence, especially in electricity generation. As a result, coal's share in the U.S. electricity mix fell from 45% to 24% over a decade, while natural gas usage increased from 23% to 38%, according to Climate Nexus.
However, 2022 witnessed a dramatic shift in the coal market. Factors such as geopolitical tensions, including Russia's invasion of Ukraine, a global energy crisis that led some regions to switch from natural gas to coal, and volatile global economic conditions, pushed coal demand to an all-time high of over 8 billion tonnes. At the same time, coal's role in electricity generation remained substantial in parts of Europe, China, and India, where it continues as a primary energy source.
Must Read: 25 Countries That Produce the Most Natural Gas
Big Names in Coal Mining
Large-scale coal mining companies are integral in meeting the global coal demand, primarily driven by the need for coal in electricity generation and steel manufacturing. Among these, the BHP Group (NYSE:BHP) stands out. It operates two major projects in Australia: the BHP Mitsubishi Alliance (BMA) in Central Queensland and the New South Wales Energy Coal (NSWEC) project in Sydney.
The BHP Mitsubishi Alliance, a joint venture equally owned by BHP Group (NYSE:BHP) and Mitsubishi Corp of Japan, manages seven metallurgical coal mines in Queensland's Bowen Basin. These include Goonyella Riverside, Broadmeadow, Daunia, Peak Downs, Saraji, Blackwater, and Caval Ridge. While most are surface mines, Broadmeadow distinguishes itself as an underground longwall operation.
In 2023, the BMA, under BHP's management, produced 29 million metric tons of coal, accounting for half of the venture's total output of 58 million metric tons. This level of production aligns with previous periods. Additionally, BHP Group (NYSE:BHP) solely owns the New South Wales Energy Coal project. In fiscal 2023, NSWEC's production increased by 3% to 14.2 million metric tons, attributed to improved weather conditions in the latter half of the year, enhanced truck productivity, and expansion into a new mining area, resulting in higher prime stripping volumes. The project is expected to produce between 13 and 15 million metric tons of coal in fiscal 2024.
Also Read: 12 Largest Coal Mining Companies in USA
A Major Recent Development in the Coal Mining Sector
On November 14, 2023, Glencore plc (LSE:GLEN) completed a significant acquisition by purchasing a majority stake in Teck Resources Limited's (NYSE:TECK) coal production sector. Glencore now owns 77% of Teck Resources Limited (NYSE:TECK)’s Elk Valley Resources (EVR), a leading entity in steelmaking coal production. The acquisition, valued at US$6.93 billion, is based on a calculation excluding cash and debt and is considered a normalized level of working capital. EVR, having produced 21.5 metric tons of steelmaking coal in 2022 and 17.3 metric tons by September 30, 2023, is expected to bolster job creation and meet the increasing demand for coal in steel production.
Additionally, Teck Resources Limited (NYSE:TECK) confirmed a separate agreement with Japan's Nippon Steel Corporation (NSC). This deal involves NSC converting its existing 2.5% stake in Elkview Operations into shares in EVR and purchasing additional shares from Teck, culminating in a 20% ownership in EVR upon completion of the transaction.
You can learn more about this acquisition in 20 Most Valuable Mining Companies in the World.
Let’s now talk about the leading coal-producing countries in the world!
25 Largest Coal Producing Countries in the World
Our Methodology
We referred to the 72nd edition of the Energy Institute's Statistical Review of World Energy to identify the top coal-producing countries. Our list was compiled by averaging the annual coal production of these countries from 2020 to 2022 and ranking them in ascending order based on their average production.
Note:
A metric ton is also referred to as a tonne and is equivalent to 1,000 kilograms or approximately 2,204.62 pounds.
A short ton, commonly used in the United States, is equal to 2,000 pounds, which is about 907.185 kilograms.
Based on our findings, here are the countries that produce the most coal:
25. Mexico
Average Annual Coal Production: 6.2 million metric tons
The coal industry in Mexico, centered in the Coahuila region, plays a significant role in the country's energy sector. As of 2022, Mexico's coal output has remained steady at 5.50 million metric tons, roughly matching the production figures of the previous year. This stability in production marks a departure from earlier years when there was a noticeable decline from a peak of approximately 15.20 million metric tons in 2012. Coahuila is a critical hub for this industry, contributing nearly 99% of Mexico's total coal production. In addition to its domestic coal production, Mexico relies on imports to power its major coal-fired electricity plants, which include Carbon II, José López Portillo, and Petacalco. These imports primarily come from Australia, Colombia, Canada, and the United States.
24. Brazil
Average Annual Coal Production: 7.5 million metric tons
In 2022, Brazil's total coal production stood at 7.5 million metric tons, reflecting a 6.8% year-on-year decline from 2021. Coal plays a relatively minor role in Brazil's energy profile when compared to its substantial investments in renewable energy sources like hydropower, biofuels, wind, and solar energy. The country's energy strategy is progressively shifting towards more sustainable and less carbon-intensive sources, with renewables accounting for nearly half of Brazil's primary energy consumption.
23. Pakistan
Average Annual Coal Production: 9.8 million metric tons
The Thar Coalfield, a crucial component of Pakistan's coal industry, primarily supplies the country's power generation facilities, while coal extracted from other regions is mainly used in sectors such as brick manufacturing. A report from The Diplomat states that as of the end of the fiscal year 2023 (ending on June 30, 2023), Pakistan's domestic coal production reached an estimated 9.4 million tonnes. Nevertheless, Pakistan continues to import a significant amount of coal, approximately 6.6 million tonnes, underscoring the ongoing significance of foreign coal in its energy strategy. The country's energy infrastructure heavily relies on coal, with power plants utilizing Thar coal contributing over 3,300 MW to the national grid. This is complemented by an additional 3,960 MW generated by plants using imported coal.
22. Greece
Average Annual Coal Production: 13.4 million metric tons
In 2022, Greece's coal production reached 14 million metric tons, marking a 12.4% increase from the previous year. However, this recent upturn contrasts with a broader trend of decline from much higher production levels in the past, such as the 70 million metric tons recorded in 2004. Furthermore, in line with global sustainability trends, Greece is actively transitioning to a greener energy policy. This commitment is exemplified by the adoption of the National Climate Law in May 2022, which sets ambitious targets for a 55% reduction in greenhouse gas emissions by 2030 and aims for net-zero emissions by 2050.
21. Thailand
Average Annual Coal Production: 13.7 million metric tons
Thailand's approach to coal production is characterized by a changing landscape, where the reliance on fossil fuels, especially coal, for power generation is undergoing a gradual reassessment. This transformation is driven by mounting environmental concerns and the country’s commitment to international climate change initiatives, including its National Determined Contributions (NDCs). Consequently, Thailand is exploring the adoption of carbon pricing as a strategic tool to shift away from traditional, carbon-intensive energy sources like coal.
20. Romania
Average Annual Coal Production: 16.9 million metric tons
Romania's coal production increased from 17.7 million tons in 2021 to 18.2 million metric tons in 2022, reflecting a 2.4% yearly growth and positioning it among countries that produce the most coal. Furthermore, the country's coal production has decreased by 6% from 2012 to 2022, influenced by global market forces, technological advancements, and evolving environmental regulations. The dynamics of global coal demand and production are continually changing, heavily impacted by the economic developments in key coal-consuming countries, particularly India, and shifting energy usage patterns within the industrial sector.
19. Ukraine
Average Annual Coal Production: 21.9 million metric tons
Ukraine's coal production stood at 16.5 million metric tons in 2022, a significant decrease from 24.9 million metric tons in 2021, representing a 33.7% year-on-year decline. Additionally, over the past decade, the country's coal production has decreased by 12.9%. Ukraine's coal production is primarily concentrated in the Dnieper-Donetsk region in the eastern part of the country. This region holds a substantial share of Ukraine's hydrocarbon resources and plays a major role in its coal industry. Historically, Ukraine has been a prominent player in the coal industry, especially within the Former Soviet Union (FSU). As of 2010, within the FSU, Ukraine contributed 11% of the coal production, with Russia leading at 66% and Kazakhstan following at 22%.
18. Bulgaria
Average Annual Coal Production: 28.8 million metric tons
In recent years, lignite-based coal production has played a pivotal role in Bulgaria's energy sector, particularly in electricity generation. The year 2021 witnessed a significant increase in this domain, with local coal production rising by over 30%, clearly indicating its substantial role in the national energy landscape.
Bulgaria's energy sector is characterized by a mix of nuclear, thermal, and renewable energy sources, with a strong emphasis on harnessing local energy resources. Indeed, these local sources accounted for more than 90% of the country's electricity generation in 2021, as reported by the IAEA.
17. Czech Republic
Average Annual Coal Production: 32.7 million metric tons
In 2022, the Czech Republic produced 35.2 million metric tons of coal, an increase from the 31.5 million metric tons produced in 2021. As of 2019, coal accounted for one-third of the total energy supply, 46% of electricity generation, and over 25% of residential heating in the country. In the Czech Republic, coal extraction primarily occurs in three key regions: the northwestern Bohemian region, the northeastern Ostrava-Karviná coalfield, and Northern Moravia. The northwestern Bohemian region is well-known for its extraction of brown coal, particularly in localities such as Chomutov, Most, Teplice, and Sokolov. Conversely, the Ostrava-Karviná coalfield in the northeast of Czechia is renowned for its production of bituminous coal, primarily used in coking.
16. Serbia
Average Annual Coal Production: 33.7 million metric tons
Coal production plays a crucial role in Serbia's energy landscape, with the state-run power company Elektroprivreda Srbije (EPS) responsible for generating approximately 70% of the country's electricity, primarily from coal sources. While the Serbian administration acknowledges the need for a transition to renewable energy, coal remains a significant energy source. This is evident in Serbia's efforts to modernize and environmentally optimize its coal-powered facilities. A prime example of this initiative is the near completion of the Kostolac B3 coal power plant, designed to produce between 2.2 and 2.5 TWh annually, making a substantial contribution to EPS's energy output.
15. Mongolia
Average Annual Coal Production: 38.2 million metric tons
Mongolia's coal production experienced a yearly increase of 21.7% between 2021 and 2022, solidifying its position as one of the largest coal-producing countries in the world. From 2007 to 2012, the country witnessed a significant surge in coal exports, accounting for nearly half of its total export value in 2012. This upward trend reversed in 2013 but showed signs of recovery by 2014, driven by increasing demand from the Chinese steel industry. A critical factor in the expansion of this industry is the development of the Tavan Tolgoi coalfield, which is considered one of the world's largest reserves of coking coal.
14. Canada
Average Annual Coal Production: 46.5 million metric tons
Canada's coal industry, a vital component of its mining sector, primarily produces steel-making and thermal coal. In 2022, the country's total coal output reached approximately 45.1 million tonnes. According to the Coal Association of Canada, the country’s production was nearly evenly divided between thermal coal, primarily used domestically, and steel-making coal, primarily exported. Alberta, British Columbia, and Saskatchewan are key coal-producing provinces, contributing 32%, 50%, and 16% to the national total, respectively. Canada's role in the global steel market is significant, particularly in Asia, where it supplies 61% of its coal exports.
13. Vietnam
Average Annual Coal Production: 47.5 million metric tons
In 2022, Vietnam's coal production increased by 3.2% compared to 2021, reaching a total of 49.8 million metric tons. Furthermore, Vietnam Energy reports that during the first six months of 2023, the country's primary coal enterprise, Vinacomin, significantly boosted its production, surpassing 21 million tons of coal allocated primarily for power generation. This represents substantial growth compared to the previous year and underscores Vinacomin's effective management and critical role in ensuring a consistent electricity supply, especially during periods of high demand.
12. Colombia
Average Annual Coal Production: 56.7 million metric tons
Colombia has established itself as a significant player in the international coal sector, securing the 12th position among the top coal-producing countries. Despite experiencing a decline in its production rate with a Compound Annual Growth Rate (CAGR) of -9.93% between 2016 and 2021, the country saw a 4% increase in coal output in 2022 compared to the previous year. Looking ahead, forecasts suggest a gradual improvement in coal production, which is expected to grow at a CAGR of 1% from 2022 to 2026, according to Mining Technology. The country's coal reserves, primarily consisting of bituminous coal, are located mainly in the Guajira peninsula and the Andean foothills. Notably, Colombian coal is renowned for its low sulfur content, which is less than 1%, enhancing its appeal in international markets due to its clean-burning properties.
11. Turkey
Average Annual Coal Production: 85.7 million metric tons
Turkey ranks 11th among countries that produce the most coal, contributing to approximately 1% of the world's coal output. This position is characterized by a consistent upward trend in production, with a 5% increase from the previous year, and forecasts suggest further growth between 2022 and 2026, according to Mining Technology.
Central to Turkey's coal mining history is the Zonguldak Province, situated along the Black Sea coast. Mining in this region dates back to the 19th century, with significant expansion during the early 20th century, notably influenced by French industrial interests. The Turkish Hard Coal Enterprise (TTK), a state-run entity, oversees five major coal mines in Zonguldak, including the prominent Kozlu mine.
10. Poland
Average Annual Coal Production: 105.2 million metric tons
Historically, Poland has heavily relied on hard coal for electricity generation, overall energy production, and its total energy supply (TES). This dependence positioned Poland as one of the top consumers of coal among International Energy Agency (IEA) member countries. However, in the decade from 2012 to 2022, there was a significant decline as the country's coal output decreased from 144 million metric tons to 107 million metric tons.
In contrast, in 2021, there was a resurgence in coal usage, particularly in electricity production, where coal-fired power accounted for 80% of Poland's total electricity generation, as reported by the IEA. Notably, since 2017, Poland has transitioned into a net importer of coal, highlighting the challenges it faces in maintaining self-sufficiency in coal production.
9. Kazakhstan
Average Annual Coal Production: 115.8 million metric tons
Kazakhstan, the largest landlocked country, ranks as the 9th largest coal producer globally and holds the top position among the ex-Soviet states, surpassing even Russia. Its coal production primarily originates from the central part of the country, where two principal basins are located. The Karaganda Basin is primarily engaged in the extraction of metallurgical coal through underground mining techniques. In contrast, the Ekibastuz Basin, known as the third largest in the Former Soviet Union (FSU), is chiefly dedicated to supplying coal for power generation.
Following a downturn from 2012 to 2016, there was a significant resurgence in 2017 and 2018 in the country's coal production. This upswing was evident in the production increase to 118.5 million tonnes by the end of 2018, marking a 6% rise from the previous year. In 2022, the country's coal production reached 118 million metric tons, up from 116.2 million metric tons in 2021. The Kazakhstan government has set ambitious targets to increase coal production to nearly 200 million tonnes by 2030.
8. Germany
Average Annual Coal Production: 122.2 million metric tons
In Germany, the coal mining sector is primarily concentrated in three major brown coal (lignite) mining regions: the Rhenish mining area in North Rhine-Westphalia, the Lusatian region spanning Brandenburg and Saxony, and the Central German mining district located across Saxony and Saxony-Anhalt. These areas are characterized by surface (opencast) mining operations, which are economically viable and mainly supply nearby power stations.
Regarding electricity generation, 2022 saw coal as a dominant source, contributing to one-third of Germany's electricity grid supply, according to Statistisches Bundesamt. This marked an 8.4% increase from the previous year. However, a significant reduction in coal power generation was observed in the third quarter of 2023, with a 47% decrease, signaling a trend towards alternative energy sources.
7. South Africa
Average Annual Coal Production: 223.9 million metric tons
South Africa maintains its status as one of the top seven coal producers globally and is recognized as a significant contributor to the global coal market. The country's coal sector is influenced by key industry players such as Sasol, Anglo American, and Exxaro Resources. Notably, Sasol manages six coal mines and produces approximately 40 million metric tons each year, primarily used for energy production and their coal-to-liquid operations. South Africa's coal predominantly originates from Witbank, Highveld, Free State, and Ermelo in the eastern part of the country.
In 2020, the country exported about 77.4 million short tons of coal, primarily to Asian countries, with India and Pakistan being major recipients. The coal industry is also a significant source of employment in South Africa, providing jobs to over 90,000 people in 2022, as reported by the Minerals Council of South Africa.
6. Russia
Average Annual Coal Production: 424.3 million metric tons
Russia has firmly established itself as a key player in the global coal export market, with a primary focus on European and Asian countries. Its strategy increasingly centers on enhancing coal exports, particularly to Asian countries, in alignment with its economic objectives. This shift is accompanied by trade agreements, most notably with China, which include projects aimed at developing substantial mining and related infrastructure.
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Disclosure: None. 25 Largest Coal Producing Countries in the World is originally published at Insider Monkey.
